Quick answer
Professional services firms such as accountants, law firms, engineers, architects and consultancies use property-secured loans to carry work in progress and debtors, fund partner buyouts, acquire other practices, buy their offices and clear tax liabilities. Secured over offices or principals' homes, these loans are assessed on property and exit rather than the firm's uneven billing cycles.
Key points
- Carries work in progress and slow-paying debtors
- Funds partner buyouts and succession
- Practice and book acquisitions
- Office purchases and fit-outs
- Low doc options where accounts are behind
Profitable on paper, short of cash in practice
Professional services firms sell time and expertise. Work is done for weeks or months before it is billed, and invoices may then sit unpaid for another month or two. A firm can be busy and profitable while its bank balance runs low, particularly when it is growing, carrying a large project or waiting on a few slow clients.
Added to that, professional firms regularly face lump-sum events that cash flow alone cannot fund: a partner retiring, a practice for sale down the road, the chance to buy the office the firm has leased for years, or a tax bill after a strong year.
How professional firms use secured finance
- Work in progress and debtors. Bridging the gap between doing the work and collecting the fee.
- Partner buyouts and succession. Paying out a retiring partner on the agreed date. See partner buyouts.
- Acquisitions. Buying another firm or a client book to grow. See business acquisitions.
- Office purchases. Owning the premises instead of renting, often through a related trust.
- Fit-outs. Refurbishing or expanding offices.
- Tax liabilities. Clearing income tax, GST or PAYG withholding after a strong year or a cash squeeze.
Security and structure
Professional firms are often structured with a service entity, a trading partnership or company, and principals who own homes or investment properties. The borrower is usually the entity using the funds, with principals and related trusts providing security and guarantees. Strata office suites in established business districts are generally acceptable security. Your accountant can advise on the most efficient structure.
Talk to a specialist about your firm’s funding need before a deadline forces a rushed decision.
Low doc options
Firms whose accounts are finalised late, often because the principals are too busy serving clients, can find bank applications stalled for weeks. Low doc secured loans rely mainly on the property and the exit, so the firm can proceed now and refinance with a bank once accounts are lodged.
An illustrative firm
Illustrative only. A mid-sized engineering consultancy has three partners; one is retiring and the partnership agreement sets a buyout figure payable within ninety days. The firm’s bank wants the current year’s accounts before lending. A second mortgage over one remaining partner’s home and a first mortgage over the firm’s strata office, held in a related trust, fund the buyout on time. Twelve months later, with accounts lodged and the firm trading well, the bank refinances and the private loans are repaid.
Managing work in progress
The best long-term fix for WIP-driven cash gaps is billing discipline: progress billing on long projects, upfront retainers where appropriate, prompt invoicing and firm follow-up. A secured loan buys time while those systems are improved, but the systems are what stop the gap reopening.
Common mistakes
- funding buyouts from working capital and running short on payroll
- acquiring a client book without testing client retention
- leaving tax provisions unfunded after a strong year
- relying on a single large client for a disproportionate share of fees
Exit strategies
Common exits include a bank refinance once accounts are current, collection of work in progress and debtors, the sale of an investment property, or profits from an acquired book over the term.
Questions firms ask
Can the loan be repaid early when a big fee is collected? Usually yes; check the early repayment terms in your documents.
Do lenders need to know about professional indemnity claims? Yes. Disclose any material claims or disputes up front; they rarely stop a secured loan but must be understood.
Can a new partner borrow to buy in? Yes. A secured loan over the incoming partner’s property can fund the buy-in, with the firm’s structure and the partner’s share explained clearly.
Agencies and creative firms
Marketing, design and digital agencies share the same pattern: staff costs every fortnight, large retainers or project fees paid in arrears, and occasional big clients who negotiate long payment terms. A secured facility behind a principal’s home can carry the business through a major project or the loss of a key client, giving time to rebuild the pipeline without cutting the team that wins the work.
Focus on clients, not cash flow
Professional firms do their best work when principals are not distracted by cash shortfalls. Tell us about the need, the timing, the property available and how you will repay, and a specialist will tell you how a secured loan can help. There is no credit check when you first enquire, your details stay with one team, and a short summary of the firm’s structure helps us move quickly. Discuss your firm’s needs.
Frequently asked questions
Why would a professional firm need secured finance?
Professional firms often carry large amounts of unbilled work and debtors, and face lump-sum costs such as partner buyouts, acquisitions or office purchases that exceed what cash flow alone can fund.
Can a partner buyout be funded with a home loan?
A second mortgage or equity release over the remaining partner's home is a common way to fund a buyout, with a bank refinance once the firm has traded under the new structure.
Can a consultancy borrow without up-to-date accounts?
Often yes. Low doc secured loans rely mainly on the property and the exit, which helps firms whose accounts are finalised late.
Can the loan buy our office?
Yes. A private first mortgage can settle an office purchase quickly, often followed by a bank refinance.
Prefer to start now? Enquire here
About 60 seconds. No credit check when you first enquire, and a secured lending specialist calls you back.