Working capital loan provides relief from ‘Lock up’ for law firm

United Trust Bank’s Professional Lending team was approached by one of our valued broker partners with a proposal to provide a funding line for a well-established and successful law firm.

The firm provides an array of legal services but with quite a strong focus on complex litigation cases. One of the key challenges for firms with a focus on these types of cases is an increase in their debtors and “lock up”. Although this can be an indicator of growth, it can also mean cash from completed cases tends to be received less frequently – for this firm it’s not unusual for them to wait a year or two for payment to come though. This can obviously lead to short-term cash flow pressure, as any practice with substantial lock-up days can get to a point where traditional working capital facilities, such as a bank overdraft, can become overburdened. Fortunately, our working capital loans can provide a quick and essential addition to traditional lines of funding.

In this example, the financial information provided by the broker indicated that the business was continuing to perform well, the Partners were providing personal security and the rationale for the request was entirely reasonable. As such, the Bank was quickly able to provide an approval for loan amount and term requested.


Loan size – £100,000

Term – 18 months