Flexible PII funding suits a smaller law firm
Professional Indemnity Insurance can be one of the largest single payment obligations for a professional practice each year, so trying to secure the most cost-effective cover is the first hurdle for many firms. Once a suitable quotation is found, the next job is often to try and quickly secure funding for the premium as it can represent a large cash outlay.
United Trust Bank was asked to consider a loan facility for what was a small but well-managed 2-partner law firm which was looking to fund its full PII premium over an 18 month term. The firm had negotiated more favourable terms for 18 months of cover compared to the standard 12 months and wanted the repayment period to match the PII cover period.
The firm has been established for well over 30 years and generates a sizeable and stable level of fees each year, a large portion of which relates to litigation and complex criminal defence cases. They therefore prefer to hold on to their existing cash reserves where possible given their case completion cycle can occasionally be unpredictable.
We were able to provide the client with a quick decision at a highly competitive rate which gave them the assurance that their insurance provider would be paid on time and that they would not be diminishing their working capital reserves. Our payments team ensured that once we’d received the client’s signed documentation, we were able to release the funds the same day without delay.
Loan details for example:
Term: 18 months
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