A profitable legal practice needed funding to expand and develop tech capabilities. Banks kept declining - not because of poor performance, but because they didn't understand how law firms operate. Here's how Risecap secured funding at 11.6% when lenders initially quoted 14%.

CLIENT SNAPSHOT

Contract solicitors | £3.7m annual revenue | Strong profitability
A lean legal practice with three directors, operating on a contract solicitor model with high margins and low overhead. Over £1m EBITDA, positive net assets, and exceptionally low business risk due to their operating model.

THE CHALLENGE

The firm was profitable and stable, but banks kept declining. The problem: the three directors drew substantial salaries - completely normal for law firm structures - but this meant the business didn't meet traditional bank cash flow ratios. Banks saw "cash leaving the business," not "profitable partners taking earned income."

The directors had never borrowed before and needed funding for expansion and tech development.

WHY THEY CAME TO RISECAP

• Fractional CFO spotted Tony's LinkedIn content and made a direct referral
• First-time borrowers who needed education on the entire process
• Frustrated by banks who couldn't see past standard metrics
• Wanted flexibility for early repayment as they planned to clear the debt quickly

This started with a LinkedIn message from a CFO they'd never met - purely based on how Risecap's content came across.

OUR APPROACH

Traditional banks couldn't see past standard cash flow ratios. We focused on professional services lenders who understand law firm structures - they assess total profitability, not just what sits in business accounts.

Key strengths we highlighted:

• £1m+ EBITDA with lean, low-risk operations
• Contractor model = predictable revenue, minimal fixed costs
• Strong client relationships and recurring work
• The developments are set to double their revenue

Lenders initially quoted 14%. We negotiated down to 11.6% by properly positioning the business model and demonstrating the actual operational risk.

THE IMPACT

• £250,000 growth capital over 5 years
• 11.6% annual rate (negotiated down from 14%)
• Early repayment and overpayment flexibility built in
• Personal guarantees required (standard for this structure)
• Funded within 3 weeks

The funding is now supporting expansion plans and technology development, with the flexibility to repay early giving directors control over their timeline.

"We've never met, I picked you out from LinkedIn, and really appreciate you acted the same way you came across in your posts."

• Fractional CFO (referrer)

The directors were so pleased they've offered to serve as references - unusual in professional services where discretion is typically preferred.

TAKEAWAY

Professional services firms often don't fit traditional bank boxes. The right funding partner understands your operating model and can find lenders who see profitability, not just cash flow ratios.

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