Term Loans for Law Firms
Some practice investments need predictable financing. Technology infrastructure, office expansion, or firm improvements deserve fixed monthly payments you can plan around. When budget certainty matters, term loans provide clarity.
How much funding do you need?
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When Term Loans Work for Law Firms
Term loans excel for substantial practice investments where payment predictability matters more than draw flexibility. Fixed monthly payments enable precise budgeting.
Fixed Payment Budgeting
A $150,000 term loan at 14% for 60 months means $3,500 monthly. This predictability enables confident practice planning.
Technology Investment
Major technology infrastructure that will serve your firm for years deserves appropriate financing terms.
Total Cost Clarity
Interest rate and amortization show exact total repayment from day one.
Faster Than SBA
Term loans fund in 1-4 weeks versus 60-90 days for SBA. Rates higher but speed may matter.
When Predictable Payments Matter
Major firm investments often demand fixed monthly obligations.
Variable Payment Uncertainty
MCA payments vary with deposits. Unpredictable costs make practice planning difficult.
Major Investment Scale
Technology infrastructure, office buildout, or firm improvements require substantial capital.
Long-Term Asset Match
Technology lasting 5+ years should not be financed over 12 months.
Budget Integration
Practice budgets require known costs. Variable payments complicate planning.
SBA Timeline
SBA offers best rates but takes 60-90 days. Term loans bridge when time matters.
Partnership Investment
Partner contribution or firm investment requiring fixed structure.
Law Firm Term Loan Process
Get fixed payment financing with clear terms.
Application
Complete application with firm information and use of funds.
15 minutes
Documentation
Provide bank statements and financial information.
Upload documents
Underwriting
We evaluate revenue, time in practice, and repayment capacity.
7-21 days
Funding
Accept terms with fixed payment schedule. Funds deposited.
1-3 days
Structured Financing for Firm Investments
Term loans provide predictable monthly payments over extended periods. When your law firm needs substantial capital with budget certainty, term loans deliver clear costs.
Fixed Monthly Payments
Same payment every month. Know exactly what you owe.
Extended Terms
Terms from 1-7 years spread payments to manageable levels.
Clear Total Cost
Interest rate and schedule show exact total from the start.
Build Business Credit
Regular payments build business credit profile.
Faster Than SBA
Fund in 1-4 weeks versus 60-90 days for SBA.
Legal Understanding
We evaluate law firms based on fee collection patterns.
Law Firm Term Loan Applications
Common situations where predictable financing serves legal practices.
Technology Infrastructure
Servers, case management, and firm technology.
Typical funding: $50K-$150K
Office Expansion
New space buildout and equipment.
Typical funding: $75K-$250K
Practice Renovation
Office renovation and modernization.
Typical funding: $40K-$150K
Partner Investment
Capital for partnership contribution.
Typical funding: $75K-$300K
Marketing Investment
Major client acquisition campaign.
Typical funding: $30K-$100K
Working Capital
Substantial working capital with fixed structure.
Typical funding: $50K-$200K
Term Loans vs. Alternative Financing
Understanding when fixed payments make sense.
| Feature | Term Loan | MCA | SBA Loan |
|---|---|---|---|
| Payment Structure | Fixed monthly | Daily/weekly | Fixed monthly |
| Term | 1-7 years | 6-18 months | 10 years |
| Total Cost | Clear from start | Factor rate | Clear from start |
| Typical Rate | 12-20% APR | 25-45% effective | 9-11% APR |
| Predictability | Exact amount known | Varies | Exact amount |
| Time to Fund | 1-4 weeks | 24-72 hours | 60-90 days |
| Best For | Mid-range needs | Emergencies | Major investments |
| Documentation | Moderate | Light | Extensive |
Term Loan Requirements
What qualifies law firms for fixed payment loans.
Practice History
Established law firm with revenue track record.
1-2+ years preferred
Revenue Level
Sufficient revenue to support fixed monthly payments.
$300,000+ annual
Attorney Credit
Term loans require decent personal credit from attorneys.
620+ preferred
Bank Statements
Firm bank account showing fee patterns.
4-6 months statements
Fee Collection
Reasonable consistency in fee collection.
Consistent patterns
Cash Flow Capacity
Ability to maintain payments alongside operations.
Adequate cash flow
Strong fee collection and consistent patterns support term loan qualification.
Real Results
Downtown Legal Group
Business Law, Texas
The Challenge
Downtown needed $110,000 for technology upgrade and office renovation. MCA quotes showed variable payments making budgeting impossible.
The Solution
We structured 48-month term loan for $110,000 at 15% with fixed monthly payments of $3,060.
The Result
Technology upgraded. Office renovated. Fixed payments incorporated into monthly budget. Firm productivity improved 25%.
“MCA payments varied unpredictably. Fixed payments mean I know exactly what we owe each month. Much easier to run the firm.”
Law Firm Term Loan Data
Statistics on term lending for legal practices.
Term Loan Advantages for Law Firms
Why fixed payment financing works for legal practices.
Budget Certainty
Build financing costs into firm budget with precision.
Lower Than MCA
Term loans typically cost less than MCA products.
Clear Payoff Date
Know exactly when financing will be paid off.
Credit Building
Regular payments build business credit.
Faster Than SBA
When you cannot wait 60-90 days for SBA.
Refinancing Path
Strong payment history may enable SBA refinancing.