September 30, 2020

£300k of Working Capital to Help a Law Firm Grow


Loan Amount: £300k

Loan Type: Working capital for growth

Security: First ranking debenture over the business and personal guarantee supported by a second charge over residential property.

Reparo provided £300k to help a law firm reduce pressure on cash flow and deploy working capital towards growth.

The Challenge

The law firm provides conveyancing and advice on a range of property matters. In a period of fast growth, the company secured a range of loans to fuel the demand.

This led to high monthly repayments which put pressure on cash flow and hampered growth – including investments in staffing, infrastructure and marketing.

A further issue was an extensive work in progress figure driven by fees for conveyancing being paid at the end of a lengthy legal process. At the time of the loan, the firm had around £1m in WIP.

The firm was struggling to re-finance because traditional lenders weren’t willing to engage in a relatively complicated restructuring process.

Reparo Approach

Reparo took a different view to traditional lenders and were able to sign off a £300k loan quickly.

Several factors were driving the decision:

  • The business was run by proven and competent entrepreneurs who had a long track record of success.
  • The management accounts demonstrated exceptional growth and the firm had a strong reputation – revenue wasn’t going to dry up.
  • There was a solid three-year plan in place with a detailed financial analysis that demonstrated how the company would manage repayments.
  • The Reparo team has extensive experience lending into the legal sector.
  • Having a debenture over the company enabled Reparo to advance more monies than if the security was property alone.


The loan was completed quickly on 36-month terms, and the client freed up considerable working capital to make the necessary investments.

Matthew Turner, Business Development Manager at Huxley Corporate Finance, worked closely wit Reparo on the deal and said:

“Reparo were incredibly easy to work with on this deal. They took the time to visit the client and understand their business. Within 24 hours were agreed to move forward with the loan and they were quick to get the deal processed.”

Jason Cossey, Relationship Manager at Reparo Finance, said:

“We’ve completed many deals with law firms we know what to look for in a business proposition. This firm ticked all the boxes of a well-run operation. The working capital challenges were driven by fast growth and a business model which meant payments were often a long time after work completed – we could see that debt consolidation was a sensible move to free up working capital to drive the growth.”

To discuss a loan please get in touch on contact@reparofinance.co.uk or 0161 451 5710