Fit-out finance · Professional services
Fit-out finance for professional services
Professional services finance is lending to accounting, legal, engineering, architecture and consulting firms, funding work in progress, office fit-outs, technology and partner buy-ins against fee income rather than physical assets.
How fit-out finance works for professional services
A professional office fit-out — partitioning, meeting rooms, joinery, acoustic treatment, reception and cabling — is a substantial spend that has no resale value and cannot be taken with you. Fit-out finance spreads it across the lease term instead of consuming the firm’s cash reserves, which in a partnership usually means preserving partner drawings. Match the term to the lease including exercised options, and get any landlord incentive contribution documented before we structure the facility.
The cash-flow pattern we plan around
Fortnightly salaries against work in progress that is billed weeks later and then paid on 30–60 day terms, with seasonal peaks around tax and reporting deadlines.
What professional services typically fund
- Funding work in progress and unbilled time
- Office fit-out and relocation
- Practice management software, servers and devices
- Partner buy-in or practice acquisition
- Hiring ahead of contracted work
Fit-out finance for professional services: the numbers
| Typical amounts | $20,000 – $1,500,000 |
|---|---|
| Term | 12–60 months |
| Indicative rates | 9.5% – 22% p.a. |
| Repayments | Monthly |
| Speed | 3–10 business days |
| Documents professional services usually need | ABN and two years of practice financials · Aged debtors and work-in-progress reports · Fit-out, equipment quote or partnership agreement |
Rates are indicative, change without notice and depend on the lender, product, asset, term and your credit profile at the time of application. They are not an offer of finance. Comparison rates, where shown, are true only for the example given.
Key terms
Professional services finance
Professional services finance is lending to fee-based firms such as accountants, lawyers, engineers and consultants, assessed on fee income, debtors and work in progress rather than on physical security.
Work in progress funding
Work in progress funding is finance that covers the cost of work performed but not yet invoiced, bridging the gap between paying staff and issuing the fee note that recovers their time.
What is fit-out finance?
Fit-out finance is business lending used to fund the construction or refurbishment of commercial premises, including joinery, flooring, lighting, signage and the equipment installed. It typically combines secured equipment finance with an unsecured component for fixed works.
Can leasehold improvements be financed?
Yes, but usually not as secured equipment finance, because fixed improvements attach to a building the borrower does not own. Lenders fund them through unsecured facilities or specialist fit-out products, priced above standard asset finance.
How does a lease term affect fit-out finance?
Lenders will not normally amortise fit-out debt beyond the remaining term of the premises lease, including exercisable options. A five-year lease generally means a fit-out loan of five years or less.
Questions from professional services
How do firms fund work in progress and slow-paying clients?
Invoice finance advances against issued fee invoices so fortnightly salaries are covered while clients take 30 to 60 days, and a line of credit funds work in progress before it is billed. Some lenders offer facilities specifically for accounting and legal firms against their fee income.
Can a partner buy-in or firm acquisition be financed?
Yes. Acquisition finance funds buying into a partnership or purchasing a fee base or whole firm against the firm’s recurring fees and goodwill, and several lenders have packages for accountants, lawyers and other professionals with high loan-to-value ratios. The firm’s financials and client retention are the key assessment points.
Can an office fit-out and technology be financed together?
Yes. Joinery, workstations, meeting rooms, IT hardware, software and phone systems can be funded under one fit-out and technology facility, with suppliers paid as the work progresses and the loan repaid over three to five years within the lease term.
Do professionals get special lending terms?
Often, yes. Accountants, lawyers, engineers and other professionals are well regarded by lenders because fee income is stable, and several offer lighter documentation, higher limits and sharper pricing on unsecured, acquisition and property finance. A broker knows which lenders include your profession.