Law Firm Lines of Credit for Established Practices
Law firms carry payroll, rent and case costs for months before clients pay. A revolving line sized to billed receivables and firm cash flow smooths that timing without bringing in outside equity. We prepare the firm's credit package and place it with banks and private credit funds that lend to professional practices.
A law firm line of credit is a revolving facility, usually sized off billed receivables, collection history and partner cash flow, and often supported by partner guarantees. Firms draw to cover payroll, rent and case costs between client payments, and repay as fees are collected.
Discuss your firm's line of credit
Tell us what you need, your timeline, and the context behind your transaction.
- A review of your business and capital needs
- Placement options aligned with your transaction
- A clear conversation about the next steps
Law firm lines of credit: what lenders generally look for
General market observations used by banks and private credit funds at this size.
| Benchmark | Typical range |
|---|---|
| Firm profile | Established practice, commonly 3+ years and $2M+ in annual fees |
| Sized off | Billed receivables, collection history and firm cash flow |
| Not used for sizing | Expected settlements, verdicts or unbilled case value |
| Support | Business lien and, commonly, partner guarantees |
| Pricing basis | Spread over SOFR or Prime, plus fees |
| Renewal | Typically 12–24 months |
Educational ranges only. Independent capital providers set eligibility, pricing and terms.
Who a law firm line fits
- Business, corporate and defense firms with steady hourly or flat-fee billing
- Firms whose payroll and rent run ahead of client payment terms
- Practices adding attorneys or opening an office
- Firms with clean billing and collection records
Outside what we place
- Case-by-case litigation funding or pre-settlement advances
- Lines sized off expected settlements or verdicts
- Newly formed firms without collection history
Illustrative example: a $750K line for a 20-attorney firm
A business litigation firm bills about $9M a year and carries $1.8M of receivables, with clients paying in 60–90 days. Payroll and rent run every two weeks regardless of collections.
A $750K revolving line, sized off billed receivables and supported by partner guarantees, covers the gap in slower months and is repaid as fees come in. Illustrative only — the capital provider sets the limit and terms.
Documents to prepare
- Two to three years of firm tax returns or financial statements
- Current accounts receivable aging and collection history
- Partner personal financial statements
- Practice-area mix and largest client concentrations
- Schedule of existing firm debt
Frequently Asked Questions
Common questions about law firm lines of credit.
Yes. Established firms with consistent billing and collections commonly qualify for revolving lines from banks and private credit providers, usually sized off billed receivables and cash flow and supported by partner guarantees.
Get a confidential placement review
Tell us what you need, your timeline, and the context behind your transaction.
- A review of your business and capital needs
- Placement options aligned with your transaction
- A clear conversation about the next steps
Tzortzis Capital evaluates and arranges capital placements. Independent capital providers determine eligibility, pricing, documentation and closing timing. Published ranges are indicative, not approvals or commitments.