Business line of credit · Professional services
Business line of credit 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 a business line of credit works for professional services
A revolving limit is the natural fit for a WIP-driven business. Draw during the months when unbilled work is high, repay as fee notes are issued and settled, and hold the headroom for the next cycle. For accounting firms this maps neatly onto the tax season pattern: heavy staff cost from July, billing concentrated later. Interest applies only to the drawn balance, which suits a facility that should sit at zero for part of the year and be well used for the rest.
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
Business line of credit for professional services: the numbers
| Typical amounts | $10,000 – $500,000 |
|---|---|
| Term | 6–24 months |
| Indicative rates | 11.5% – 24% p.a. |
| Repayments | Weekly or monthly minimums on the drawn balance |
| Speed | 1–3 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 shown are indicative ranges observed across our lender panel for the period stated. They are not an offer or quote. Your rate depends on your business, the lender, the amount, the term and the security offered. The lender makes the final credit decision.
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 a business line of credit?
A business line of credit is a revolving facility with a pre-approved limit. You borrow only what you need, pay interest only on the drawn balance and can redraw repaid funds without reapplying.
Line of credit vs business loan
A business loan pays a lump sum repaid on a fixed schedule; a line of credit is a flexible limit drawn as needed. Loans suit one-off purchases, lines of credit suit fluctuating working-capital needs.