Do you support law firms with high legal aid exposure or longer panel payment terms?

Yes. UK law firms with high legal aid exposure or extended panel payment cycles (60, 90 or 120 days) routinely use working capital facilities to bridge the gap between case completion and payment receipt. The right product depends on whether the gap is structural (every month) or episodic (occasional).

For structural cashflow gaps, the most efficient route is invoice finance secured against the legal aid debtor book or insurer panel receivables. Specialist UK invoice finance providers like Aldermore, Time Finance and Ultimate Finance understand legal aid timing and underwrite around it. The advance is typically 70% to 85% of approved invoices, drawn down as work is completed and billed, repaid as the LAA or panel insurer pays out.

For episodic gaps, a flexi-loan or revolving facility is more efficient than a fixed term loan: you draw what you need when payment is delayed, repay as receipts arrive, and only pay interest on the drawn balance. iwoca's flexi-loan structure suits this pattern well for tickets up to £500,000. For larger £250k+ rotating facilities, banks like Allica Bank and Shawbrook offer revolving credit facilities priced 3 to 5 percentage points above base rate.

Lender concerns specific to legal aid. Concentration risk: where 60%+ of the debtor book is the LAA or a single panel insurer, lenders discount affordability. Settlement risk: lenders distinguish between approved invoices (paid to a tight schedule) and disputed or under-review work (slower and unpredictable). Long-tail receivables (12+ months from billing) are usually excluded from the funded balance.

See are there unsecured working capital options for law firms or is security required and our professional services sector page.