Invoice finance for legal firms

• Cash flow challenge: Law firms often face long payment terms and delayed disbursement recovery while covering ongoing operational and staffing costs.

• Perfect for: Legal practices, solicitors, and compliance firms managing billed work, case settlements, and disbursement payments.

Novuna helps legal firms access fast, flexible funding through invoice financing, either through our award-winning in-house service or by comparing the market providers you have the best deal for your situation.

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How invoice finance supports law firms

Legal practices often deal with long credit terms, deferred billing, and complex disbursement arrangements. Invoice finance provides consistent cash flow that aligns with your billing structure and regulatory requirements.

It’s especially beneficial for:

• Solicitors managing client invoices or billed hours awaiting settlement.

• Law firms providing ongoing work under extended client payment terms.

• Disbursement-heavy practices handling litigation or personal injury claims.

• Compliance and consultancy firms billing corporate clients on fixed or retainer terms.

Benefits of invoice finance for legal practices

• Fast access to cash: Up to 90% of invoice value available within 48 hours.

• Predictable cash flow: Manage payroll, overheads, and case costs without delay.

• No new borrowing: Release funds already owed to your business.

• Flexible funding: Facilities scale with your invoice volume and client base.

• Confidential facility: Use invoice discounting to keep arrangements private from clients.

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Invoice finance vs. traditional education loans

Invoice finance vs. asset-based lending for engineering firms

Both invoice finance and asset based lending improve liquidity, but they work differently. Here’s a simple breakdown to help you decide:

• Invoice finance releases cash from outstanding invoices, ideal for contract-based working capital.

• Asset based lending uses machinery, stock, or invoices as security, ideal for larger facilities or growth projects.

• Invoice factoring adds credit control support, so collections are handled by your finance provider.

• Invoice discounting keeps collections confidential, letting you maintain client relationships.

Combining invoice finance with other legal funding solutions

Invoice finance integrates seamlessly with other funding tools to give your legal practice greater flexibility and financial control.

You can:

• Use disbursement funding to manage case-related costs such as medical reports, court fees, or expert witnesses.

• Combine with working capital loans to cover payroll or practice expansion.

• Integrate cash flow management to forecast billing and funding needs more accurately.

• Explore supply chain finance to pay third-party suppliers promptly and strengthen relationships.

How Novuna Business Cash Flow can help

We’ve supported law firms and legal service providers across the UK with finance designed to smooth cash flow and fund continued growth.

Speak to our experts today and we will help you find a great fit for your situation.