Professional services finance
Finance for consultancies, agencies, IT services, accounting, legal, engineering and other professional firms, through a panel of 100+ bank, non-bank and private lenders.
- Working capital and lock-up
- Acquisitions and partner buy-ins
- No obligation
In a nutshell
Professional services firms have few physical assets, so lenders focus on cash flow and recurring revenue rather than security. Non-bank lenders offer unsecured loans and lines of credit, assessed mainly on your bank statements, for working capital and the gap while clients pay. For buying a firm or a partner's share, some banks lend against the firm's value, as a multiple of its earnings. Depending on the lender, decisions on unsecured finance can be as quick as a few hours.
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AFCA memberPanel of 100+ bank, non-bank and private lendersAt a glance
- Working capital
- Unsecured loans and lines of credit
- Waiting on clients
- Invoice finance or a line of credit
- Buying a firm
- Cash flow lending on the firm's earnings
- Security
- Often none, or a general security agreement
- Decision time
- Hours to weeks
- Interest rates
- Vary by lender and business
How professional services firms use finance
Consultancies, agencies, IT service providers, and accounting, legal and engineering firms sell their people's time and expertise. Their biggest cost is wages, paid every week or fortnight, while clients often pay 30 to 60 days after invoicing, and sometimes much later for project work. Growth makes the gap bigger, because new staff start costing money months before their work is paid for.
Because these firms own few physical assets, lenders focus on cash flow, recurring revenue and the quality of clients rather than security.
Working capital and lock-up
Lock-up is the money tied up in work in progress and unpaid invoices. A line of credit or overdraft lets you draw for wages and costs and repay as clients pay. If you invoice larger clients on account, invoice finance advances cash against those invoices.
For one-off needs such as hiring ahead of a big contract, a marketing push or a new office, an unsecured business loan is often the simplest option.
Buying a firm, a client book or a partner's share
Professional services businesses change hands often, through acquisitions, mergers, partner buy-ins and retirements. Some banks offer cash flow lending against the earnings of the firm, usually as a multiple of its EBITDA, for established firms with strong recurring revenue. Smaller deals can be funded by non-bank lenders, sometimes alongside a vendor finance arrangement with the seller.
Bank or non-bank?
Banks usually cost less, but they want full financials and often property or a general security agreement, and take longer to decide. Non-bank lenders decide faster, need less paperwork and offer unsecured options, at a higher cost. Many firms that bank with a major bank still use a non-bank lender when speed or flexibility matters. Our guide to bank vs non-bank business loans explains the trade-off.
What lenders look at
- regular revenue in your bank statements, and how much of it recurs
- who your clients are and how concentrated your revenue is
- your work in progress and aged debtors
- profits and the owners' salaries, for larger or acquisition lending
- any ATO debt and how it's being managed
Eligibility and documents
What lenders usually look for
- An active ABN, and often GST registration
- Trading history, from about 6 months with some non-bank lenders to 2 years or more with banks
- Regular revenue in your business bank statements
- For acquisitions, the target firm's financials and recurring revenue
- A credit history the lender is comfortable with
Documents you may need
- Identification for each director or partner
- Business bank statements, usually 6 to 12 months
- Aged debtors and work in progress reports, for invoice finance or larger facilities
- For acquisitions or bank lending, financial statements, tax returns and the sale agreement
Requirements vary by lender. All lending is subject to each lender's credit criteria and assessment.
What lenders publish for professional services firms
Here's a selection of what lenders publish about products professional services firms use. It isn't a full list of lenders or a ranking.
- Lumi's business loans and lines of credit go up to $1 million, mostly unsecured up to $300,000, for businesses trading 6 months or more with $50,000 or more in annual revenue. Profile →
- OnDeck's unsecured small business loans go up to $300,000, for businesses trading at least 1 year with $100,000 or more in annual revenue, using 6 months of digital bank statements. Profile →
- Liberty's business line of credit runs from $50,000 to $2 million, with interest-only monthly repayments and no minimum time in business. Profile →
- Macquarie lends to accounting and financial advice firms at up to 3.75 times normalised EBITDA, typically from $1 million, for firms with at least $1.5 million of recurring revenue. For law firms it publishes up to 2.5 times EBITDA, and for architects, engineers and surveyors up to 2 times EBITDA. Profile →
A sample of lenders, as published by each lender, checked 23 October 2026.
Which finance fits which need?
Wages and costs while clients pay
- Usual finance option
- Line of credit or invoice finance
- Why it fits
- Covers the gap between doing the work and being paid
Hiring, marketing or a new office
- Usual finance option
- Unsecured business loan
- Why it fits
- A lump sum, assessed mainly on cash flow
Buying a firm or client book
- Usual finance option
- Acquisition or cash flow lending
- Why it fits
- Lent against the earnings of the business you're buying
Buying out or into a partnership
- Usual finance option
- Cash flow lending or a business loan
- Why it fits
- Funds a change in ownership without selling assets
An ATO debt
- Usual finance option
- Business loan
- Why it fits
- Clears the debt and replaces it with set repayments
| Usual finance option | Why it fits | |
|---|---|---|
| Wages and costs while clients pay | Line of credit or invoice finance | Covers the gap between doing the work and being paid |
| Hiring, marketing or a new office | Unsecured business loan | A lump sum, assessed mainly on cash flow |
| Buying a firm or client book | Acquisition or cash flow lending | Lent against the earnings of the business you're buying |
| Buying out or into a partnership | Cash flow lending or a business loan | Funds a change in ownership without selling assets |
| An ATO debt | Business loan | Clears the debt and replaces it with set repayments |
Related guides
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FAQs
Questions about professional services finance
Yes. Many non-bank lenders offer unsecured loans and lines of credit to service businesses, assessed mainly on revenue in your bank statements, usually with a personal guarantee from the directors.
Lock-up is the cash tied up in work in progress and unpaid invoices. Firms use a line of credit, an overdraft or invoice finance to cover wages and costs while they wait, and tighter billing to reduce it.
Yes. Some banks lend against the earnings of the firm you're buying. Macquarie, for example, publishes cash flow lending for accounting firms of up to 3.75 times normalised EBITDA. Non-bank lenders can help with smaller acquisitions.
Often, yes. Banks and specialist lenders fund partner buy-ins and changes in equity ownership, usually based on the firm's profits and your share of them.
Yes, if they invoice other businesses on credit terms. Lenders look at who your clients are and how reliably they pay. Retainers and milestone billing can make it more complex.
Depending on the lender, decisions on unsecured loans and lines of credit can be as quick as a few hours. Acquisition and bank lending usually takes a few weeks.
No. There's no cost to you for our service. We're paid by the lender when your finance settles, and there's no obligation to proceed.
This page is general information only and isn't credit, tax or financial advice. Lender details are taken from each lender's published information, checked 23 October 2026, and can change. All lending is subject to each lender's credit criteria and assessment.