How Do Accountancy Practices Fund Growth and Acquisitions?

Why accountancy practices fund differently

An accountancy practice has recurring fee income but few hard assets, so funding a fee-block acquisition or a growth push relies on the strength and stickiness of that recurring revenue rather than equipment to secure against. With little in the way of machinery or property to secure against, the funding question is not 'what asset do we buy?' but 'how do we bridge the gap between spending and being paid?'. That points toward working-capital facilities and unsecured lending rather than asset finance.

The facility that usually fits

For this trade the natural route is business loagainst recurring fees. It is designed for the recurring, temporary gaps that asset-light businesses live with, and — in the case of invoice finance — it grows with the invoices as the business grows. Credicorp's unsecured lending to limited companies carries no personal guarantee, which matters when there is no asset to pledge. Read the underlying guide before committing.

Size it against real figures

Model the gap with our return on borrowing calculator and the using a loan for growth on Learn. For asset-light firms the key number is how long cash is tied up between paying costs and collecting fees — get that right and the facility sizes itself.

How lenders view the trade

Our sector page for accountancy practices sets out what a lender looks at when there are few hard assets, and the general answers on whether your sector affects borrowing and what lenders check give the wider picture. When ready, you can apply. General information, not an offer of finance.