Law Firm Loans: 6 Best Business Loans For Lawyers

If you are new to business financing and/or don’t have the time to research and apply for different kinds of loans, BusinessLoans.com can help. With this online loan marketplace, you can apply for multiple business loans with a single application. BusinessLoans.com will take your loan requirements and your business’s credentials (credit score, time in business, revenues, etc.) and use that information to match you with business loan options that your firm qualifies for.

BusinessLoans.com’s lending network includes numerous types of financing, such as short-term loans, SBA loans, lines of credit, and others.

Terms and fees vary widely due to the multiple law firm financing types and different lenders that belong to the BusinessLoans.com network.

There are no hard and fast lending requirements to apply to BusinessLoans.com. Generally, the higher your credit score is, and the longer you’ve been in business, the more loan options will be available to you.

SBA loans are highly coveted loans for any small business, including lawyers, since they have low-interest rates and long repayment terms. However, they can be somewhat difficult to qualify for and apply for. SmartBiz is a service that connects qualified businesses with SBA loans up to $350K, simplifying and speeding up the SBA loan application process. These SBA 7(a) loans are for established law firms that need a modest-sized loan for working capital or debt refinancing.

If you don’t qualify for a bank loan or need faster financing, SmartBiz also makes it easy to apply for a bank term loan or custom financing products, such as lines of credit or invoice financing. Non-SBA SmartBiz loans are typically deposited within three to seven days, compared to two to six weeks with SBA loans (though some SBA loans are funded as quickly as seven days).

SBA loans from banks in the SmartBiz network have interest rates of 10.75% – 11.75% (the Prime rate, plus 2.75-3.75%). Interest rates for other SmartBiz financing products start at 6.99% but could potentially be much higher.

To qualify for a SBA loan through SmartBiz, you’ll need to have been in business for at least two years and be profitable, with good cash flow and good credit (the minimum acceptable credit score is 650).

Live Oak Bank is a bank specializing in small business loans. Though Live Oak is a bank, it has a lot in common with alternative lenders, as it provides online lending services for small businesses and doesn’t require excellent credit.

Additionally, LOB is one of the largest originators of SBA loans, including large SBA loans up to $15 million, which are suitable for commercial construction or law firm acquisition. Live Oak’s law firm business loan offerings include SBA 7(a) loans up to $5 million and SBA 504 loans up to $15 million, as well as non-SBA long-term loans ranging from $150,000 to $7.5 million.

Rates and fees vary depending on the loan type and amount. They may be fixed or variable. Overall, these rates are lower than what you would pay with an online lender. Live Oak Bank loans do include an origination fee up to 2% on term loans (paid directly to Live Oak Bank) or 1.5 to 2.8% on an SBA loan (paid to the SBA).

Eligible applicants will have at least 3 years in business, $250,000+ in annual business revenues, and a credit score of 680 or higher.

OnDeck is one of the top online small business lenders, period. Though you can’t get a very large loan from OnDeck, it works great if you need a fast short-term loan or line of credit for your law firm. OnDeck loan might be the perfect option if your law firm needs a quick cash infusion for payroll or working capital purposes.

This prolific lender is known for its transparency, simple application, and fast funding that can deliver funds into your account as quickly as the same business day that you’re approved (on loans or line of credit draws up to $25K). OnDeck line of credit holders also have an “instant funding” option on draws up to $10K.

Applying for OnDeck starts with a simple 10-minute online application. If you are preapproved for a loan offer, OnDeck will reach out for more information before funding your loan. All of this typically takes less than 24 hours.

OnDeck APRs for OnDeck short-term loans start at 29.9%, but the average APR is 62.1%. Term lengths are up to 24 months, and payments are required on a daily or weekly basis.

With an OnDeck LOC, term lengths are 12 months per draw, there are no draw fees, but you will typically have a $20/month maintenance fee. LOC APRs start at 35.9%, but the average APR for OnDeck lines of credit is 48.9%.

To qualify for an OnDeck loan, you’ll need 12 months in business, a credit score of 625, and $100,000 in annual revenues. You also need to have a business bank account.

Credibly is an online lender that offers small business loans for businesses with bad credit. Credibly has multiple types of short-term and medium-term business loans available, as well as merchant cash advances and invoice factoring, which can be a good financing solution for attorneys with unpaid invoices. You can even apply for an SBA loan with Credibly.

Credibly’s fees can be on the high side, but there are discounts for repaying early, as well as low credit score requirements and longer repayment terms compared to a lot of other short-term online lenders. Credibly is also known for its transparent pricing and fast service. The entire time-to-funding can be as quick as 48 hours after approval but can take as long as a few days.

Credibly has numerous financing products available, so terms and fees vary by loan type. Generally speaking, maximum term lengths are 18 or 24 months, and factor/interest rates start at 1.11.

Depending on the loan type, Credibly will accept credit scores as low as 500. Most Credibly lending products require 6 months in business and business revenues of at least $15K/month. Business expansion loans and SBA loans require scores in the 600s and a lengthier time in business.

Fundbox offers the most accessible lines of credit for attorneys, even newer law firms, and lawyers without excellent credit. If fast, easy, and ongoing access to cash is what you’re looking for, Fundbox is your answer. Fundbox also offers tools that make it easier to pay your vendors and predict your firm’s cash flow.

Fundbox has a quick, simple application on its website. The Fundbox application is fully automated, as the algorithm uses AI to determine your eligibility. If approved, you can start withdrawing funds within minutes, and they should hit your bank account the following business day. You can also apply to Fundbox and draw funds using the Fundbox app for iPhone or Android.

Note that Fundbox does not lend to lawyers collecting funds for any purpose other than to pay fees owed for services provided by the firm. For example, Fundbox won’t lend to lawyers involved in debt collection.

Fundbox revolving lines of credit have a term of 12 or 24 weeks and a borrowing fee starting at 4.66% or 8.99%, depending on your term length (draws with 24-week terms have a higher fee). You will be able to choose a term length and preview your weekly payment amount, including fees, before you make a draw.

Fundbox requires a credit score of 625, as well as $100,000 in annual business revenue and, ideally, six months in business.