Law firms will feel the heat in July…
Law firms in Yorkshire will be feeling the heat in the coming weeks as partner tax payments are due to be paid in July. In the past, firms would turn to short-term unsecured lenders to bridge the funding shortfall, but this may no longer be an option with the legal sector facing volatile times. The risk to lenders has therefore increased, particularly in Yorkshire where mergers, acquisitions, and administrations have been widespread. To counter the risk lenders have increased rates, but with many firms finding cash flow a challenge, they will have to look for alternative options come July. Banks will also be reluctant to allow short term lenders to take security over law firms. They recognise that unless their security is supported…
