# Professional Services Business Loans

> Professional service firms sell time and expertise, so their cash is tied up in unbilled hours, receivables, and payroll long before clients pay. Hoss Capital matches law firms, accountants, consultants, and agencies with funding partners who lend against steady fee revenue rather than hard assets.

## Key takeaways
- Service firms are profitable on paper yet routinely cash-tight, because revenue arrives in arrears on net-30 to net-90 terms while payroll and rent come due every cycle.
- A business line of credit is usually the best fit — draw to cover payroll between client payments and repay as invoices clear.
- Funding is cash-flow based, underwritten on revenue, deposits, and receivables rather than hard collateral, so firms without equipment can qualify.
- The sub-segment shapes the product: recurring gaps favor a line of credit, while a one-time push like a buyout or new office favors a term loan.

## Funding built for firms that bill for time

Professional service firms — law practices, accounting and tax shops,
consultancies, and creative or marketing agencies — share a financial profile
unlike product businesses. Revenue is strong and recurring, but it arrives in
arrears. You deliver the work, send the invoice, and then wait while staff
salaries, rent, software, and benefits go out every cycle. The result is a firm
that's profitable on paper yet routinely cash-tight.

### The options that fit service firms best

- **Business line of credit** — the workhorse for these firms. Draw to make
  payroll or cover a slow month, then repay as client invoices clear. You only
  pay for what you use.
- **Working capital / term loans** — fund a clear one-time investment: opening a
  second office, a partner buyout, lateral hires, or a practice acquisition.
- **Invoice factoring** — for firms billing large, creditworthy companies on
  net-60 or net-90 terms, advance most of the invoice now instead of waiting.

### Cash-flow dynamics by sub-segment

Not every firm bills the same way. **Law firms** range from steady hourly or
retainer practices to contingency shops where cash can be locked up for years
until a case settles. **Accounting firms** see sharp seasonality around tax
deadlines and need cash to staff up for the busy season. **Consultancies and
agencies** live on project milestones and retainers, often fronting media spend
or contractor costs before the client reimburses. Each of these points to a
different product — recurring gaps favor a line of credit, while a single big
push favors a term loan.

### Why match through Hoss Capital

Generalist lenders often want collateral a service firm simply doesn't have.
Hoss Capital routes your profile to partners that underwrite on cash flow and
receivables, so you're matched with lenders who understand how a fee-based
practice actually earns and gets paid.

---
Canonical: https://hoss-capital.pages.dev/industries/professional-services/