Finance for practice fit-out and technology: including software

Yes. Software is financeable, including the implementation cost, licensing fees, and associated professional services costs for setup and training. The most common structure is a finance lease, where the practice makes monthly payments over an agreed term and the lessor retains technical ownership of the software licence throughout. This works for both on-premise software (where there is a large upfront cost) and cloud-based platforms with significant implementation or customisation expenditure. The key qualification question is whether the software is being purchased outright or subscribed to monthly: large upfront or annual licence costs can be financed; ongoing monthly subscription costs typically cannot as a standalone facility, though they can sometimes sit within a broader technology finance package.

The answer depends on whether you want to own the fit-out assets at the end of the term and what the residual value of those assets is likely to be. Hire purchase transfers ownership to the practice at the end of the term: you own the desks, partitions, and meeting room equipment outright, but their value after five years is typically close to zero. A finance lease avoids this: the payments match the useful life of the fit-out, and you return or write off the assets at the end rather than owning a depreciated balance sheet entry. For most professional practice fit-outs, a finance lease is the more rational structure, but the accounting treatment under FRS 102 or IFRS 16 needs to be considered alongside the financing decision. We will flag this for your accountant to review.

It can. Where fit-out works require landlord consent and the assets are physically attached to the premises, the lender's security position is affected: assets attached to a leasehold property are more difficult to repossess than movable equipment. Some lenders will require an unsecured structure or a personal guarantee where fit-out assets cannot be easily separated from the building. We will be clear with you about which lenders can offer secured versus unsecured terms for your specific fit-out before you commit to a structure.

There is no fixed upper limit. Smaller technology refreshes of £10,000 to £30,000 are typically arranged as unsecured business loans or asset finance in a matter of days. Larger fit-outs and full technology platform implementations of £50,000 to £500,000 are arranged as structured asset finance facilities with a more detailed lender assessment. For very large projects, a combination of asset finance (for physical equipment) and an unsecured business loan (for software and professional services costs) is sometimes the most efficient structure.

Yes. Practice management and case management system implementations (including platforms like IRIS, Clio, Leap, Xero, or bespoke legal or accountancy software) are among the most common technology finance requests we handle for professional services firms. The implementation cost, data migration, training, and first-year licensing are all includeable in the facility. The ongoing annual subscription thereafter is a revenue cost rather than a capital cost and sits outside the finance facility.