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The PII Renewal Season: Borrowing for PII

The PII Renewal Season: Borrowing for PII Case Study

PII is one of the biggest financial outlays a law firm will make each year and because it is a compulsory purchase, they cannot operate without it.

Traditionally, PII was payable every 1 October and although the rules have now changed allowing firms to renew PII at any other time of the year, many firms have decided it is easier to keep this renewal date. However, it does mean the bill for it can come just weeks after partners have had to pay their own tax bill, placing a further strain on cash flow.

As it is one of the largest expenditures of the year, law firms may not always have the necessary funds readily available to pay for PII, so they may want assistance from a specialist lender that can develop special loan options and repayment plans.


CASE STUDY - SGH Martineau LLP
SGH Martineau LLP is a full service law firm which was formed in 2011 following the merger of Sprecher Grier Halberstam LLP and Martineau.

It has a team of 51 partners, more than 125 fee earners and around 120 support staff and specialises in the banking, education, energy, investment fund and private client sectors.

The Top 100 firm has offices in Birmingham, London and Brussels.

Finance Director Francis Drasar has been with the business for more than 12 years.
He said: "Wesleyan Bank is a very well regarded as a provider of short-term funding in the legal sector.

"It has experience of the sector and a level of insight that other providers do not.

"One of the key points for SGH Martineau is the Bank's accessibility. I have built up a very good working relationship with our account director over the years.

"I always deal with the same person and he is always very easy to get hold of to talk things through.

"Our account director has also introduced the firm's managing partner and myself to the bank's managing director and credit manager.

"That has proved particularly helpful to us as it has helped us understand their approach and emphasised that we are a valued customer to the bank."

Wesleyan Bank Commercial Finance is a specialist in providing law firms with tailored funding solutions. Its dedicated team of account handlers can give expert advice on funding across all the main areas.

Francis Drasar said: "We have taken short-term funding from Wesleyan Bank which is repaid within one year for requirements including Professional Indemnity Insurance, tax payments and Practice Certificates.

"There are times when we need to move very quickly. Missing a PII or tax payment is not an option, but often we only know the final amount payable a relatively short period before we need to make the payment.

"What distinguished Wesleyan Bank from other providers is that they really understand the timescales and the importance of the deadlines that we have to work to.

"Other banks typically have more elaborate processes which take longer to complete.

"I am happy to recommend Wesleyan Bank to any other law firm that is in need of short term finance."

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