Getting a bank to back your business is no easy task these days. Tina Williams stresses the importance of solid financial management and the implications of increased lender scrutiny for partners’ personal assetsLaw firms were once the darlings in the portfolio of any bank manager. Those days are over. The recent near-meltdown of the banking system has resulted in banks themselves seeking to remain as liquid as possible.
Accordingly, they have massively scaled back their lending in many areas. They are no longer falling over themselves to lend to law firms seeking new or increased facilities but are adopting a much more cautious approach. Further, banks have been stung by criticism that their attitude to risk was, at best, cavalier. They now wish to be, and to be perceived as being, prudent lenders.
