Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Law firms have historically been viewed by banks as relatively immune to a downturn in the economy. However, following Halliwells’ collapse, banks no longer take a view that lending to law firms is low risk. Many banks will now not provide partner capital loans where they are also the primary lender to the firm and now look to take debentures as security, which was very rare pre-Halliwells. Banks are also increasing their margins on funding to law firms to reflect their concerns that lending to law firms carries a higher risk post-Halliwells. The only alternative for many firms is to ask partners for increased capital contributions.

This premium content is reserved for
Legal Week Subscribers.
Subscribe today and get 10% off.


  • Trusted insight, news and analysis from the UK and across the globe
  • Connections to senior business lawyers within the leading law firms and legal departments
  • Unique access to ALM's unrivalled, market-leading reporting in the US and Asia and cutting-edge research, including Legal Week's UK Top 50 and Global 100 rankings
  • The Legal Week Daily News Alert, Editor's Highlights, and Breaking News digital newsletters and more, plus a choice of over 70 ALM newsletters
  • Optimized access on all of your devices: desktop, tablet and mobile
  • Complete access to the site's full archive of more than 56,000 articles

Already have an account?

For enterprise-wide or corporate enquiries, please contact Paul Reeves on Preeves@alm.com or call on +44 (0) 203 875 0651

Dig Deeper


Legal Week Newsletters & Alerts

Sign Up Today and Never Miss Another Story.

As part of your subscription, you can sign up for an unlimited number of a wide range of complimentary newsletters and alerts. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.