Do Lexcel or CQS accreditations improve our eligibility or pricing?

The short answer

Yes — Lexcel and CQS accreditations can improve a law firm’s eligibility and sometimes its pricing, because they signal strong governance and reduced operational risk to specialist lenders. However, they are not silver bullets; financial strength, PII position, SRA compliance, lock‑up, and cash flow metrics still drive most credit decisions and rates. Think of accreditations as a positive risk indicator that may tip the balance or shave a little off the margin, rather than as a guarantee.

How lenders interpret Lexcel and CQS

Lexcel is The Law Society’s practice management standard covering risk, people, client care and file governance, which aligns closely with lenders’ operational risk concerns. CQS specifically evidences quality and anti‑fraud controls in residential conveyancing — important for firms with conveyancing‑led revenues. Both help demonstrate embedded controls beyond basic SRA compliance.

Where the impact is most visible

Accreditations tend to carry the most weight with lenders who already serve professional practices, fund PII premiums, support VAT or corporation tax loans, or provide unsecured practice loans. They can also assist on working capital facilities where underwriting leans on evidenced processes, fraud prevention, and claims history. For general asset finance, the effect is often more modest but still positive on the narrative.

When accreditations make a tangible difference

In borderline or complex cases, Lexcel or CQS can move an application from “maybe” to “yes” by reducing perceived non‑financial risk. This is especially true if your firm’s financials are sound but there has been sector noise, elevated PII costs, or heightened conveyancing fraud concerns in the market. Lenders may be more comfortable offering higher limits or lighter covenants where controls are demonstrably robust.

Facilities most influenced by accreditations

Unsecured practice loans and term loans: Better file and risk management can reduce operational risk add‑ons in the margin.
Working capital and revolving credit: Governance evidence helps where lenders assess WIP and debtor quality in professional services.
PII premium finance: CQS and Lexcel can support confidence where claims exposure and controls are key underwriting threads.
VAT, tax and cash flow loans: Positive for eligibility where the lender seeks assurance around discipline and planning.
Disbursement or case‑related funding: Process standards, file audits, and fraud safeguards matter to specialist providers.

What about pricing?

Where pricing moves, the change is typically incremental and tied to overall risk, not accreditation alone. Some professional practice lenders may apply a modest margin improvement or waive certain conditions when a firm’s governance meets higher standards. If the finances are weak, accreditations usually won’t overcome core pricing drivers like leverage, lock‑up, or volatile earnings.

What matters more than badges: financials and controls

Lenders will prioritise tangible financial resilience and liquidity management. Expect focus on partner capital, drawings discipline, EBITDA margin, and stability of fee income by department. Lock‑up (WIP and debtor days), concentration risk, and pipeline visibility all influence appetite and rate more than any single accreditation.

Underwriting essentials most providers assess

PII: Premium cost, insurer, run‑off planning, and claims history over five years.
SRA compliance: Any disciplinary actions, client account breaches, and outcomes of accountants’ reports.
Lock‑up metrics: WIP ageing, debtor days, recovery rates, and billing cadence by department.
Cash flow: Seasonality, tax schedules, contingency buffers, and visibility on near‑term collections.
Leverage: Existing borrowings, security position, and reliance on partner guarantees.

Common pitfalls lenders flag

Rapid growth in conveyancing without matching controls or PII changes.
Over‑reliance on a handful of referrers or lender panels.
Prolonged lock‑up creep and soft billing practices.
Thin partner capital relative to drawings and fixed cost base.
Unresolved management letter points or client account issues.

How to strengthen your case with or without Lexcel/CQS

If you hold Lexcel or CQS, foreground your latest certificates, audit outcomes, and any improvements since the last assessment. Map accreditation controls to lender risk themes, such as file audit processes, AML measures, cyber resilience, and complaint handling. If you don’t hold them, show equivalent internal standards with documented policies, training logs, and QA checkpoints.

Documents that typically improve eligibility and pricing

Latest Lexcel and/or CQS certificates and summaries of the most recent assessments.
PII schedule, insurer name, premium trend, and claims summaries for five years.
SRA accountants’ report and any remediation narratives.
Lock‑up breakdown (WIP and debtor ageing), billing cadence, and recovery data.
Management accounts YTD, cash flow forecast 12 months, and tax schedule.
Practice overview: departments, fee earner mix, panel memberships, and referrer diversification.

Conveyancing‑led firms: extra steps

Evidence of lender panel status, lender audits, and any CQS‑related updates.
Fraud controls, source‑of‑funds checks, and cyber‑security accreditations if held.
MI on case volumes, average fees, fall‑through rates, and staffing ratios.

For a broader overview of funding choices and application tips for law firms, see our resource on solicitors’ loans and finance options.

Getting matched with lenders who understand solicitors’ risk

Many mainstream lenders treat legal practices as generic SMEs, which can reduce appetite or lead to blunt pricing. Better outcomes usually come from providers who underwrite professional practices and read Lexcel/CQS in context. Our platform focuses on matching you to those specialist lenders and brokers that actively support UK law firms.

How Best Business Loans can help

AI‑guided matching: We use your firm profile, departments, and funding purpose to surface relevant providers faster.
Sector fit: We prioritise lenders with live appetite for professional practices and conveyancing‑led firms.
Time saved: You avoid repeating details to dozens of providers who won’t lend to solicitors.

Best Business Loans is an independent introducer. We don’t supply loans directly; we help you reach suitable lenders or brokers so you can compare options with confidence.

Next steps

Complete a Quick Quote with headline details on turnover, profit, lock‑up, and any accreditations.
Receive introductions to providers likely to engage, based on your profile.
Decide which option fits your cash flow, risk appetite, and timing.

It’s free to submit your enquiry, and there’s no obligation to proceed. Start here: Get Your Free Quick Quote.

FAQs: Lexcel, CQS and funding

Do Lexcel or CQS guarantee approval?

No. They help reduce perceived operational risk but lenders still base decisions on financials, PII, SRA compliance, and cash flow. Strong numbers plus accreditations usually yield the best result.

Can Lexcel/CQS lower our interest rate?

Potentially, but usually marginally and only in context. Where pricing moves, it’s often a small reduction in margin or improved terms, not a dramatic change.

We don’t have accreditations — can we still get finance?

Yes. If you can demonstrate equivalent controls and strong financial performance, many providers will lend. Provide clear policies, audits, and evidence of QA processes.

Which products are most sensitive to these accreditations?

Unsecured practice loans, working capital facilities, PII premium finance, and disbursement funding tend to be most influenced. Standard asset finance is less sensitive but still benefits from a strong governance story.

Will accreditations offset a weak PII or claims history?

Not entirely. Lenders will weigh claims data, insurer stance, and premium trends heavily. Accreditations help, but remediation actions and loss prevention matter more.

Practical application checklist

Accreditation certificates and assessment summaries in the last 12–24 months.
Five‑year PII record, claims narrative, and controls adopted post‑claim.
WIP and debtors ageing with commentary on recovery tactics.
SRA accountants’ report, any findings, and remediation status.
12‑month cash flow forecast including VAT and tax events.
Departmental performance MI, referrer mix, and panel standing.

Key takeaways

Lexcel and CQS are positive signals that can improve eligibility and sometimes pricing.
Financial strength, PII, SRA compliance, and lock‑up drive most credit outcomes.
Use accreditations to evidence robust controls and reduce perceived operational risk.
Specialist professional‑practice lenders value these standards more than generalists.
A strong, well‑documented application often matters more than the badge alone.

Important information

Best Business Loans is an independent introducer. We do not provide loans or financial advice. Any finance is subject to provider eligibility checks, status, affordability, and terms. Information on this page is general and for UK businesses; it is not a recommendation to apply for credit.

Updated: October 2025 — Content reviewed by the Best Business Loans editorial team.