Barclays, one of the biggest lenders to the legal sector, has said it wants to expand its commitment to financing law firms.

This week the bank declared it was ‘comfortable’ with lending to law firms despite ongoing fears for the viability of many.

The SRA reported it is in discussions with around 1,200 firms that have showed signs of financial issues. Funders are understood to be reviewing their commitments in the legal profession. Last year key financer Hampshire Trust pulled out of the market completely.

Tom Wood, head of professional services at Barclays, said lenders were aware of the ongoing issues in the legal sector but this would not deter it from investing.

‘We continue to extend our borrowings to the sector in terms of traditional law firms and new entrants to the market,’ he said.

‘It does remain attractive to us. The UK is a world leading industry. There is a lot of change happening but I believe that with change comes opportunity. Those firms embracing change and finding new ways of serving clients and growing their business are great prospects for us.’

This week Barclays announced it would lend £2.5m to Manchester firm JMW Solicitors after the firm switched its banking facility from RBS.

The practice has increased staff numbers from 150 to 215 in three years and grown turnover by 50% – doubling profits in the process.

Wood said it was wrong to dismiss an entire profession on the basis of ‘a few firms where it has gone wrong’.

‘As with all industries there will be winners and losers,’ he added. ‘You shouldn’t get dragged down by potential doom and gloom as there a lot of successful businesses who we’re very comfortable lending to.

‘If it’s in a viable position we will lend. Every single firm is different.’

The SRA this week began writing to around 500 firms who flagged up issues in a survey of their finances. The authority will also pursue the 300 who did not respond in time.

The regulator is keen to stress it wants to help firms and can offer advice to firms who engage early with it.

Earlier this week, SRA director of supervision Mike Haley said: ‘We’ve already had numerous examples of better outcomes for firms and clients when firms in financial difficulty have come to us.

’By surveying firms in this way, we are able to make our approach even more risk-based, and hopefully avoid the disruption caused by intervention.’