Most law firms come under the category of small businesses and although they may not be capital intensive operations but they do have serious expenses. Given the fact that cash flow volatility is part of every business big, medium or small, it is but natural that your law firm does have such needs. The problem is, you are not going to get any funds from traditional lenders like banks and other financial institutions because they are policy-bound not to lend to small businesses. Nothing to worry there; you have a much better source of credit in alternative lending companies that are dedicated toward the small businesses. For their part, they know that it’s a vast open market which accounts for over 44% of all economic activities in the United States and one-third of its GDP. They also understand the needs of small businesses much better.
Litigation Financing is Critical For a Law Firm
There is a significant cost of litigation that a law firm has to bear till the time a case is resolved and the payments come. There are scores of cases to handle and in each of these cases you have to bear this cost till you get paid. The cost of handling litigation is constant with no respite and you must meet that cost to continue handling the cases. Apply for funding to alternative lenders who can approve and disburse the funds in quick time.
Many folks, who are not aware of how the legal services function, do not know that there are many costs not related directly to official legal service charges that must be met by a law firm. For instance, the testimony of expert witnesses can decide the verdict in your favor but such testimonies also come at a high price. With fast and easy law office funding you can meet such expenses easily and pay off your debt when you receive your payment.
Long Payment Timelines for Settled Cases
Defendants normally come to you with their own set of problems especially with regard to liquidity. The other side of the story is that you can have a stake in a favorable resolution of the case and get rewarded. Till such time, looking at the client’s condition, you bear the expenses with alternative business funding and adjust it to the bill that you send to the client.
Even in cases that are resolved, the clients take much longer to pay your dues and in this manner, the payment timeline gets extended. You do get paid but then even a gap of 30-45 days can upset your cash flow especially with so many other cases to handle where you have similar expenses to bear. Apply for business funding to an alternative lender and meet such expenses without worrying about payment timelines.
Law Office Operations And Other Sundry Expenses
Inside a law office, you have many other operational expenses like wages of employees such as paralegals, office assistants and others. Then there are inventory costs mainly stationary, utility and sundry expenses. Florida-based Alternative Funding Group is at the forefront of small business funding including law firms across the United States and have distributed over $200,000 worth of funding in the last 5 years.