Law Firm Business Funding
Whether you’re a solo practitioner or have a couple of law partners, you know that running a law firm takes money. Of course, the same applies to small, midsize, and large law practices.
Lawyers in business face many of the same challenges that other companies encounter when it comes to cash flow. In fact, the issue can get even more complicated.
In some practice areas, you set up retainer agreements. You may decide to take credit cards to make it easier on your clients. However, the upfront money goes into your trust account and stays there until you accumulate the billable hours.
Do your attorneys handle personal injury cases? The fact that you work on contingency fee arrangements suggests that you experience your share of fluctuations in cash management. After all, you’re expected to put out money for records and reports. And, you often need to retain expert witnesses.
Of course, there’s also the unspoken. When you don’t achieve a successful recovery for your client, your fee amounts to nothing. Zip. Zero. Nada.
All that hard work and even expenses for absolutely nothing really hurts.
Litigation costs for both criminal and civil cases represent enormous costs. Many law offices find that going to trial becomes an expensive nightmare. Winning in court doesn’t mean fast payment.