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.

How Merchant Cash Advances Help Law Firms

Business Funding recognizes that law firms run into cash flow problems. With a merchant cash advance, your law office has the opportunity to address money issues regardless of the client fee schedule in place.

How does it work? The bottom line is that Business Funding advances you money based on your future credit card revenue. The application process requires some straightforward answers.  The advance amount depends on your request, as well as proof of the money your firm generates through credit cards.

Here’s the good news. It doesn’t matter if you’re able to repay more money in one month than another. You don’t have to be concerned about sending out regular checks to pay off massive bank loans.

Instead, Business Funding collaborates with your merchant service provider to ensure a percentage of your incoming credit card receipts goes to the repayment of your law firm funding advance.

Law Firms Use Merchant Cash Advances for Many Things

Truth be told, even law firms can run into problems meeting payroll. Nothing is worse than asking employees to hold onto their checks. A merchant cash advance allows attorneys to pay both support staff and other legal professionals.
Meanwhile, new business often suggests the necessity for personnel expansion. However, that costs money as well. Adding staff alleviates pressure on current employees and improves productivity.
While business planning proves critical, it isn’t always predictable. One fantastic feature of a merchant cash advance is that it doesn’t matter how your firm spends its funds. However, here are some ways law offices use their advances on future credit card revenue:

• Rental Fees
• Office Remodels or Renovations
• Marketing
• Expert Fees
• Equipment Costs
• Office Supplies
• Investigative Fees
• Discovery Expenses
• Trial Costs

Running a law firm may ultimately result in a lucrative business. However, when you’re concerned about raising money quickly, a merchant cash advance may be your perfect solution. Contact us at Business Financing to learn more.

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