Lending to Law Firms and Attorneys
People often forget that most law firms are small businesses. They have to deal with the same problems that other small businesses must contend with, especially when money is concerned. Proper financing can mean the difference between expanding and becoming stronger or falling behind and eventually going bankrupt.
Since the recession, every small business has had to deal with banks’ stricter standards. They want more collateral, more details about how your business operates, etc. Banks generally don’t consider a contingent fee portfolio of cases as collateral. This, however, is a law firm’s most valuable asset.
Fortunately, there are specialty legal funding companies that understand the value of a case portfolio and can either advance money on individual cases or provide a line of credit based on the perceived value of the entire portfolio.
Legal funding is a solution that is specifically dedicated to law firms and their financial needs. The industry has been growing internationally and is starting to make headway in the United States. Legal funding companies are well versed in how the court system operates and the specific needs of law firms.
Banks, long thought of as the only source of financing, finally have some competition, and people who thought the justice system was closed to them have a way of obtaining what they deserve.
Below are some financial resources for law firms.
Bank Law Firm Funding Options:
Specialty Legal Funding Options:
1. Fee Acceleration: http://www.legalfunding.com/solutions/fee_acceleration.cfm
2. Attorney Line of Credit: http://www.legalfunding.com/solutions/lineofcredit.cfm
About the Author:
Lulaine Compere is a writer and research analyst for RD Legal Funding, LLC, a leader in the attorney lending and law firm funding space.