For effective financial management firms need to consider many things, but two of the main items are overheads and cashflow. Law firms face the challenge of needing to provide a service to clients (and all the expenses that come with running a practice) prior to realising any income. Cashflow budgets can help identify periods where expected revenue is insufficient to cover regular payments. This also goes hand in hand with knowing your lock up period – look at the sum of your WIP and debtors and this will reveal how long your capital is locked up for.
Despite having a good bank of files and work in progress (WIP), there can be times when reserves are stretched. While banks will not always extend credit against WIP, we understand the strength of your business and provide funding tailored to your needs.
Outsourcing disbursement funding can free up your cash flow, reducing pressure on your general account as well as reducing interest and finance costs associated with overdrafts and traditional bank lending.
Our pre-settlement funding can also be offered to your clients, providing much needed cash at a difficult time.