Outsiders may be perplexed as to why law firms have any trouble generating cash. After all, hourly rates of even typical firms seem substantial while investment in expensive fixed assets is limited and all substantial firms will have a list of blue chip firms as clients. The reality is that the cash cycle is very long. There are few trade creditors who can be stretched as attorneys need paying every month, while the billing cycle is slow. Most partners much prefer to counsel their clients than argue with them over what is billable from WIP, let alone chase up clients. The decentralised nature of collections and the need to maintain excellent relationships with clients, coupled with a reluctance to offer discounts for early settlements (and therefore devalue the perception of a premium service) all results high non-cash current assets sitting idle on law firms’ balance sheets. Accounts Receivable Finance will address these issues. You can read our whitepaper, Accounts Receivable Finance for Law Firms below or you can download the PDF here. Accounts Receivable Finance for Law Firms is provided by Woodsford Law Firm Finance, an offering from Woodsford Litigation Funding.
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For further information, please contact:
Steven Savage, Woodsford Litigation Funding email@example.com