Law Firms should leverage their skill and ability

Sadly, managing one's cash flow is an afterthought for many trial attorneys. Sporadic cash flow is quite common as they only get paid when cases are won.

In a contingent situation, any given law firm may invest hundreds of lawyer hours and tens, hundreds, or even millions of dollars into litigation. If a company loses a case it loses not just its time, but the money invested in hard costs also. It gets worse, a firm is not typically permitted to deduct the money they have tied up in case expenses. Not only must they cover the cash expense upfront, but they need to fund it with after-tax dollars. In a growing business, this cycle is repeated as the firm plows the profits from successful cases into another group of cases.

Leverage. Most lawyers still self-finance costs out of pocket, only because that is how it’s always been done.

A revolving line of credit may be among the most essential tools in a plaintiff attorney's fight for justice. By using borrowed money to finance litigation expenses a law firm can remove the negative tax implications of self-funding as well as fuel growth. And the firm realizes the income it's receiving in fees. Any interest a company pays can be offset by having the money which was tied up in case prices available for business expansion or external investments.

We're at a time where trial law firms have more choices than ever when it comes to funding their practice, from conventional banks and specialty finance businesses. Contingent lawyers can and have to look closely at the bottom line to enable them to grow and assist more clients.

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Contact Amicus Capital Group, LLC to discuss how leverage can help you become a more efficient, more effective attorney. Get informed about the latest trends and discover untapped opportunities for growth. Contact Amicus today at (877) 926-4287 to speak to one of our experienced team members.

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