How to Experience Exponential Growth: Financing Your Law Firm
In Part 1 of this “Experience Exponential Growth” blog series, we discuss how making smart decisions in financing your law firm can provide the capital to scale exponential growth.
Finding the Best Source for Financing Your Law Firm
If you’re self-financing your law firm, you might be restricting your growth. And when it comes to growth – or expanding your law firm – your approach to financing is the cornerstone of whether you experience limited gains or bold success.
Achieving the exponential growth you’ve set your sights on is not only possible – it’s probable. Through evaluating typical sources of law firm financing and understanding how they can impact your firm’s growth, you can start freeing up cash flow and accelerating growth projects and timelines. That means greater strategic financial flexibility for your firm, giving you room to grow…and lots of it.
When it comes to traditional sources of law firm financing, your firm could be susceptible to these common drawbacks, trade-offs and compromises:
- Traditional Banks can improve your ability to finance new cases but you’re limited to the amount banks will lend you, and they might burden partners with onerous covenants.
- Litigation Funding Companies may offer you a more significant line of credit but demand a much higher interest rate and at a greater cost to the firm due to exorbitant fees.
- Alternative Business Structures (ABS) allow you to partner with non-lawyer entities (often private equity) to form a company, giving you access to the most capital – but it requires forgoing a significant percentage of your business’ equity.
Case Cost Financing, fortunately provides a smarter solution to these traditional source challenges, leveraging a firm’s contingent case inventory as collateral and leading to greater access to capital.
That’s why it’s vital to choose a financial partner that specializes in providing tailored banking solutions to law firms – one with a unique understanding of the contingency fee business model – so that they can enable your firm to boldly pursue growth initiatives.
But once you’ve selected the best financing path for your firm, what comes next?
In this “Experience Exponential Growth” blog series, we’ll take you through several examples of top plaintiffs law firms that found tremendous success and exponential law firm growth* because they’re financing their case costs.
Delve into these different battle-tested growth and expansion strategies from top plaintiff law firms and discover their valuable insights to help you succeed boldly, too.
Read More Blogs from Our Experiencing Growth Series
Stay tuned for the entire Experiencing Exponential Growth series, where we’ll go over some important strategies, from marketing initiatives and investing in operations, to expanding your region or practice areas and updating your firm’s core technology.
Next in Part 2 of our Experiencing Exponential Growth series, you’ll learn about the “The Key to Bigger Settlements” by following Philadelphia-based, personal injury law firm Laffey, Bucci, & Kent.
Meet with Esquire Bank
Learn how your law firm can finance its case costs and free up capital to invest in talent, operations, case acquisition, and growth. Schedule a no-obligation consultation with an Esquire Bank Business Development Officer today at a time convenient to your schedule.
Looking to Learn More About Law Firm Growth Strategies?
Download the eBook , “5 Best Practices from Law Firms That Are Growing and Succeeding Boldly”, to receive important insights into our top strategies for achieving exponential growth.
* The information provided on (or accessed through) this blog is provided for general informational purposes only and is not intended as, and should not be relied on for, law firm operations, tax, legal or accounting advice. Some of the information may not be applicable or appropriate for all law firms. Please consult your own tax, legal and accounting advisors as appropriate. Results may vary by law firm.
Understanding Law Firm Funding Options: Contingency Fee Law Firms
There are a few law firm funding options for contingency fee law firms, but one option is best for the unique plaintiffs firm business model. Read this informative blog to learn how case cost financing helps firms leverage their contingent case inventory.
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