For contingency fee law firms, achieving financial flexibility for law firm growth initiatives is a continual balancing act – one that is especially challenging for managing partners who self-finance case costs and resources. While law firms who have self-funded their case costs without any debt are commendable for their financial prudence, tying up the firm’s capital as cases take time to settle can hinder growth.

As the legal industry continues to face increased competition and consolidation, it is important for lawyers to understand how the right financing solutions can significantly unlock law firm capital and alleviate the burden of self-financing.  Moreover, by leveraging contingent case inventory for case cost financing, law firms can make the choice of where to deploy more investment in case resources, marketing initiatives, and technology, which are key drivers for growth and expansion.

According to Glen Lerner, founding partner at Lerner and Rowe Injury Attorneys & Lerner and Rowe Law Group, there are four key actions contingency law firms can take to achieve financial flexibility and head on the path to law firm growth.

4 Keys to Achieving Financial Flexibility for Contingency Fee Law Firm Growth

1. Don’t go it alone – take advantage of case cost financing
2. Don’t limit your financing to traditional banks — they don’t understand your business model
3. Leverage your contingent case inventory to build capital
4. Use your past case performance as an indicator for future success

For 31 years, Glen Lerner successfully built up his successful, nationally know law firm by self-financing — funding millions of case costs and never carrying any debt. However, as he points out, this also means he paid millions in taxes on these “debt-dollars”. Today, he leverages his contingent case inventory to finance case costs and free up capital for law firm growth initiatives.

Watch this 5-minute video featuring Glen Lerner to find out how you can achieve financial flexibility for law firm growth.