In this blog, we discuss the power of capital for plaintiffs law firms to fuel growth and increased case volume, featuring insights from bestselling author, Reza Torkzadeh, founder and CEO of TorkLaw.

Click above to watch the video.

Managing Cash Flow Challenges

Cases are the growth engine of a contingency fee law firm. The fundamental requirement for properly prosecuting a case is capital. Without sufficient funding, it’s a true struggle to litigate a case to its full value. Many contingency fee firms struggle with consistent cash flow and access to capital for years and years, which can curb the rate of how quickly they can grow, limiting the volume and types of cases they can handle at any one time.

“The fundamental requirement to properly prosecute a large case is capital; to hire the best experts and to be able to litigate that case confidently until its full value.”

—Reza Torkzadeh, Founder & CEO of TorkLaw

In addition, while injecting the necessary capital into litigating cases, the firm must still meet its many spending commitments to keep the firm running such as payroll and rent. On top of that, if the firm wants to grow, it must continue investing in marketing to acquire more cases, and that requires the power of capital.

This adds up to a hefty bill at the end of each month, and many firms without a consistent in-flow of case fees find themselves struggling to keep the lights on, much less growing at exponential rates. This is why many contingency fee firms find themselves languishing for years in a stalled growth stage as they’re tied to the lifespan of their cases. Properly prosecuting a case to its full value often takes more time than a firm can afford because they don’t have enough runway.

“One of the greatest challenges was not having access to the capital. We needed to really grow and scale the firm at the pace that we wanted.”

—Reza Torkzadeh, Founder & CEO of TorkLaw

Unlocking the Power of Capital: Finding the Right Financial Partner

This is why it’s pivotal to have a financial partner who understands the contingency fee business model and the specific capital needs of a contingency fee firm. There are plenty of banks and financial partners that offer financing to contingency firms. However, few banks and financial partners have the expertise to value a firm’s case inventory with the authority to lend against it. Fewer have the vision and understanding to confidently extend access to big capital investments in costly growth drivers such as the purchase of an expensive web domain, case management and client communications technology integrations, or multi-year projects such as building a call center.

Choosing the right financial partner to take your firm out of the feast and famine cycle of cash flow challenges can be the difference that drives true growth.

“In becoming an Esquire customer, we immediately felt the support and we had the runway to make the investments we wanted to in our advertising. We immediately were able to increase the volume of leads that came in monthly.”

—Reza Torkzadeh, Founder & CEO of TorkLaw

Watch the video above featuring Reza Torkzadeh, founder and CEO of TorkLaw, as he discusses the power of capital and how he has doubled his firm’s case inventory year-on-year, increased revenues by 80%, and tripled his staff by partnering with Esquire Bank.

Meet with Esquire Bank

Ready to scale your firm’s growth? Learn how your contingency fee law firm can finance its case costs and free up capital to invest in marketing, technology, talent, operations, case acquisition, and growth.

Speak with an Esquire Bank law firm banking expert today.  Schedule a consultation at a time convenient to your schedule.

SCHEDULE A MEETING

Special Offer – Free Copy of The Lawyer as CEO Book

Get your free copy of Reza Torkzadeh’s bestselling book The Lawyer as CEO. Reza Torkzadeh is the founder and CEO of TorkLaw, an Irvine, California-based, personal injury law firm. Within its first week, Reza’s book was on Amazon’s bestseller list.

REQUEST A COPY

* 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.