Set Up Your Contingency Fee Law Firm for Financial Success
Managing Partner at Kreindler & Kreindler
EVP & Head of Corporate Development at Esquire Bank
In this blog, we discuss the value of financing case disbursements in setting up your contingency fee law firm for financial success.
The Increasing Cost of Success
Running a successful law firm is often accompanied by an increasing demand on capital – as case volumes increase and cases demand more resources, so do case costs.
Since 1950, NY-based Kreindler & Kreindler has specialized in aviation disaster litigation, successfully recovering more than $20 billion for its clients. While the firm’s business grew steadily due to winning high profile aviation accident cases, like many contingency fee law firms, Kreindler & Kreindler’s partners felt the strain of paying case costs out of their own pockets – frequently supporting between $5 million and $10 million dollars in case disbursements.
Finding Value in Financing Case Costs
For years, the firm’s partners prided themselves in their ability to self-fund case expenses – something which Kreindler & Kreindler Managing Partner Noah Kushlefsky admits had blinded the partners to the value of financing case costs outside the firm. But once they investigated the possibility of case cost financing with Esquire Bank, they realized that other options existed which would allow them to free up that capital for growth.
“Esquire Bank opened our eyes to case cost lines of credit,” noted Noah Kushlefsky. “What we have started doing is borrowing on the financial outlays on cases that we know are going to be successful.”
Adopting a new view toward case cost financing, the partners of Kreindler & Kreindler were delighted by the differences they saw. Capital could now be freed up to invest in growing the business or expanding into new practice areas. Additionally, the firm no longer had to contend with strict covenants that were typically placed on the partners by traditional banks.
To learn more about how Kreindler & Kreindler changed its approach to financing case costs and set up the firm for financial success, click above to watch this video featuring Noah Kushlefsky.
Meet with Esquire Bank Today
Whether your goal is investing in growth, expanding your practice, or improving your cash flow, understanding your case inventory is an important valuation for your firm. Leveraging your firm’s case inventory to finance case disbursements can allow you the flexibility and liquidity to pivot your focus to investing in digital marketing, technology, and staff, and ultimately build case value for your clients.
Schedule a no-obligation consultation today to understand how Esquire Bank’s solution-based credit facilities can help you grow your law firm business.
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- Life Cycle Stage: Educated - Product Solutions
- Content Tier: silver
- Content Type: webinar-short