In this blog, we discuss the challenges for plaintiffs law firms in managing the irregular cash flow cycle associated with contingency fee cases.

Do you constantly think about case acquisition and revenue for your law firm?

Running a contingency fee law firm is a constant balancing act. You want to provide justice for your clients, while also creating and growing a business.

This challenge comes hand-in-hand with difficult financial decisions, between spending money in the pursuit of current cases in the inventory, or investing that money in more cases for the future of your business.

This painful balancing act is one contingency fee law firm owners unfortunately know very well. It hampers the firm’s growth potential, never having enough to invest in initiatives that could accelerate growth such as case management technology, digital advertising campaigns, or hiring high quality attorneys – these all require capital and liquidity but yours are tied up in case costs.

At this point, most law firm owners go to their bank for a business loan. But most bankers do not understand the business model of a contingency fee law firm and struggle to accurately value a law firm’s greatest asset — their contingent case inventory. Consequently, many firm owners will either be rejected or receive a loan for far less than their business needs

Explore Esquire Bank’s progressive approach to law firm capitalization and liquidity, to help efficiently manage the peaks and valleys of growing law firm revenue that contingency fee law firms struggle with regularly.

Watch the video above to learn more about how to manage the irregular cash flow cycle of contingency fee cases.

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*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 to or appropriate for all law firms. Please consult your own tax, legal and accounting advisors as appropriate. Results may vary by law firm.