Authored By: Rob Mohr
One of a trial lawyer's greatest assets is their clients, especially if their clients pay on contingency. Acquiring a full caseload can be very expensive, and the returns from settlements and claims aren't necessarily consistent. At Advocate Capital, we understand the unique cash flow situations that trial lawyers face; that's why we've curated some helpful tips and approaches to help firms worry less about money and focus more on case acquisition.
Take Stock
It's impossible to overcome hurdles in case acquisition without knowing what those hurdles are. It may be tempting to look at competitors for inspiration on how to beat the challenges facing your firm, but every law firm's financial environment is different. Just like a professional athlete watches film of their opponents and themselves, decision-makers at law firms need to understand their own game first.
Here are some common pain points in case acquisition to look out for:
- Upfront Costs: Personal injury cases often demand substantial upfront investments, including investigation expenses, court fees, and expert witness costs. These expenses can quickly add up, placing a significant financial burden on your firm.
- Cash Flow Constraints: Even financially stable law firms may face cash flow constraints that restrict their ability to take on additional cases. Waiting for a case to settle before recovering expenses can strain cash reserves and limit your firm's capacity for growth. Growth that could lead to more cases and clients.
- Risk Aversion: Concerns about depleting financial reserves or taking on excessive debt can make your firm rightfully cautious when considering new cases, particularly those with uncertain outcomes or prolonged litigation processes. Sometimes a case can pay out a large settlement, but expense-related factors might not make it possible for your firm.
Leverage technology
Nearly every industry today is being shaped and disrupted by technology. The legal industry is no different. Tech companies have sprung up in the legal space to assist with everything from marketing to evidence management. Don't be intimidated by the rise of Artificial Intelligence either; instead, focus on what observations from your own firm tell you. A change as simple as adding more payment methods for clients can have a huge impact on your cash flow.
Advocate Capital provides AdvoTrac®, a proprietary case expense tracking program, to all of its clients. In addition to helping clients with funding law firm loans and making payments, AdvoTrac® tracks case expenses case-by-case, allowing Advocate Capital clients to reduce their net cost of capital to below 1%* (on average) by recouping their borrowing costs from their cases. The platform also offers numerous reporting options to analyze case expense data and lines of credit with Advocate Capital. Not only does AdvoTrac® empower clients with their own case expense data, but we also offer comprehensive training and an expert support team with real-world legal industry experience.
Optimize Marketing
Technology isn't just changing law firms; it's also changing how your clients find you. The days of flipping through yellow pages are long gone, and many people are turning to the internet to find a lawyer. Take a careful look at your marketing spend and make sure it's meeting your clients where they are. There's no point in shelling out big money on magazine ads or billboards if the people you want as clients won't ever see it. Develop methods to manage your results so you can continue what's working and modify or stop what's not working.
Case Expense Financing
If your firm is dealing with long, expensive cases, cash may be hard to come by while waiting for a settlement. Maybe you've inventoried your law firm and know where you can improve and take on more cases, but finding the money to put those plans in motion is a challenge. Advocate Capital can help with your law firm funding needs through case expense financing.
Funding from Advocate Capital can reduce and manage the upfront cost of new cases. Paying case expenses without using your cash flow can expand and unlock opportunities for growth and have an impact on the financial confidence of your firm, allowing you to take on larger cases and help more clients.
Case cost financing allows you to afford the best for your clients without worrying about your cash reserves being affected. Advocate Capital can lend you the money you need for your cases**, help you track it with AdvoTrac®, and let you focus your cash on making your firm stronger and smarter.
If you have any questions about Advocate Capital's Case Expense Financing Service, feel free to contact us. Visit our application page if you would like to apply.
**Subject to credit approval
