Everyone knows that when shopping around--price matters. But you don’t buy a car, house or even a phone based on price only because there are features beyond the cost of a good, product or service that may make it a better choice for you.
What tangible and intangible benefits might you be missing if only price is considered when selecting a financing source for your firm?
Here are 3 things that certain lenders provide that can give your firm a competitive advantage and take your practice to the next level.
1. A solid network
It’s always good to have connections. Why limit that notion just to your firm?
Working with a financing company that is well connected in your industry could result in an advantageous co-counsel or a referral arrangement that you wouldn’t have had otherwise. If you’re looking to consult with another firm who possesses different expertise than your firm or more prominence in your field, or simply an additional hand, ask your lender if they can recommend an attorney who’d work well with you.
In addition, a lender with a solid foundation in the industry can likely help steer you in the direction of other reputable vendors in the legal space. Perhaps you need an intricate visual created for trial, or new case management software? Chances are a good lender can make an insightful recommendation because of their experience with other attorneys with similar needs.
2. Attorneys on staff
When you're looking into a funding company, choose one that has real-world knowledge of the legal industry. This will help ease the burden of going through your cases with them and will enhance your overall communication with your lender, as they will be able to “speak your language.” Skipping the extra step of explaining legal jargon and other industry-specific nuances will help the process of obtaining financing run smoothly. Further, working directly with a lender’s staff attorneys will better your chances of getting a true valuation of your portfolio—they know the industry and will keep up-to-date on the most current developments in different litigations.
3. Business operations expertise
Running a law firm and serving your clients is time-consuming and complicated. You shouldn’t have to view your lender as an additional burden. Instead, select one that can assist you in the operations of your firm. Budgeting and devising a careful plan as to how to deploy the money you‘ll receive is of utmost importance. This will allow you to put it to the best use, and determine the appropriate time to repay the lender without issues. With your lender by your side, constructing a plan becomes more manageable.
The highest quality lenders have accountants, MBAs and other finance professionals who will volunteer to work with you towards your goals. Don’t be afraid to view your lender as a pseudo “partner”—they want you to succeed as well.
Overall, it’s wise to select a lender that understands what you do, how you do it and how they can help you along the way. Taking out a large sum of financing is a big decision, and knowing what to do with that financing to propel your firm to it’s full potential is paramount.