The legal industry has been transformed in recent years with changes in revenue models, greater use of technology and other innovations. These changes, while offering a lot of opportunity, can also be challenging for smaller law offices and solo practitioners.
Billable hour models where firms experienced little pushback on rates or number of hours is dying, according to the 2017 Report on the State of the Legal Market issued by The Center for the Study of the Legal Profession at Georgetown University Law Center and Thomson Reuters Legal Executive Institute. Replacing it are more flexible billing models.
The future law office will rely increasingly on big data, cloud services and artificial intelligence to provide legal services, according to the staffing service Robert Half Legal.
Most legal firms are small businesses. Offices with under five lawyers make up 76% of the U.S. legal profession, according to the American Bar Association (ABA), based on its 2012 data.
Having access to financing is critical for small law offices today. That’s where BFS Capital can help. BFS Capital has been providing small business financing since 2002. Whether you want to buy better technology, boost marketing, or need help with cash flow, we are here for you. We offer an easy application process and access to funds in as few as two business days1 for qualified applicants.
Law Office Economics
Economic pressures to reduce legal costs is the primary force behind a growing number of firms moving away from the billable-hours model to new alternative billing models such as fixed, flat, blended or capped fees. This shift has impacted the finances of many legal firms and can be particularly felt during slow periods between payments from clients.
Running a law office entrails many expenses upfront, such as court filing fees. While it’s certainly preferable to have a client pay them, you don’t want to lose a potentially lucrative case if a client can’t afford the costs of these filings.
Lawyers who specialize in representing plaintiffs in lawsuits know the upfront costs of litigation, including discovery and trial expenses. It can very expensive, but with the right case, it’s worthwhile to take the financial risk for a potentially lucrative payoff down the road.
Insurance may cost a lot, but it may well be worth it if your offices gets sued by a dissatisfied client. Even if you win a lawsuit, the time and cost defending your office can be particularly damaging financially.
If your law office needs financing to make it through slow times, to cover the upfront costs of a strong legal case or to buy the insurance that will help your office deal with potential issues, consider BFS Capital. Don’t lose out on an opportunity to build up your legal business. Reach out to BFS Capital to see how we can serve your needs
As with most other industries, technology is playing a major role in the practice of law, and that trend shows no sign of slowing.
It’s an exciting opportunity for smaller law firms as it enables them to access more information less expensively and collaborate in the same way that attorneys have in larger firms, according to the GP Solo Blog of the American Bar Association (ABA).
Electronic billing is now commonplace in the legal sector. Documentation, data storage and other related tasks are often performed electronically instead of using paper files. Other essential technology for law offices today includes security software, and tools to enable digital dictation and voice recognition.
Meanwhile, virtual law offices are becoming more common place with practitioners delivering services online and fully operating without a physical office. Legal-specific practice management tools allow lawyers to engage with their clients through secure online portals.
Among the most discussed developments in the legal sector is the use of artificial intelligence (AI). Some legal experts say AI will provide more tools for technology-assisted review, analytics and early case assessment.
For all this technology, the ABA blog recommends that law firms seriously consider hiring an IT specialist or firm so that when something doesn’t work, you can get it resolved quickly.
BFS Capital understands how important technology can be for law offices to succeed. We’ve been working with small businesses since 2002 to provide the financing you need for technology with an easy and fast application process. BFS Capital can provide funds in two business days1 to qualified applicants, so you won’t need to miss out on buying cutting-edge technology for your law office.
Law offices generally require equipment and supplies to help increase efficiencies, no matter if your firm is based in a high-rise commercial building or a virtual office run out of your home. Some of the more expensive equipment you might consider financing includes:
- Telephone Systems
- Computers, Software, Printers, Scanners
- Photocopy machine
- Fax machine
- Furnishings for offices with physical locations
If you are a solo practitioner or a small legal firm, you may feel pressure to keep your staff at minimum levels. However, you should consider if it is the best use of your time to handle office tasks, such as answering phones and paying bills. For some firms, it makes sense to hire a fulltime manager or a virtual assistant. In other situations, hiring temporary help during particularly busy times might be the correct solution. In either case, you need to decide if you have the time and resources to recruit and interview candidates or if the upfront costs of hiring a legal recruiting firm would save money in the long run.
For smaller firms, there may be circumstances where it is beneficial to outsource legal research and writing in order to work on a major case.
That’s why it’s vital to have a financing partner who can provide easy access to funds when a firm needs to buy new equipment or expand staff. BFS Capital understands how important financing is for law firms to succeed. We’ve been working with small businesses since 2002 to provide the financing you need with an easy and fast application process.
Law offices should consider their target market and how to reach the decision makers when developing a marketing plan, according to the American Bar Association (ABA) Journal.
The best ways to market your law office is likely to be a mix of new and old media, such as a business website that uses analytics to see who is visiting, a LinkedIn presence, business pages on Facebook and an active Twitter account.
Your reputation is everything in the legal industry. Some marketing experts suggest signing up for a service to alert you when your firm or any of the individual lawyers are mentioned online. You will then need to decide how to respond both to positive or negative comments.
You may also consider speaking engagements and other activities to raise your profile. Other ways include reaching out to media outlets to let them know you would like to be a source for the legal perspective in your specialization.
Legal marketing firms advocate involvement in your local community, such as sponsoring local sports teams or community events.
If you simply don’t have time to create an effective marketing plan as you concentrate on your law office, hiring a marketing consultant may be the best way to go.
Often it makes sense to get financing for these marketing efforts. BFS Capital understands the importance of marketing for law offices, and we’re here to help you with financing. BFS Capital can provide funds in two business days1 to qualified applicants so you won’t need to miss out on the opportunity to grow your business through marketing.
BFS Capital understands law office financing. We can offer the financing solutions you need to succeed and grow your business.
We understand the hard work it takes to own a law office. Competition in the legal industry means you need every possible advantage. We are here to help you build your law office, whether you need funding to boost cash flow hire more staff, purchase technology or equipment, marketing, or for other purposes.
Unlike many other loan financing service providers, BFS Capital provides personalized service to our customers, and a relationship manager will be on-hand to help you make the right decisions for your business. We know you have many options for law office financing, but our focus on customer service makes BFS Capital the best choice.
We have a variety of funding solutions to meet your specific needs, with business financing from $5,000 to $500,000, and a very easy application process that can get the funds to qualified applicants in as soon as two business days1.
Let us help you realize the law office of your dreams. For more information, call 1-888-905-4334
Fast and Easy Process
1. Complete an Application
Simply answer a few questions about your time in business, monthly sales and business type, and your application will be submitted for review.
2. Fast Approval
Once you fill out your application, one of our funding advisors will contact you.
3. Funds in Your Account
When approved, you’ll have the money in your hands, for any business use, in as few as 2 business days¹.