There is no denying the challenges for law firms currently and cash flow very much top of the agenda with the impact of the last three months and the potential impact of business recovery – resources back in place (cost), more work but payment when?
Many of the banks are very overstretched in supporting their clients and implementing the new government initiatives with financial exposure a severe risk. I have seen and heard of many instances of poor communication both ways.
Obviously costs are involved but dependent on individual firm situations cash flow is more important. In the Manchester Law Society Advantage Group we have http://www.vfslegal.com/ represented by Rick Gregory Rick@vfslegal.com – Associate Director.
In dialogue with him he has confirmed from his perspective “Firms may have managed costs by furloughing staff and reducing overheads. Billing may have been healthy in April but many firms have turned to their banks for assistance. The processing of applications has been slow in a sector where traditional banking is already overexposed. Many third-party funders have withdrawn from what is perceived to be a risky market.”” The crisis has exposed how financially fragile many firms are”
Rick has set out where VFS could be of use in the current situation with
- Cash flow solutions to Medical Negligence and Personal Injury Solicitors. The benefit to lawyers is it releases cash back into the business for incurred disbursements, settled cases and work in progress.
- On settled cases with an issued bill of costs, there are long delays between submitting a draft bill and receiving costs. Why wait? Let your costs draughtsmen reverse the balance of power and negotiate better costs without having to accept a lower offer.
- VFS can advance up to 80% of the estimated bill which can be used for whatever purpose with the business.
- On more complex cases with an admission of liability, VFS can release funds from the firms WIP and disbursements upon assessment.
“An application can be turned around quickly and the firm can use the facility when required. There is no minimum term and the facility is open-ended. VFS does not charge a non-utilisation fee and charges a competitive rate of interest monthly.”
This article was published by Bill Kirby, the Director of Professional Choice Consultancy www.professionalchoiceconsultancy.com