Alternative Funding – Aid to Lock Down
Lockdown saw lots of challenges. For many, new file openings slowed down and cash flow became much tighter. To provide and maintain a degree of normality and look after clients, firms had to carefully plan how to get staff into home working environments.
Firms had to change the way they worked and forward-thinking firms started to look beyond CIL Loans to see if they could utilise the assets already in their WIP and release cash. Many banks have not been forthcoming.
http://www.vfslegal.com/ had a client who had to implement home working. Some staff had laptops and others didn’t. The dial in functionality was not robust or secure enough for the change, there were planned upgrades to IT and they needed sources of more work.
The firm had a lot of cash tied up in incurred disbursements and also lots of higher value cases that were sat with costs being negotiated.
VFS assisted them by reviewing their caseload and releasing cash tied up in WIP and disbursements.
This enabled them to put the infrastructure in place with new IT equipment and systems and revisit internal marketing. They now have a steady stream of work sourced internally by an enhanced marketing team increasing profitability by decreasing case acquisition costs.
The firm received a CBIL loan and some of their higher value cases settled with higher costs because their costs firm were allowed to negotiate the true value of the bill. The facility was repaid and the firm continues to prosper knowing they have the facility in place to use as it should be. Back in June I did an introduction to VFS http://professionalchoiceconsultancy.com/articles/June2020.pdf . Contact Rick Gregory Rick@vfslegal.com
Article posted in Manchester Law Society – Oct 2020