HOW TO GET LOANS FOR ATTORNEYS & LAW FIRMS
In 2018, the United States was home to an astounding 1.33 million active, licensed attorneys. That figure signifies an increase of more than 15% from a decade ago. Thus the greater need for Loans for Attorneys
The above statistics don’t even include the bar passing-graduates of the Class of 2019 yet. This class alone constitutes of 33,954 graduates.
In any case, becoming an active, licensed lawyer means that you can now launch your own law firm. However, that would require thousands of dollars that you may not have access to at the moment.
Unless, of course, you apply and qualify for financing and loans for attorneys.
That’s right — there are several ways to finance your law firm, just like how businesses can take out loans.You can apply for Loans for Attorneys.These financial programs for lawyers, however, are not like your run-of-the-mill business loans. For starters, most of these law firm funding services are non-recourse.
Ready to learn all about opening a law firm and how attorney loans or law firm financing work? Then let’s get this guide started!
Why Even Start a Law Firm?
In one survey, more than three-quarters of employees said that they feel “on their own” in their company. They believe that their employers don’t give them enough tools or help to grow their careers. As a result, many of them file for resignation.
Workplace politics is another main reason workers quit their jobs. It has such a massive impact, in fact, that at least one-third of employees have left a job because of it.
Besides, as you may have likely experienced, law firms have very competitive environments. The nature of the work itself is competitive — being a lawyer is all about winning a case for the client, after all.
Without proper management, excessive competitiveness can become very stressful. Over time, this can take a huge toll on one’s self-confidence. Ultimately, you may not experience the growth that you’ve always wanted as a lawyer.
These are problems that you can have direct control of if you start your very own law firm. Since you’ll be your own boss, you can create a better workplace, not just for yourself, but for your people too. As a founder of a law firm, you can get away from and get rid of tiresome office politics.
At the end of the day, however, starting a law firm gives you more professional independence. You can take on more projects that interest you and allow you to focus on the niche you want to specialize in. All these then gives you more freedom to craft your own legal brand.
Career and Job Outlook – Loans for Attorneys can Help
Over 100 million cases — that’s how many get filed each year in US state trial courts alone. Federal trial courts, on the other hand, receive an estimated 400,000 case filings every year.
In fact, at the end of the 2019 fiscal year, US attorneys handled more cases than at the start of the year. During the beginning of the year, there were only 74,843 pending cases in US district courts. This jumped to 80,365 pending cases at the end of the year.
All these stats prove that there’s an indisputable need for attorneys. As a lawyer, you’ll always be in demand.
As a founder of a law firm, however, you can make your services even more easily available. This, in turn, can heighten the demand for your specific legal expertise and skills.
The Biggest Challenge
Note, however, that your law firm won’t just provide you a place to practice the areas of the law you want to focus on. It’s also a business, and that means overhead expenses and continuous costs. In some cases, such as in personal injury lawsuits, you may also have to rely on contingency fees.
The costs of starting and running a law firm are the biggest challenges you’ll face. There are the rental rates of commercial space, for starters. Depending on where you’ll establish your firm, you could be looking at as much as $50 per square feet of office space. Loans for Attorneys sounds appealing
Outside of your firm’s expenses are the soft and hard costs of providing legal services. Soft costs often arise from legal research, electronic data storage, and paperwork. As for hard costs, these include court filing fees and paying for copies of medical records.
Delayed Client Payments – Use Loans for Attorneys
On average, processing of legal claim settlements can take anywhere from one to six weeks. That’s the average “waiting time” for claimants or plaintiffs to receive settlement money.
If you’ll work on a contingency basis, then you’ll also wait for up to six weeks to get paid for your legal services. If their claim or lawsuit doesn’t win, however, then you won’t receive any payment. Contingency fees, after all, are a “no win, no fee” type of legal expense.
Also, having a strong case doesn’t always mean that a claim or lawsuit gets paid on time. Payments for wrongful imprisonment settlements, for instance, can take three months to years. Many other lawsuits, particularly those for personal injuries, can take even longer.
Loans for Attorneys: Funding When You Need It
Regardless of how long it’ll take for a claim or lawsuit settlement, your law firm must continue to run. Bills and expenses,
however, won’t wait to get paid. Worse, not having access to a stream of funds can result in key pieces of evidence getting delayed.
In such cases, it’s best to consider law firm funding, which can take the form of cash advances and lines of credit.
Get earlier access to funds from settled cases or finalized verdicts with a cash advance. With this type of litigation funding, you don’t have to wait for weeks, months, or years to get paid. So long as there’s a guaranteed settlement on the case, you can tap its funds even before you receive the check.
The exact amount that you can get in advance depends on your expected payment though. This payment refers to the agreed-upon fees that your client will pay you if you, as the lawyer, win the case. From there, the lender will make computations on your anticipated lawyer fees.
Once granted, you can expect the cash advance within 24 to 48 hours.
Line of Credit
A line of credit (LOC) is another way to get cash funding on litigation handled by your law firm. It works in a similar manner as a credit card in that you can borrow up to its preset limit, any time you need to.
The LOC limit will depend on your agreement with the lender, although it often depends on won cases. You can, for instance, have the limit based on the expected payments of settled cases or verdicts. You can also have the lender provide you a customized LOC program tailored to your law firm’s needs.
Either way, every repayment you make toward the LOC will “refresh” your limit. So, if you pay $1,000 on your LOC account, you can use that amount once again when the need arises.
Working Capital Loans
Did you know that as many as 69% of business owners tap their personal funds for the sake of their business? Such is the case whenever their business encounters financial issues.
For many who don’t have stowed funds, loans are the second most common option. This, in fact, is a usual occurrence, seeing that only about seven in 10 working adults in the US have some savings.
That said, working capital loans can be your law firm’s saving grace if you don’t have savings. Besides, you most likely don’t want (nor is it recommended) to use your own personal funds. Even if it’s your law firm, you need to separate business expenses from your personal life.
You can use working capital loans to fund your law firm’s daily expenses. You can use the money for operational costs, such as paying witness fees or court filing fees. You can even tap it to cover payroll and even your law firm office’s rental payments.
Why Litigation Funding and Not Traditional Loans
With litigation funding, you can take out non-recourse loans or advances. This means that your repayment to the lender will depend on the outcome of your case. If you don’t win the case for your client, then you also won’t owe the lender anything.
Non-recourse lawyer cash advance programs also don’t have specific repayment deadlines. Again, it’s because you have to repay the lender only when your client receives the settlement. As such, you don’t have to worry about compounding interest rates on your attorney loans.
These are benefits that you can’t expect from a traditional financial institution. There are very few banks — if there’s even any at all — that provide non-recourse attorney loans. In addition, almost all conventional loans depend on a borrower’s credit score.
Get the Funds You Need to Grow Your Law Firm Now
There you have it, your ultimate guide on litigation funding and loans for attorneys. Now that you know you your law firm has many financing options, it’s time to explore each one of them. The sooner you do, the sooner you can grow your law firm and make a mark in the legal industry.
If you’re looking for reliable law firm financing programs, we here at Lawsuit Cash 911 are ready to help. Please feel free to check out our numerous innovative funding options for lawyers! Don’t hesitate to give us a call too, if you need help applying for law firm funding.
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