Six Ways to Grow Your Law Firm with Legal Practice Finance
What if your law firm needs quick access to working capital but can’t meet the strict requirements of Small Business Administration (SBA) loans or other business lenders? While SBA and bank loans usually offer lower rates, longer terms, and higher loan limits, they can take months to process and typically only approve businesses with collateral and high credit ratings.
Alternative lenders, like Merchant Capital, can approve funding in as little as 48 hours thanks to an easy online application, quicker processing times, and flexible terms. Our Legal Practice Finance, also known as Merchant Cash Advances (MCAs) for legal professionals, is a popular way for law firms to obtain the working capital they need to grow. MCAs are a highly regulated and effective solution for law firms in South Africa, allowing them to use the funds as they see fit—whether for growth projects, expanding their team, or addressing everyday challenges in their industry. Here are six ways Legal Practice Finance can help your firm:
- Serving More Clients
Demand for legal services soared in the third quarter of 2021 compared to the previous year, with business clients seeking outside help due to the COVID-19 pandemic and regulatory uncertainty. As this trend continues, law firms will need to meet increasing demand from both corporate and non-corporate clients. Legal Practice Finance can provide the funds needed to hire more staff, update technology, offer new services, or enhance marketing efforts to attract new clients. - Keeping Tools and Technology Up to Date
Outdated devices and software can hinder your ability to serve clients effectively. New technologies, such as electronic discovery, have transformed the legal field, increasing operational complexity and costs. Legal Practice Finance allows you to invest in updated technology and software, helping streamline processes and increase profitability. - Investing in Your Staff
It’s crucial to hire new staff before your business becomes too busy, which can stress your current team. By hiring proactively, your firm can manage increased workloads without overwhelming existing employees. Legal Practice Finance can help fund new hires and their training, ensuring your team is well-equipped to handle more cases and provide exceptional client care. - Incorporating Work-from-Home Infrastructure
The pandemic has prompted employees to seek more flexible work arrangements. Allowing staff to work from home can help attract and retain top talent while potentially reducing overhead costs. Legal Practice Finance can assist in upgrading the necessary technology for remote work, whether for the office or employees' homes. - Coming Up with New Services
Clients are demanding more from their law firms, including greater knowledge of business operations, data privacy, financial expertise, and a clear understanding of regulations. Law firms that provide innovative, coordinated solutions and strategic advice will be better positioned to meet evolving client needs. Legal Practice Finance can provide the working capital necessary for your firm to adapt and stand out in the marketplace. - Investing in Further Education
Funding from Legal Practice Finance can cover tuition and training fees, allowing you to invest in ongoing education for your staff. This investment keeps your team at the forefront of legal developments and enables them to offer new services that meet changing client demands.
The Bottom Line
Law firms in South Africa, while focused on niche services, are ultimately businesses that will require quick access to working capital to grow. Traditional lending options, such as SBA loans, can be cumbersome or inaccessible. Therefore, law firms should consider Legal Practice Finance as a viable solution. This practical funding option allows law firms in South Africa to expand their operations without placing undue pressure on their resources.
Learn more about how Merchant Capital can help you grow your business with a Merchant Capital Cash Advance.
