system may come when you decide to increase your firm ’ s financial resources .
Let ’ s say you ’ re going to seek out working capital so that your firm is better able to act on new opportunities as they arise . Or perhaps you want to deploy an advertising campaign to bolster your case portfolio . Many law firm financing companies tailor their resources specifically to address the challenges of contingent-fee practices . In doing so , they will evaluate your firm ’ s entire case portfolio in order to determine the amount of funding they can extend to you . The funder is likely to assess your assets — specifically the value of current and expected fees — to determine your financing needs and the level of risk it will absorb by lending to you . Due diligence conducted by a funder will help determine that your firm is suitable for financing and can perform under the agreement .
By having your firm ’ s data organized and consolidated into an easy-to-use system , you ’ ll likely be able to expedite the time it takes to secure financing , as well as build trust with the funder .
If you are seeking financing , try to make sure you include in your system the case caption , docket number and jurisdiction ( if filed ), as well as the projected settlement value for each case and the fees you believe your firm will receive , prior to supplying your funder with your case list for evaluation . The financing company will make its own assessment of the value of your cases and verify docket information through state and federal websites , but you can accelerate the process and increase your credibility by providing accurate information at the outset .
Additionally , most financers require some level of monthly , quarterly or bi-annual reporting while you are a borrower . Having processes in place from day one to precisely track the use of funds and case status will lessen the stress on your firm in having to provide this information to your lender periodically .
Your law firm client data is integral to your firm . There may come a time when you and your partners evaluate the possibility of a merger with a synergistic firm , or you may consider acquiring another firm in order to expand your areas of expertise or geographic reach . At some point later in your career you may want to take a step back from practicing and weigh the decision of selling the firm or engaging in a partner buy-out . In all of these scenarios , having a firm grasp on exactly where the firm stands in terms of its case portfolio is key . You don ’ t want to be pressured to get your data organized while also evaluating a major move — instead make data management a standard now and reap the benefits of doing so in the future .
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