Here’s a question: What if your law firm needs quick access to working capital and can’t meet the Small Business Administration loan (SBA) or other business lenders' strict requirements? Here’s the thing: SBA and bank loans aren't always the best loans for law firms, even though they usually have lower rates, longer terms, and higher loan limits. This is because SBA and bank small business loans for law firms can take months to process, and usually, only businesses with collateral and high credit ratings are approved.
Did you know that alternative lenders like Merchant Capital can approve funding in as little as 48 hours because of the easy online application, quicker processing times, and flexible terms? In fact, our Legal Practice Finance, also known as Merchant Cash Advances (MCAs) for legal professionals, is one of the most popular ways to get working capital from alternative lenders for law firms. MCAs are a highly regulated and useful way for law firms in South Africa to get the cash they need to grow their practice and reach their goals. Since there are no restrictions on how funds can be used, Legal Practice Finance offers the freedom for law firms to use their funds however they see fit, whether they want to finance growth projects, expand their team with more law firm jobs, or need money to help them meet the everyday challenges of their industry. Here’s how.
Serving more people who need legal help
In the third quarter of 2021, demand for legal services was higher than ever compared with the same period the previous year. This was because business clients, in particular, were looking for outside help to deal with the COVID-19 pandemic and regulatory uncertainty. As this trend continues and the COVID-19 pandemic clears up, the demand for legal services from both corporate and non-corporate law companies will keep going up. Legal Practice Finance can give you the money you need to meet this higher demand, whether you need to hire more people, update your technology, offer new services, or do more marketing to reach new clients.
Keeping tools and technology up to date
Old devices and software can slow you down and make it harder to serve your clients. Other new technologies, like electronic discovery, have also changed the legal field by making it more complicated and increasing the costs of doing business. Technology updates can also have a direct effect on how much money you make. With Legal Practice Finance, you can upgrade with new technology and software that will help you make more and streamline processes.
Investing in your staff
It's best to hire new people before your business gets too busy and your current team is put under stress. Hiring ahead of time instead of after the fact ensures that your team is ready to take on more work without getting burned out or losing time. If you wait until your team is already overworked to hire someone new, you'll have more work to do while you train up the new person. By hiring more people, your law firm can take on more cases and offer the best care to clients. Legal Practice Finance can fund these new hires, train qualified employees, and hire legal experts.
Incorporating work-from-home infrastructure
Since the pandemic, staff are asking for more and more freedom in the way they work. By letting people work from home, you can draw and keep the best employees while possibly lowering your overheads and office costs. Legal Practice Finance can help you upgrade these specific tech requirements, either in the office or in employee homes.
Coming up with new services
Clients will want more from their law firms, such as more knowledge about their business, data privacy and security, financial knowledge, and a clear understanding of regulations and compliance. Most of the time, effective risk management and cost control are the biggest challenges for law firms when it comes to corporate clients. Firms that can offer coordinated, creative solutions and strategic advice will be better able to meet the changing needs of these clients. Legal Practice Finance can give your law the working capital it needs to keep up with these demands and stand out from other firms in your area.
Investing in further study
Legal Practice Finance funding can help you pay for tuition and other fees so you can invest in ongoing education and training for your staff to keep them on the cutting edge or even offer new services to meet changing client needs.
The bottom line
While law firms in South Africa have a particular focus on a niche service, at the end of the day, they are businesses like any other. And as such, sooner or later, they will need quick access to working capital to grow your law firm. Small Business Administration loans or traditional lending is often cumbersome or out of reach, and so law firms need to think like entrepreneurs and consider Legal Practice Finance. This practical working capital solution is an excellent way for law firms in South Africa to grow their businesses in a way that doesn’t put pressure on their operation.
Learn more about how Merchant Capital can help you grow your business with a Merchant Capital Cash Advance.