Business Financing for Attorney Practices
The outlook for the legal professional remains optimistic. The media salary for an attorney in 2015 was $115,820 and by 2024, the number of jobs is expected to increase by 6%, according to the Bureau of Labor Statistics. Attorneys are dogged and it’s not just because of their tireless ability to debate the law. Statistics show that the vast majority take the hard route to success. Sixty-five percent of all attorneys in the US and Puerto Rico practice law solo or in a small firm of 2-5 lawyers. This is financially difficult for any business, but especially for attorneys who graduate on average with $140,000 with law school debt. Overcoming this financial obstacle is crucial.
Besides perseverance, attorneys require access to working capital to become a successful legal professional. Fortunately, flexible business funding from Greenbox Capital is available to meet the complicated financial circumstances attorneys face. Banks are not equipped to evaluate the risk of an attorney whose cash flow is tied up in contingency cases that may or may not bring an award. Forget lenders who evaluate case portfolios and possible legal winnings. They charge exorbitant fees and can takes months to respond to applications.
Boost your winning spirit with alternative financing solutions from Greenbox Capital. We specialize in fast access to small-business lending solutions for attorneys. Lawyers may be surprised to know that they can get approved on financing based on their revenue as recent as the past 3 months. To qualify for $5,000 to $250,000 in business financing, an attorney’s revenue only needs to be at least $7,500 on average for each of the past 3 months. Our financing criteria is especially good news to attorneys just starting out. Minimum time in business is just 6 months. Personal credit and lack of collateral aren’t obstacles either. So, yes, an attorney with $100,000 plus in personal debt due to law school tuition won’t be automatically turned down.
With a merchant cash advance¹ or small-business loan² from Greenbox Capital, attorney’s have the chance for success on their own or in partnership with like-minded lawyers. Opportunities right now are abound in the field of e-lawyering. The availability of digital marketing and cloud-based services make it possible for attorneys to build a practice offering unbundled or limited legal services online. For example, a merchant cash advance¹ from Greenbox Capital fits well with the e-lawyer business model, which usually accepts credit cards. A short-term small business loan with fixed payments is suited for the attorney who wants the stability of fixed payments over a set amount of time.
Take Your Legal Practice to the Next Level
Additionally, attorneys who work on retainers know full well that small-business or non-business clients don’t have the cash on hand to pay retainers up front. The situation forces the attorney to accept credit cards. Then, once the retainer (inevitably) runs out, if additional payment is required, many attorneys are left with no choice but to allow installment payments or drop the case. Ending service is not a recipe for success, but neither is offering financing or credit terms to clients when you’re a struggling business owner yourself. This is another scenario where fast and easy-approval business financing from Greenbox Capital is critical to the success of small law firms and solo legal practitioners. With access to working capital, you can keep your cash flow positive until your business makes it to the level. In fact, it’s the way to make ito the next level.
Law firms or solo attorneys that accept credit cards can obtain up to a $250,000 cash deposit in as little as 24 hours with a Merchant Cash Advance (MCA) from Greenbox Capital. Sometimes referred to as “credit card receivable funding,” a Merchant Cash Advance is the purchase of future sales. Payback is fully automated and most business owner say they don’t “feel” the repayment. Generally, a business may get approved for a cash advance equal to 70% or 100% of their monthly revenue.
Solo and Small Law Firms Require Working Capital
If you’re an attorney who joined the ranks of a large firm believing it was your only option, think again. Funding for a solo practice or small legal partnership is easily accessible from Greenbox Capital. More good news is that we don’t place restrictions on the use of the cash advance. Payback options are also convenient and automated. They are designed to fit into your business operations and require little or no administrative work on your end.
Choose Split-Funding or Automated Clearing House (ACH) payback models. Fixed ACH payments are deducted directly from the business bank account either daily or weekly. This is ideal for the attorney who keeps a close watch on cash flow. Knowing how much is due helps business owners manage cash flow. Once you’ve paid 50% of the cash advance, Greenbox Capital may renew the advance and increase the amount of cash available. If you qualify for a Business Line of Credit you may be eligible to renew without first paying back 50% of the original advanced amount. This keeps cash ready for fast access, as needed.
Along with a line of credit, other programs include our Early Pay-off at 30, 60, or 90 days from the date of funding to receive a discount. For every 30 days that the advance is paid early, you may receive a factor rate reduction. Our Escrow Program enables you to receive funding prior to paying off existing cash advance with another lender. A 3 Stip Business Cash Advance only requires a voided check, driver’s license and bank account verification via decision logic or screen share. It’s possible to receive up to $30,000 through the 3 Stip Business Cash Advance program.
¹ Greenbox Capital Merchant Cash Advances may not be available in all regions of the United States or Canada.
² Greenbox Capital Small Business Loans may not be available in all regions of the United States or Canada.
For a free consultation, please complete our application or contact our Merchant Account Service Team.