Working Capital for Law Firms
Contingency cases take years to settle. Expert witnesses need payment now. Staff expects paychecks every two weeks. The timing mismatch between legal work and fee collection creates constant working capital pressure that strong case pipelines cannot solve alone.
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Working Capital in Legal Practice
Law firm working capital must account for case duration, contingency fee timing, expert costs, and the reality that legal work often precedes payment by months or years.
The Contingency Fee Gap
Personal injury case filed in 2023. Settlement in 2025. Fee collected in 2025. Meanwhile, 24 months of case expenses, staff payroll, and overhead.
Expert Witness Costs
Medical experts, accident reconstructionists, and other experts need payment during case, not at settlement.
Staffing Costs
Law firms typically spend 30-40% of revenue on staff. Paralegals, associates, and admin expect regular paychecks regardless of case timing.
Case Expense Investment
Filing fees, depositions, discovery costs, and litigation expenses accumulate during cases before fees are collected.
Law Firm Working Capital Challenges
The timing mismatch between legal work and fee collection defines law firm finance.
Contingency Fee Timing
Work performed today, settlement years away. The structural timing gap between legal work and fee collection creates cash pressure.
Expert Witness Costs
Medical experts, economists, and specialists need payment during litigation, not after settlement.
Payroll Obligations
Staff expect regular paychecks. Associates, paralegals, and admin cannot wait for case settlements.
Case Expense Investment
Filing fees, depositions, discovery, and litigation costs accumulate before fees are earned.
Practice Growth
More cases mean more case expenses. Growth requires more working capital investment.
Settlement Delays
Cases take longer than expected. Appeals extend timelines. Settlements negotiate for months.
Working Capital Application Process
From application to funding in days, not weeks.
Application
Complete online application with firm information and capital needs.
10 minutes
Documentation
Provide bank statements showing fee deposits and revenue patterns.
Gather documents
Evaluation
We review financials understanding legal economics and case timing.
24-72 hours
Funding
Accept terms and receive funds deposited to your firm account.
Same or next day
Cash Flow Support for Law Firms
Working capital structured for legal operations provides the bridge between case work and fee collection. Fund case expenses, cover payroll, and maintain operations without waiting for settlements.
Case Expense Bridge
Fund expert witnesses, depositions, and litigation costs during cases rather than at settlement.
Legal Practice Understanding
We evaluate law firms understanding contingency fee timing and case pipelines.
Payroll Coverage
Meet payroll obligations regardless of case settlement timing. Staff expects consistent payment.
Fast Decisions
Legal operations cannot wait for bank timelines. Get capital decisions in hours to days.
Case Pipeline Value
We recognize the value of pending cases and expected settlements.
Growth Enablement
Take more cases, hire associates, expand practice without depleting reserves.
Working Capital Applications
Common scenarios where law firm working capital makes the difference.
Case Expense Funding
Expert witnesses, depositions, and litigation costs during active cases.
Typical funding: $30K-$150K
Payroll Coverage
Meet staff payroll when case settlements run behind schedule.
Typical funding: $25K-$100K
Practice Growth
Fund expansion, new associates, or additional case capacity.
Typical funding: $50K-$200K
Settlement Bridge
Bridge cash flow while major settlement negotiates or appeals.
Typical funding: $40K-$150K
Technology Investment
Legal software, case management systems, and technology upgrades.
Typical funding: $25K-$75K
Marketing Campaign
Client acquisition advertising and marketing investment.
Typical funding: $20K-$75K
Working Capital Options for Law Firms
Understanding available options for legal practice working capital.
| Feature | Working Capital Loan | Bank Line of Credit | Case Funding |
|---|---|---|---|
| Speed | 24-72 hours | 30-60 days | 2-6 weeks |
| Legal Understanding | High | Low | High |
| Payment Structure | Fixed schedule | Interest on draws | Case-specific |
| Collateral | Often none | Usually required | Case assignment |
| Case Pipeline Value | High | Low | Primary factor |
| Use Restrictions | Any purpose | Any purpose | Case expenses |
| Total Cost | Moderate | Lower | Higher |
| Credit Requirements | Moderate | Strong | Case focused |
Working Capital Requirements
General requirements for law firm working capital loans.
Practice History
Established law firm with revenue history.
1+ year preferred
Revenue Level
Demonstrable revenue showing practice viability.
$300,000+ annual
Bank Activity
Firm bank account showing fee deposits and patterns.
4+ months statements
Bar License
Active bar license in good standing.
Active license
Case Pipeline
Active cases demonstrating ongoing revenue potential.
Active caseload
Current Obligations
Current on existing firm obligations.
No current defaults
Strong case pipelines and consistent fee collection support working capital approval regardless of temporary cash flow variations.
Real Results
Martinez & Associates
Personal Injury Law, Texas
The Challenge
Martinez had three major cases approaching trial requiring $85,000 in expert witness fees and deposition costs. Expected settlements totaled $400,000+ in fees, but expenses were due now.
The Solution
We structured $95,000 working capital based on their $65,000 monthly revenue and strong case pipeline. Payments aligned with expected settlement timing.
The Result
Expert witnesses retained. Depositions completed. All three cases settled successfully. Working capital repaid from settlement fees with significant return.
“We had $400,000 in expected fees but needed $85,000 now for experts. Working capital let us invest properly in cases that settled for more because we had the right experts.”
Law Firm Working Capital Data
Industry benchmarks for legal practice working capital needs.
Working Capital Advantages for Law Firms
Why law firms choose working capital loans.
Case Investment
Invest properly in cases with expert witnesses and thorough preparation.
Payroll Security
Never stress staff payroll. Meet obligations regardless of case timing.
Pipeline Recognition
Case pipeline value recognized even before settlement.
Growth Capital
Take more cases, hire associates, expand practice.
Speed to Capital
Get cash when you need it for case expenses.
Legal Understanding
We understand legal economics and contingency fee timing.