CFACommercial Funding Advisory

Professional Services

Business Funding for Law Firms

Law firms operate on a feast or famine cycle, especially plaintiff firms that work on contingency. You invest months or years of attorney time and case costs before seeing a settlement or verdict. Even hourly-billing firms deal with slow-paying clients and high accounts receivable. Starting or growing a firm means covering salaries for associates, paralegals, and support staff before the revenue from their work materializes.

Common Uses

What Law Firms Use Funding For

  • Cover case costs including expert witnesses, depositions, medical records, and filing fees
  • Hire associate attorneys and paralegals to increase case capacity
  • Invest in case management software, document review platforms, and research tools
  • Open a satellite office in a new jurisdiction or higher-traffic location

Funding Options

Best Funding Types for Law Firms

Attorney Line of Credit

A revolving credit line designed for law firms. Draw funds for case costs and operating expenses, then repay when settlements or client payments arrive. Some lenders specialize in attorney lines and understand the irregular cash flow of legal work.

Case Cost Financing

For plaintiff firms working on contingency, case cost financing covers expert witness fees, depositions, and litigation expenses. The funding is repaid from settlement proceeds, which aligns repayment with your actual cash inflows.

SBA 7(a) Loan

Fund a practice acquisition, office buildout, or expansion into a new practice area. SBA loans offer the longest terms and lowest rates, which matters when your revenue is back-loaded.

What Lenders Look For

Qualification Notes for Law Firms

Active bar membership in good standing and professional liability (malpractice) insurance are non-negotiable requirements
Plaintiff firms need to show their case inventory value and historical settlement rates to justify financing
Firms with a mix of contingency and hourly billing are viewed as more stable than pure contingency operations

Ready to Explore Funding for Your Law Firm Business?

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