Law firms and solo lawyers face exceptional challenges when it comes to obtaining business loans.
Although it is true that lawyers make a lot of money, they often experience long periods without being paid for their services.
This can result in cash-flow issues for smaller law firms, particularly during this Covid-19 pandemic as clients are struggling to pay fees due to financial distress or loss of income.
Conventional lending institutions like banks are wary to lend to small law firms because of their high-risk profile.
So, what is the way out for them? Are there any alternative business funding options?
Yes, there are. If you are a small law firm struggling to get a loan there are lenders that can provide you funding.
SBA, short for Small Business Administration, is a crucial source for businesspersons in need of financing. SBA, in partnership with banks and financial institutions, offers low-cost law office funding. Lawyers can use this for getting loans that will help them tide over jury trial costs, legal fees or something else.
But it can still be difficult to qualify for an SBA loan.
You are aware that success or failure of your legal practice hinges on borrowing money sensibly.
You want to borrow enough so that your practice reaches its potential, but not so much that you will struggle paying back.
If you do not honor your repayment commitment, the lender has the right to sue you individually (if your practice is a sole proprietorship) or sue your firm (if your practice is a limited liability company).
Your ability to get a loan from any lender depends at least in part on the current status of your business.
If the lender perceives your business as stable and profitable, and does not foresee issues in repayment the chances of getting a loan will be high.
But be aware if you default on repayment, the lender will not only pounce on the collateral you agreed, but, if necessary, on your business assets as well.
Nevertheless, you have fast and simple solutions to get US business funding.
Alternative Funding Group is one such answer to obtain business capital loans. The group offers law firms alternative ways to obtain working capital.
Its terms are flexible with easy payment options.
No more paperwork and the need to have a high credit score. As long as the law firm needs business funding, both secured and unsecured loans are available with fast and straightforward processing.
With the present lending environment less than ideal, this is the right time to capitalize on alternative lending sources.
Alternative business funding is assisting business owners with their capital needs regardless of where the business is located.
Do not stress, Alternative Funding Group will help you map out a financial plan, so you can strategize your resources in a smart way.
With a track record of having funded more than $200 million in an assortment of short term and long-term products, the Alternative Funding Group is the right resource for providing solutions for struggling law firms.