Revenue is necessary for any law firm if it is to succeed in its endeavors. With that being said, what are some of the most impactful specifics that exist in this regard? In this article, we shall be exploring these issues, all while providing tips about how Baker Street funding might aid a firm’s wish to increase its positive revenue.
First things first, however, it should be noted that there are various types of law firms. Some firms focus on banking businesses and banks, for example. Then others focus on insurance companies, while other firms might focus on governments and other public bodies.
A national firm might also have a diverse range of clients, from multinational companies to small and medium enterprises and individuals. They might also address different areas of law: from civil to commercial law and criminal law.
When advising their clients, law firms work within ethical bounds to achieve their client’s aims and interests. For this to take place, considerable legal expertise is needed, and that is why lawyers are resorted to at the end of the day. After all, when a deal is signed by a number of parties, all of those at the table would want to make sure that the deal is a valid one.
Lawyers play a crucial role in making sure that this will be the case.
How is income generated?
Basically, law firms charge their clients for their services; however, this can be a little bit complicated. In fact, more often than not, lawyers usually charge for billable hours. This means that they get to record the time they spend on a piece of work for a particular client and then charge for that time in a single bill.
Clients, however, are increasingly opting for law firms that offer limited or fixed prices.
Naturally, this method impacts the law firm’s finances, as an increasingly complicated ordeal may result in a loss, rather than a profit, for the firm.
What can law firm revenue be affected by?
Various issues can affect law firm revenue. Some of the most pertinent issues that have been identified by studies and reports include the following:
- Gender – According to the Martindale-Avvo Attorney Compensation Report, in 2019, female lawyers received 35% less in compensation than male lawyers did.
- Geographical location – The market is regulated by supply and demand, amongst other things. Therefore, prices might be higher in certain cities, with lawyers in rural and less populated areas usually charging less.
- Area of practice – Law is divided into different practice areas, with lawyers usually being specialized in one practice or another. While a law firm focused on criminal matters might charge a particular hourly rate, a law firm that focuses on commercial matters might charge a different hourly rate.
- The type of client – Some clients might be able to pay more than others. If a firm’s targeted clientele is large companies, then the chances are that they get to charge more than a firm that focuses on individuals. The Martindale-Avvo Compensation Report, in fact, notes that whereas lawyers servicing consumers made an average of $181,000 in 2019, lawyers servicing businesses, on the other hand, earned up to $238,00 per year.
How can Baker Street Funding help out?
As can be assumed, prolonged cases can have a financial strain on plaintiffs and lawyers alike. Plaintiffs might not have the necessary capital to pay their lawyers, while lawyers might not be able to sustain their momentum when going against another firm or company that has considerable financial strength.
That’s where Baker Street Funding comes into play. Our business model is focused on helping people. In fact, what we will do is provide legal funding, thereby enabling both attorneys and plaintiffs to have a cash flow based on the value of future proceeds.
When it comes to the funding of law firms, our process is based upon current and former case portfolios. Therefore, when a funding application is submitted, a firm’s history with previously settled cases will also be considered.
Our attorney funding rate for law firms stands at a 2% flat rate on a monthly basis, whereas funding requests from clients referred to by law firms stand at 2.95% to 3% per month. In other words, we have some of the most advantageous rates in the market. That makes us the best resort for law firms striving to increase their revenue and profit-making capabilities.
Ready to explore Baker Street Funding litigation funding solutions? See how law firm funding might fit with your long-term goals. Contact us now at (888) 711-3599 if you wish to discuss funding possibilities!