Small Business Administration loans are often considered to be the most ideal form of small business loans for attorneys. However, despite typically having lower rates, longer terms, and larger loan limits, SBA and bank loans aren't always the best loans for law firms-SBA and bank small business loans for attorneys can take weeks or months to come through, and typically only businesses with collateral and extremely strong credit are approved.

What if your law firm needs fast funding or doesn't meet the strict requirements of the SBA or other commercial lenders?

With a streamlined online application, shorter turnaround, and more flexible approval requirements, alternative online lenders like Bluerock Options® can approve more attorney funding, often in as little as one business day.

Merchant cash advances are one of the most popular funding options offered by alternative lenders, but thanks to their relative youth, ease of access, and the sometimes secretive tactics used by disreputable lenders, many myths and misconceptions exist about merchant cash advances. In reality, MCAs are a regulated, practical source of funding that small businesses have been using to achieve their goals for over a decade.

With no restrictions on how MCA funds can be used, merchant cash advance funding provide law firms with the flexibility to use their funding however they see fit, whether they plan to finance growth initiatives or need funding to help meet the challenges of their industry. In this post, we'll explore 10 ways law firms can use merchant cash advance funding to fuel their growth, including:

1. Meeting increasing demand for legal services
2. Updating technology and software
3. Hiring staff
4. Shifting to remote work
5. Offering new services
6. Purchasing real estate
7. Acquiring another practice
8. Building a client-focused firm
9. Investing in continuing education
10. Boosting your law firm's marketing

We'll also take a look at how MCAs can help attorneys respond to challenges like longer billing cycles, protecting client data, covering licensing and registration fees, and navigating COVID-19.

Let's get started.

Though there are no restrictions on how MCA funds can be used, they are typically best used for financing growth initiatives that will increase your law firm's revenue-the more you earn, the faster you will repay your merchant cash advance.

Here are 10 ways MCAs can help you grow your firm and your revenue:

Demand for legal services hit record year-over-year levels in the third quarter of 2021, with corporate clients in particular increasingly seeking external expertise to help navigate the COVID-19 pandemic and regulatory uncertainty. Corporate law departments are spending more on outside counsel than ever before-35% higher than in 2016, with 4 in 10 corporate clients anticipating an increase in legal spending.

As this trend continues and litigation backlogs caused by the COVID-19 pandemic ease, demand for legal services will continue to increase for both corporate and non-corporate law firms. MCAs can provide the funding you need to meet this increased demand, whether you hire new staff, upgrade your technology, offer new services, or increase your marketing to attract new clients.

Old devices and outdated software can hinder your firm's productivity and your ability to advocate for your clients. Other new technologies, such as electronic discovery, have also shifted the legal profession by increasing complexity and operating costs.

Updated technology can also have a direct impact on your revenue. According to the 2020 Legal Trends Report, firms that used online credit card payments, client portals, and client intake solutions together consistently earned more than 20% more revenue per lawyer each month compared to firms that hadn't adopted these technologies.

Merchant cash advance funding can be used to purchase new tech and software that will boost your productivity and revenue, such as:

• Secure laptops so employees can work remotely or in the field
• New devices so people don't have to struggle with sluggish systems
• Sophisticated client management systems
• New legal practice management software
• Improved timekeeping and billing software
• Effective document management
• Online payment processing software

Improved technology can also help you automate processes so you and your team can focus on higher-value work rather than time wasting processes and admin.

It's best to hire new staff before your firm is too busy and your existing team is overworked-hiring proactively rather than reactively ensures that your team is ready to take on more work without leading to burnout and lost time. If you wait till your team is already burning out to take on a new hire, you'll end up with more work on your plate while you onboard the new team member.

Increasing your workforce can enable your firm to take on more cases and provide the highest level of care. Merchant cash advances can provide the working capital you need to hire and onboard qualified staff before they start earning your firm money, such as:

• Bookkeepers
• Additional attorneys
• Paralegals
• Office managers
• Reception staff
• Business development specialists to help your firm grow.

You can also use merchant cash advances to hire experts or additional support staff to help with a particular case, such as outsourcing document review, scanning, and other tasks.

Employees are demanding more flexibility in their work arrangements in 2022. Offering remote work options can help you attract and retain the best talent while also potentially reducing overhead and office expenses. Merchant cash advances can help you purchase the technology you need to enable remote work and onboard new remote staff regardless of where they live.

Clients are demanding more of their law firms in 2022, including extra expertise in areas specific to their industry, as well as data privacy and security, financial expertise, and regulatory or compliance expertise. For law firms who work with corporate clients, proactive risk mitigation and cost control are the most common challenges, and firms that can offer coordinated, innovative solutions and strategic advising will better meet the changing needs of these clients.

MCAs can provide the working capital your firm needs to keep up with these demands and set yourself apart from the competition in your area.

Purchasing your office space can help lower your firm's fixed costs by ensuring your payments don't increase over time. When you own your space, you also have the freedom to customize your office space to suit your unique needs, and if you have extra space, you can also rent it out and create a second revenue stream.

SBA loans and bank loans are often the most recommended type of loan for purchasing real estate, but MCAs can also be used for this purpose and may be ideal if you don't have time to navigate the drawn out process of applying for funding from the SBA or a bank.

Acquiring another practice is an effective way to grow your firm without launching a new office from scratch.

Again, SBA and bank loans are the most often recommended type of loan for this purpose. However, MCAs can also be used for this purpose, and are often ideal for firms that need funding quickly to take advantage of a short-lived opportunity.

From offering a seamless, stress-free on-boarding experience to capturing client feedback after a case is closed, the best thing you can do to support your business's growth is build a culture that focuses on client satisfaction first. There are a number of ways you can do this, such as:

• Creating a communication system that works for clients, such as using client-friendly language
• Designing rates and fees based on client needs
• Creating documented systems and procedures to reduce mistakes, better manage your team, and maintain productivity

Implementing these tactics may require an investment of capital. MCAs can provide the capital you need to execute these and other changes that will help you put your clients first.

Merchant cash advance funding can help you cover tuition and other fees so that you can invest in continuing education and training to keep your staff on the cutting edge, or even offer new services to meet changing client needs.

Boosting your firm's marketing often requires an investment of capital. Merchant cash advances can provide the working capital you need to invest in your marketing strategies to help draw in new clients, such as:

• Launching a website or updating your current website
• Search engine or social media advertising
• Traditional advertising such as direct mail, billboards, and other local ads
• Review and reputation management
• Sponsoring local teams or events
• Creating a referral program, such as offering discounts to clients who send you referrals

Merchant cash advance funding is typically best used to finance growth initiatives, but it can also be used to help meet some of the challenges of running a law firm. Here are 4 common obstacles MCAs can help you overcome:

Law firms typically have longer accounts receivable periods, as well as unique billing structures and revenue streams such as retainers or contingency payments. These factors can make it difficult for law firms to maintain consistent cash flow, which in turn can make it difficult to grow your business or respond to unexpected challenges.

Merchant cash advances can help fill in cash flow gaps so that you can keep providing top quality service without delaying your plans to grow.

In addition to consistently following data privacy best practices, law firms face the additional challenge of maintaining up-to-date data security. Regardless of size, all firms must have a secure, ideally cloud-based client record management system with backups and disaster recovery systems in place.

These expenses are unavoidable and upgrades can be costly. Merchant cash advances can provide the funding you need to maintain top-notch data security, especially if you are pivoting to a hybrid or remote work model.

Whether you're a solo practice, a boutique law firm, or a large practice, bar registrations, association dues, and other licensing and registration fees must be kept up to date for all practicing lawyers at your firm. The cost of these fees can create cash flow shortages that may impact your ability to grow. Merchant cash advances can help cover these costs so you can maintain operations and stick to your growth plans.

An essentials-only economy temporarily reduced the need for some legal services, particularly direct-to-consumer services. Courthouse closures especially impacted plaintiff-side litigators, who tend to take more cases on contingency and have less predictable cash flow.

Backlogs clearing these cases as pandemic restrictions ease can lead to further cash flow shortages. Meanwhile, pent-up demand for some services can be tough to meet without additional funding to hire new staff, upgrade technology, or improve services.

Merchant cash advances can help bolster your firm's cash flow so you can invest in tech, qualified staff, and other initiatives that will help you meet demand without compromising cash flow.

Initiatives that will help grow your firm and increase your revenue in the long-term may require a financial investment that you may not have on hand when you're ready to get started. Merchant cash advances are a fast way to access the working capital you need to kickstart your firm's growth.

If hiring a new attorney, for example, will help you bring in more business in the long run, but you don't have cash on hand to cover their salary till they bring in that business, an MCA can help you access the working capital you need to fill in the gaps till business picks up. Merchant cash advances can also kickstart your marketing, enable you to invest in technology to help your team work smarter and increase billable hours, or help you grow into a larger space to support your future growth.

With a streamlined online application, faster turnaround, and flexible approval requirements, Bluerock Options can provide you with up to $500,000 in merchant cash advance funding in less than one business day.

You've established a rhythm, your staff are content, and revenue is steady. Things are going well, but there's a voice in your head telling you they could be better. Is it time to grow your law firm?

Operating a successful law firm requires you to find a balance between practicing law and managing your business. How much time do you devote to practicing law and working for your clients, and how much time do you devote to administrative tasks or business development? Striking the right balance is difficult for any attorney, and it can be especially problematic for solo attorneys or small practices who are looking to grow.

There are a number of challenges that can hinder your practice's development beyond difficulty acquiring new clients and stiff competition with other firms-simply having no time to focus on business growth can be a major obstacle to your law firm's continued growth.

When you're busy providing top-notch legal services to your clients, it can be difficult to spot the signs that it's time to grow your business, and even more difficult to find the time to actually do the things that will help you expand. If you're thinking about growing your law firm but aren't sure if now is the right time, here are 6 signs to look out for:

If you're a solo attorney or the head of a small firm, there's a good chance you're doing work that doesn't actually need to be done by you. Instead of letting requests from potential new clients go ignored for days as you catch up on existing work, delegating tasks to other team members or hiring support staff can help free up your time so you can focus on cultivating new relationships.

Before you start a new task, ask yourself whether someone else in your office can adequately complete the task. Could they complete it faster than you? How much will it cost for you to complete that task vs. another team member? Are there any ethical concerns with delegating that particular task? These questions can help you decide which tasks to delegate and to whom.

Any task that is outside your core competency is a candidate for delegation. Tasks that are ideal for delegation include:

• Customer service: Hiring someone to handle simple inquiries like case status updates or questions about dates and timelines will free up time so you and your attorneys can focus on expense work or business development. It also provides a better customer service experience for clients, which in turn increases your chances of gaining new referral business.
• Accounting: Whether you hire someone or invest in accounting technology, finding simpler ways to manage invoicing, bill collection, and payroll can significantly reduce valuable time spent on day-to-day bookkeeping.
• Visitor management: Simplifying the process of signing visitors in and out and managing deliveries and other drop-bys will make it easier for your front desk staff to manage more foot traffic as your business grows.
• Case management: Specialized software can help you manage case documents, notes, schedules, expenses, time tracking, and client communications all in one place.
• IT: Hiring or contracting out to a dedicated IT firm can save you a lot of time and headache trying to troubleshoot tech issues on your own.

You may also wish to consider outsourcing some legal tasks like document review and scanning to other experts such as freelance lawyers or other qualified professionals so that you and your staff can focus on higher priority work.

It's hard to acquire new clients when no one knows you exist! Client referrals and word of mouth marketing can only take your firm so far. Eventually, you'll need to invest in marketing if you want to grow your practice.

Competition is high, and carving out a niche is an effective way to differentiate your firm. But many busy law firm owners simply don't have the time to invest in branding and positioning their practice and establishing marketing strategies to help bring in new clients.

Marketing is an ideal task to outsource, whether you hire a marketing firm or a dedicated in-house marketing officer. Experienced marketing professionals can help you:

• Create a visual brand that sets your firm apart from the competition.
• Develop a precise understanding of your target audience so you can create content that will help solve their problems and more effectively generate the right leads.
• Build a client-centered website that is easy to find online and functions simply. It should be easy to understand with clear navigation, understandable service descriptions, and easy ways to contact your firm.
• Create targeted online advertising campaigns to expose your firm to the right potential customers.
• Identify community outreach opportunities such as event sponsorship.

Boosting your firm's marketing is a powerful way to kickstart your practice's growth, but it requires an up-front investment of capital that may take some time to return. If you don't have the cash on hand to support a new marketing plan but are confident that your strategies will bring in new clients and more revenue, a non-loan form of financing such as a merchant cash advance can help provide the working capital you need to get started.

According to Clio's 2020 Legal Trends Report, firms that use online credit card payments, client portals, and client intake solutions together consistently earned over 20% more in revenue per lawyer each month compared to firms without those technologies.

Up-to-date technology shows clients that you're a modern firm that isn't stuck with one foot in the past. People want to do more online now, including legal tasks, and the trend will only continue to grow as we weather the ongoing COVID-19 pandemic. Investing in new tech to streamline client communication will help future-proof your firm and set you apart from competitors who lag behind.

Updated technology can also help you streamline workflows to make client intake and case management easier, while also holding your team accountable and helping the firm to run more efficiently.

Clearly mapping out business processes like onboarding new hires, billing, filing, and other aspects of your workflow such as scheduling meetings and signing in visitors, creates a strong and sustainable structure that will make it easier for your firm to grow.

Structuring these processes enables work to happen quickly and easily and ensures that your business can operate smoothly when you're not there. Adding structure can be difficult when you've already got a larger team to re-train, but if it's baked into your company culture from the start, it will be easier to encourage buy-in from new staff as your team grows.

Establishing standard processes can also be an expensive undertaking-sometimes you need to invest in new tech, and sometimes it's a matter of retraining your team and accounting for lost time as everyone gets used to the new system. Working capital funding can help you purchase new tech or fill in the gaps as your team adjusts.

"Growth" doesn't mean simply hiring more staff and taking on more clients! It can also mean growing into a larger space or moving to a new neighborhood, especially if you're also expanding your team.

Moving to a larger office or expanding your practice to a second location gives you an opportunity to grow the size of your team, reach new locales, and connect with an entirely new audience of potential clients, further boosting your firm's growth. Multiple types of small business funding exist to help you acquire new real estate. Read our Law Firm Funding Guide to learn more.

Law firm growth can take many forms, from expanding your team, moving to a larger office, or opening a new location to taking on more cases or focusing on cases with bigger payouts.

The first step to growing your firm is to set goals for what you want to achieve. With a clearly defined goal, you can work backwards to determine the steps you need to take to get where you want to be. Once you've determined your goals, you can set realistic and timely deadlines to keep your growth on track, as well as identify what resources you may need to acquire and how to measure your success along the way.

Activities that will help grow your firm and increase your revenue in the long-term may require a financial investment that you may not have on hand when you're ready to get started. Law firm funding can provide the working capital you need to kickstart your growth.

If hiring a new attorney, for example, will help you bring in more business in the long run, but you don't have cash on hand to cover their salary till they bring in that business, law firm funding can help you access the working capital you need to fill in the gaps till business picks up. A working capital loan can also supply the cash you need to kickstart your marketing, invest in technology to help your team work smarter and increase billable hours, or grow into a larger space to support your future growth.

Alternative lenders like Bluerock Options® offer a number of different types of attorney loans to fuel your growth, such as real estate collateral loans, alternative small business loans, and small business lines of credit online, as well as non-loan financing such as merchant cash advances and online invoice factoring. Read our Law Firm Funding Guide to learn more.

Whether you're looking to start your own firm, shore up your existing practice's cash flow, or fuel your growth, law firms of all sizes and specialties can benefit from an infusion of working capital.

Attorneys and law practices face a number of unique challenges, including:

• Office space: Law firms, whether they're a solo practice, a boutique firm, or a large full-service firm, need to present a professional, credible image, which means they need an attractive and well-furnished office space with reliable technology and a comprehensive library of law resources. This infrastructure can be costly, and prioritizing these purchases can be a difficult financial decision for new or smaller practices.
• Billing models: Courtroom trials and other cases can be expensive and time consuming, and may take years to pay out depending on whether you use a retainer model, an hourly rate, contingency, or bill by installment. Litigation firms and transactional firms can both face additional financial challenges while a case is in progress, including cash flow limitations and lack of access to working capital.
• Marketing: Successful law practices need to do more than simply rely on referrals from past clients or other lawyers-they also need to take the time to identify their ideal client and create a marketing plan to reach their audience. Both offline and online marketing strategies are effective for law firms, but each require a financial investment to kickstart.
• Continuing education: Some jurisdictions require practicing lawyers to complete a certain number of continuing professional development hours every year to maintain and enhance their understanding of legal topics such as professional responsibility, ethics, practice management, procedural law topics, and other related skills.

Law firm funding can help practices of all sizes meet these challenges and continue to grow.

Long and short-term law firm funding options are available, including:

1. SBA business loans for law firms
2. Bank loans
3. Private equity funding
4. Alternative funding
5. Lines of credit
6. Lawsuit funding or litigation-based financing

Let's take a closer look at these options.

SBA loans are technically provided by intermediaries such as banks, credit unions, non-profit organizations, or Commercial Development Companies (CDCs), but are guaranteed (usually up to 80%) by the Small Business Association (SBA) in the United States or Business Development Bank (BDC) in Canada.

These loans are often the preferred loan for many small businesses, including law firms. The risk to the lender is lower because they are guaranteed by the federal government, which means this type of funding often comes with lower rates and better terms for borrowers. However, the application process for SBA funding is much more rigorous than other forms of law firm funding, with extensive application forms that often require years of detailed business and personal financial information. It can take weeks or months to process your application and there's no guarantee of approval. Most applicants are rejected, especially those with low credit or those seeking a short-term loan.

SBA loans are available for both start-up and existing law firms. Several SBA loan options are available, but there are typically two types of SBA loans that are ideal for law firms:

1. 7(a) Guaranteed Loans: With fewer restrictions on how funds are used, larger loan amounts, longer repayment terms, and lower interest rates, 7(a) loans are the most commonly sought SBA business loan for law firms. These loans typically require collateral and follow similar guidelines to standard term loans. Loans up to $5 million are available, and are ideal for helping businesses meet short- or long-term needs as well as for starting, expanding, or acquiring a business. This program also includes Express loans, which have a much shorter turnaround time-36 hours or less-and typically don't require collateral for loans under $25,000.
2. 504 Local Development Company Program: 504 loans are long-term, fixed rate loans that are commonly used to acquire real estate or equipment such as computers or other technology. These loans are administered by CDCs through commercial lending institutions with the expectation that the borrowing business will create or retain jobs or uphold public policy goals such as supporting minority-owned businesses, revitalizing a business district, or rural development.

While they may not offer rates as low as SBA loans, bank loans offer competitive terms and rates depending on the size of the loan and your credit history. Banks and other commercial lenders have strict lending requirements, but the requirements are not as restrictive as SBA loans-for this reason, bank loans may be easier to acquire than SBA business loans for law firms, especially if you already have an existing relationship with a commercial lender. However, similar to SBA loans, it can take weeks to find out if your bank loan application has been approved and approval is never guaranteed.

The anticipated revenue for a law firm can make these businesses an attractive candidate for funding compared to businesses in other industries, but it can still be difficult for law firms to get the funding they need from banks and other commercial lending institutions. Because banks prefer to grant loans to large, established businesses or loans for larger amounts, it can be especially tough for smaller firms or firms looking for smaller loan amounts to get attorney funding from a bank.

With private equity funding, you sell shares in your company in exchange for immediate capital. Typically, a private equity firm will purchase stock in a law practice in order to profit off that firm's future growth-that means you won't owe money if your business fails, but if you succeed, you'll split your profits with your investors.

Depending on your goals, private equity funding may not be a viable funding option for private law firms. However, because it provides a cost-effective, low interest method of financing larger amounts, it can be ideal for expanding a law firm.

Alternative funding from direct online lenders like Bluerock Options is easier to acquire than SBA or bank loans for law firms, with flexible lending requirements as well as faster approvals-sometimes in as little as 24 hours. Multiple types of short- and long-term funding are available, including alternative small business loans, real estate collateral loans, and lines of credit, as well as non-loan forms of financing such as merchant cash advances, invoice factoring, typically with no limits on how you use your funding.

These lenders base your approval on the health of your business and are more lenient with credit records and financial documentation. They are also more likely to lend to newer businesses, though some will not lend to start-ups or businesses in operation for under 6 months. However, rates are higher than SBA or bank loans, often with daily or weekly repayment terms depending on the type of funding you're seeking.

Business lines of credit are available from both banks and alternative lenders, typically for longer terms than short-term funding options like merchant cash advances. This type of attorney funding offers the most flexibility, allowing you to draw from and repay the line of credit whenever you need. You'll only ever pay interest on the amount you borrow.

Lines of credit are ideal for accessing cash periodically, similar to a credit card but with better rates and higher limits (up to a specified maximum amount). This makes lines of credit a practical law firm funding option for responding to unexpected complications, purchasing new technology, or other major purchases that don't require a larger loan but which can still strain your cash flow or require more working capital than you can easily access.

Lawsuit funding is a special kind of financing that is available only to law firms. With this type of financing, lenders will grant loans based on anticipated court case wins or settlements, typically for class action, medical malpractice, or other complex and expensive litigation-essentially, your lender will provide an advance on the funds you hope to win, and you'll repay the loan based on the total amount you receive. Though it's typically offered directly to clients, lawsuit funding is also available to firms.

Some lenders will require you to pay back the loan whether you win your case or not, while others will only charge interest if you don't win so that you can make interest-only payments till you find another way to pay back the principle.

This type of funding typically features higher interest rates because the risk to the lender is greater due to the possibility of loss or recovering less than the amount advanced.

The best business loan for your law firm depends on your goals. Your attorney funding-including the amount you borrow and your repayment terms-should align with your business goals, and should ideally serve a specific purpose such as covering operating expenses or helping you invest in future assets like real estate.

For short-term funding, non-loan forms of financing such as merchant cash advances or online invoice factoring can provide a fast infusion of working capital that can help you bridge the gap between invoice payments, invest in marketing your law firm, or kickstart your growth.

For long-term funding, SBA 7(a) loans offer the best rates and terms, but they are extremely difficult to acquire. Bank loans are a good alternative, but if neither of these options are available to you, long-term funding like small business loans or collateral business loans from a direct online lender are a practical option.

For fast law firm funding, your best bet is always an alternative lender. These lenders can approve and deposit funds in as little as 24 hours, while SBA and bank loans can take weeks or even months with no guarantee of approval.

Attorney funding can help firms face the unique problems lawyers face, including:

• Longer billing cycles: Long accounts receivable periods and unique billing structures and revenue streams such as retainers or contingency payments can make it difficult for law firms to maintain cash flow, which in turn can make it difficult for your business to respond to unexpected challenges or continue to grow.
• Technology: Old devices or outdated software can hinder your productivity and your ability to advocate for your clients. New technologies such as electronic discovery have also shifted the legal profession by increasing complexity and operating costs.
• Data security: In addition to consistently following data privacy best practices, law firms face the additional challenge of maintaining an up-to-date data security threat model. Firms must have a secure, ideally cloud-based client record management system with backup and disaster recovery systems in place as well.
• Licensing and registration: Whether you're a solo practice, a boutique firm, or a large practice, bar registrations, association dues, and other licensing and registrations fees must be kept up to date for all practicing lawyers.
• Services offered: Clients are demanding more of their law firms, including extra expertise in areas specific to their industry, as well as data privacy and security, financial expertise, and regulatory or compliance information.
• COVID-19: An essentials-only economy has resulted in a reduced need for some legal services, particularly direct-to-consumer services. Courthouse closures have also particularly impacted plaintiff's side litigators, who tend to take more cases on contingency and have less predictable cash flow.

Attorney funding can be used for more than simply surmounting the problems lawyers face-it can also be used to grow or expand your business, such as:

• Purchasing real estate: Lower your fixed costs by ensuring your payments don't increase over time, or take advantage of the freedom to customize your office space to suit your unique needs. If you have extra space, you can also rent it out and create a second revenue stream.
• Acquiring another practice: Expand your business without starting from scratch by acquiring an existing practice.
• Hiring staff: Increasing your workforce can enable you to take on more cases and provide the highest level of service. Bookkeepers, additional attorneys, paralegals, office managers, reception staff, and business development specialists can all help your firm grow. You can also use attorney funding to hire experts or additional support staff to help with a particular case.
• Building a client-focused firm: From a seamless, stress-free on-boarding experience to capturing client feedback after a case is closed, the best thing you can do to support your business's growth is build a culture that focuses on client satisfaction first. This can include things like putting a communication system in place that works for clients (using client-friendly language, for example), as well as designing rates and fees based on client needs and creating documented systems and procedures to reduce mistakes, better manage your team, and maintain productivity.
• Continuing education: Invest in continuing education and training to keep your staff on the cutting edge.
• Marketing: Create or expand a marketing and advertising campaign to help draw in new clients.

Attorneys and law firms are often considered to be a more desirable loan applicant because the legal profession is typically a high-paying field. However, some of the problems lawyers face can make it difficult to acquire funding. Here's what you need to know before you apply for a business loan for your law firm:

• Revenue and billing structures for law firms can result in inconsistent cash flow even if your revenue is strong throughout the year, which can make it difficult to get approved for attorney funding. Requesting payment up front, billing clients quickly, offering discounts for early payment, and making it easier for clients to pay can all improve your cash flow.
• Depending on the ownership structure of your firm, you may need to provide personal guarantees from all firm owners, including personal financial statements and personal tax returns for 3-5 years. Collecting and organizing this information for multiple owners can be difficult.
• Some lenders may require access to your firm’s trust account to get a full understanding your firm’s financial standing. If access to your trust account is required, client information will be kept completely confidential.
• You may need to supply a business plan that explains how you intend to use the loan as well as how you plan to pay it back. Business plans will be necessary for SBA loans and often bank loans, but are not always required for alternative lenders (though it's always a good idea to have one prepared just in case).

Here's the process you can expect to follow when applying for attorney funding:

1. Identify why you need funding: Some applications also require you to include a purpose statement. Otherwise, knowing how you intend to use your funds will help you and your lender determine what type of funding will work best for your practice. Lending options for start-ups, for example, will differ from the options available to established businesses looking to grow.
2. Determine how much funding you need and how much you can afford: Most lenders have minimum and maximum funding amounts, and it's important that you take the time to determine how much funding you can actually afford before you apply.
3. Review your credit reports: Most lenders will request your credit score before they review or approve your law firm funding application. Traditional lenders and SBA-backed loans have stricter credit score requirements, while alternative lenders focus more on cash flow and the overall health of your business.
4. Research loans you're eligible for: Your business likely won't be eligible for every type of attorney funding. Researching the loans you're eligible for will help you compile the right information and application requirements.
5. Collect your documentation: Exact documentation requirements will depend on the type of funding you're applying for.
6. Submit your application: Traditional lenders will take longer to review your application-sometimes weeks or even months-while alternative lenders will respond much faster. Bluerock Options will respond to your initial application in less than one hour during normal business hours.
7. Review your offer: If your application is approved, your lender will supply an offer package detailing the terms and conditions of your loan, including loan amounts, rates, terms, and other fees. Read your offer carefully and make sure you understand all the conditions and costs before you sign.

Get the law practice funding you need

As an alternative lender, Bluerock Options® can approve more law practice loans than traditional lenders. We can also approve your law practice funding faster, with funds deposited in as little as 24 hours. We provide several types of small business funding to help grow your law practice, with funding from as low $3,000 up to $500,000.

Bluerock Options® funds all legal specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your practice's cash flow.