Invoice Management For Independent Law Offices
For law offices of all sizes, accounting is often fraught with a backlog of open invoices from clients, which can place a strain on cash flow. Sometimes, these open invoices lead law firms to employ collection services, which can delay payment even further. Fortunately, there are a few invoice management methods designed to correct and stave off cash flow issues, while getting law firms the payments they are due in a timely manner.
Factoring For Invoice Management
The first method is factoring. Sometimes known as “accounts receivable financing,” factoring lets law offices monetize open client invoices with aging windows of 30 days or more. Factoring services will convert open invoices to working capital within 24 hours, allowing law firms to completely catch up on accounting and stay up to date by submitting future invoices as they are generated. Factoring services also streamlines invoice management by centralizing revenue sources. Additionally, factoring is a debt-free solutions which does not compromise your law firm’s credit ratings. These services can be arranged quickly and implemented within 48 hours of application.
One of the main reasons clients do not pay in a timely manner is because they prioritize their bills differently than businesses. Immediate living expenses are at the top of the hierarchy, while legal fees, medical bills, etc. drop toward the bottom, due to how much of an impact it has on personal savings. Client financing spreads out the cost of fees over manageable monthly installments, while guaranteeing payment to your law firm. The amount each client pays is directly tied to their credit scores, and payments can be handled online or over the phone, which frees up resources in your own accounting department. This form of invoice management also centralizes revenue, and gives your law offices a very good reputation among clients for having budget-friendly payment options, as opposed to demanding the full amount all at once.
Get Started Today
If you would like to clear out open client invoices and get the revenue you are owed quickly, call Vantage Commercial Capital at 913-543-4242. Our team will work with you to provide the best invoice management solution for your law firm, so you can maintain a healthy cash flow, without having to take on extra debt.