Paul Haskel was recently quoted in an American Lawyer article that explores trends and new approaches in law firm finance. The article discusses various methods of funding utilized by law firms, including debt finance from traditional financial institutions and, more recently, private capital.
Paul commented, “Currently, most firms who have little cash on hand tend to have lines of credit from which to borrow to get them through any given year, and firms in need of immediate capital infusions typically borrow through traditional banks and financial institutions, and increasingly from litigation funders. A lot of law firms typically do borrow to meet their cash needs because they get generally depleted during the course of the year, and they distribute money to their partners in January, and then they have no cash.”
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