find the latest legal job
Corporate and Commercial Partner
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Adelaide CBD · Join a leading Adelaide commercial law firm
View details
Freelance Project Finance Lawyers
Category: Other | Location: All Australia
· Vario are looking for freelance lawyers with experience in project finance ideally within the renewable energy sector
View details
Vario Freelance Lawyers
Category: Construction Law | Location: All Australia
· We are looking for lawyers who appreciate the endless possibilities that a freelance career can offer.
View details
Freelance Construction Lawyers
Category: Construction Law | Location: All Melbourne VIC
· We are looking for construction lawyers who appreciate the endless possibilities that a freelance career can offer.
View details
Banking Associate - 1-6PQE - Allen & Overy
Category: Banking and Finance Law | Location: United Kingdom
· Banking Associate - 1-6 PQE - Allen & Overy
View details
SME law firm benefits with disbursement funding

SME law firm benefits with disbursement funding

Andrew Le

A boutique law firm has experienced significant wins from using disbursement funding, including the ability to take on an increased volume of matters without the restriction of cash flow issues.

Disbursement funding is described as a practice that is geared to assist SME law firms, personal injury law firms, commercial litigation firms and family law firms.

By definition, according to JustKapital Disbursement Funding general manager, Anthony Hersch, “It is the provision of finance for third-party costs (disbursements) that a legal firm incurs on behalf of their clients that forms part of any litigation.”

“The reason this financial solution is powerful is it allows the law firm to defer payment of disbursements until settlement, or up to 30 months – whichever comes first,” Mr Hersch said.

One legal professional who has made the most out of disbursement funding is Andrew Le (pictured), principal of Andrew Le & Associates.

Mr Le set up his boutique law firm 15 months ago in Cabramatta, NSW. Like many SMEs starting out, Mr Le identified that managing cash flow was crucial to his firm’s success, in terms of both its operations and growth capabilities.

Mr Le said since his firm utilised disbursement funding with JustKapital Disbursement Funding, it has reaped a number of rewards.

“Cash flow is the biggest concern for any start-up. I used disbursement funding at the firm I was at prior to setting up my own business and experienced its merits firsthand,” he said.

“Knowing that I was able to tap into this type of funding solution from the outset contributed to the decision to start my own practice.”

Similarly, Mr Le said he has used disbursement funding to increase the firm’s capacity to take on an increased volume of cases, without the restriction of cash flow tied into disbursements.

“It provides more cash flow flexibility and has directly contributed to our growth,” said Mr Le.

Mr Le said while his firm deals with all areas of law, it has a primary focus on personal injury matters – something he said aligns well with disbursement funding.

Mr Le explained that personal injury cases often require expert reports, which include medico-legal reports, radiology reports and barristers’ fees.

There are often other types of expert reports or expert witness fees, all of which can be cost prohibitive. This may lead to the case either not proceeding or not being seen through until completion, he said.

“We’ve mainly used disbursement funding to cover client’s medico-legal reports, which average out to about $4,000 per case,” Mr Le said.

“A typical file or claim is not usually resolved for 18 to 24 months, which can be really hard with cash flow. This is where disbursement funding performs a critical role – it allows lawyers to perform their service and operate their firms without working capital issues.”

Commenting on Mr Le’s success with using disbursement funding, JustKapital Disbursement Funding general manager Anthony Hersch said, “In the legal space, we continually find that cash flow is the critical measure that influences an SME law firm’s capacity”.

“Disbursement funding releases working capital, enables cases to move forward quickly, allows greater cash flow flexibility, increases the number of cases – without cash flow implications – and ultimately helps facilitate growth,” he said.

In addition, Mr Hersch said using disbursement funding can give smaller law firms like Andrew Le & Associates a competitive edge, and place them in a position where they can compete with larger firms for business.

“We encourage firms to continue to utilise disbursement funding to provide a vital role to boost in the organisation’s operations, sustainability and future earning potential,” Mr Hersch concluded.

Like this story? Read more:

Book commemorates diamond milestone for WA law society

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

SME law firm benefits with disbursement funding
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Debate rises over Victorian judiciary attack
Jan 24 2018
Debate rises over Victorian judiciary attack
The Victorian Bar has become the latest to go on record condemning recent political attacks on the V...
Michelle Quigley QC
Jan 24 2018
Vic Barrister who helped stop major heritage redevelopment joins Supreme Court
Michelle Quigley QC, who assisted a coalition to oppose the redevelopment of St Heliers villa estate...
Building, construction
Jan 24 2018
Building for NSW coroner’s complex slated for early 2019
Efforts to relocate the state coroner’s facilities from Glebe to Lidcombe are on track, according ...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...