Authored By: Candace Whitman
Like many successful trial attorneys, you may have thousands of your personal, post-tax dollars trapped in case expenses that do not earn interest and are not tax deductible. When you fund your own case costs, you are essentially making an interest-free loan to your clients for the length of their case and trapping your money in your firm until you retire.
What would you do if you could get that money back?
When you use Advocate Capital's case cost funding to reimburse yourself for the money you spent on your case expenses, you free up significant cash. This cash can then be used to invest in opportunities to grow your wealth, expand your business, or give back to your team. It's your money—you earned it, you've already paid taxes on it, and now you can put it to work for you. So, how can your law firm maximize the impact of these freed-up after-tax profits?
Investments: Grow Your Wealth
One of the most powerful ways to use your reclaimed capital is to invest it. When cash is tied up in case expenses, it's not growing—it's simply sitting idle and shrinking in value due to inflation. On the other hand, if you choose to invest those funds, you can see returns that help build wealth for your firm and its partners.
Using Advocate Capital for case cost funding, you can unlock the potential to grow your firm's wealth through investments, which can help safeguard your future.
Business Expansion: Take Your Firm to the Next Level
With extra cash on hand, you also have the opportunity to reinvest in your firm's growth. Whether expanding your office, trying a new marketing strategy, investing in new technology, or opening a new location, having the financial flexibility to make strategic moves can put you ahead of the competition.
Expanding your business could mean:
- Hiring additional staff or associates
- Upgrading your office space to accommodate growth
- Investing in advanced litigation technology or tools to improve efficiency
- Enhancing marketing efforts to attract more clients
These investments can increase revenue and client satisfaction while strengthening your business overall.
Employee Development: Invest in Your Team
Your firm's greatest asset is its people. With more available cash, you can focus on rewarding your team, fostering growth, and improving workplace culture. This can lead to higher retention rates, a motivated workforce, and overall firm success.
Consider using your after-tax profits for:
- Enhanced employee benefits
- Continued legal education opportunities
- Team-building retreats or firm-wide events
- Performance-based bonuses and incentives
By showing appreciation for your employees and investing in their development, you create a loyal and driven team that will contribute to the long-term success of your firm.
Charitable Giving: Make an Impact
Many law firms find fulfillment in giving back to their communities. With more cash at your disposal, you can increase your philanthropic efforts. Whether contributing to local nonprofits, supporting legal aid organizations, funding a sponsorship, or sponsoring community events, charitable giving is a meaningful way to use your profits.
By utilizing Advocate Capital's case expense funding, you free up your own funds to make a broader impact on the causes you care about, all while building goodwill for your firm.
Personal Goals: Invest in Your Future
Beyond growing your firm and supporting your team, your after-tax profits can help you achieve personal financial goals. With the cash freed up from case expenses, you have the flexibility to invest in your personal future. Here are a few ideas to consider:
Save for Your Children's College Education
College tuition costs continue to rise, and planning ahead is vital to ensuring your children have access to quality education without the burden of student debt. With the extra capital available, you can contribute more to an education savings account.
Build Your Retirement Fund
Using Advocate Capital to fund your case expenses gives you more control over your firm's capital, which you can channel into retirement planning. Whether you invest in a traditional 401(k), a SEP IRA, or other retirement vehicles, the earlier and more consistently you contribute, the better off you'll be when it comes time to retire. Compound growth over time can significantly affect the size of your retirement nest egg.
Plan for an International Vacation
If personal travel is a goal, your freed-up capital can also help you create memorable experiences. Whether you're dreaming of a European getaway, a tropical escape, or an extended tour across multiple countries, setting aside funds for travel can bring those dreams within reach. By planning and saving early, you can enjoy an enriching vacation without financial stress, knowing your firm's cash flow is in good shape thanks to Advocate Capital.
How Case Cost Funding Works
To get started with case expense funding, fill out our application. If your firm is approved by our credit committee for our line of credit, you will then have the ability to reimburse yourself for the money spent on your cases by submitting a funding request through AdvoTrac®, our proprietary software platform.
Interest is paid monthly on your line balance. When a case concludes, your firm will use the proceeds from the case to pay the principal borrowed for case expenses.
If implemented properly, the cost to your firm is next to nothing because AdvoTrac® allows you to track your case expense line of credit on a case-by-case basis to get reimbursed from your cases for 100% of the cost of our services on the cases that you win.
Our friendly team of experts will be there to help you throughout the entire process. Our support team is made up of paralegals, accounting professionals, and former law firm administrators who are all experts on AdvoTrac®. They are available Monday through Friday from 7 AM – 6 PM CST to assist you.
We provide unlimited, free training to our clients on AdvoTrac® and the integration of AdvoTrac® with law firm accounting and case management systems like QuickBooks®. Our training team has also created videos and PDF training on the AdvoTrac® web portal.
It's Your Money—Use It Wisely
At the end of the day, with Advocate Capital's law firm financing solutions, your cash that would otherwise be tied up in case expenses can now be utilized to serve your firm's broader financial goals. Whether you invest it, grow your business, support your team, or give back to the community, it's your money—you've earned it and paid taxes on it, so make it work for you.
Advocate Capital's litigation financing helps law firms reclaim their cash flow, empowering you to make financial decisions that benefit you, your firm, and your goals. What will you do with your money once you get it back?
Our Directors of Strategic Solutions can help you get started. Click here to find your rep. They will learn about your firm, answer any questions you have about our case expense financing service, give you a demo of our AdvoTrac Case Expense Financing Software, and help you apply.
Call toll-free today at 1.877.894.9724, contact us online, or apply now.
