SBA The Conundrum of Attorney Long Term Financing
Though many attorneys own very successful law practices, they find it very hard to secure stable, low cost, long term financing to grow their practices. They are faced with a classic conundrum- Banks who can lend at low cost, do not accept the most valuable asset an attorney or their law practice owns – the pending portfolio of cases (considered a contingent asset). As a result of this, most banks will not lend to attorneys, or if they do, there are many restrictions with regards to term, repayment and financial reporting requirements.
