Some Law Firms Step Up Collection Efforts
During economic downturns, clients tend to hold on to their money and delay paying attorney fees. Some law firms seeking to avoid cash flow problems are pushing back by seeking earlier payments, law firm consultants tell the Daily Business Review.
“There are some firms starting their collection drives sooner,” said Laura Kaplan, regional market manager for Citi Private Bank’s law firm group.
Many law firms wait until the end of the year before they focus on receivables, says consultant Bill Brennan of Altman Weil. He told the Daily Business Review that delayed collection efforts train clients that they don’t have to pay promptly. But those lax attitudes are ending at many law firms, he said.
Florida law firms stepping up collection efforts include Bilzin Sumberg Baena Price & Axelrod and Katzman Garfinkel, Becker & Poliakoff.
One consultant says quicker collections are among several steps that law firms can take to manage their budgets. They also could cut unproductive lawyers, reduce associate bonuses and eliminate lockstep pay raises, according to Dan DiPietro, who oversees law firm client relations at Citi Private Bank.
