Latest research reveals that law firms are now waiting 11 days longer for invoices to be paid, with the average time for payments hitting 15 weeks.
While the average payment time for all businesses is just 42 days, it now takes 105 days, on average, for law firms to receive payment from the time an invoice is issued.
Under the Late Payments Directive, payments to businesses should be made within 30 days (60 days for B2B transactions). As law firms wait to be paid, late payments could mean that the need to look for alternative methods of funding such as short term business loans to support cash flow is essential.
Alternative finance options can provide support for investments and growth, in the knowledge that budgets won’t be reduced by unexpectedly late invoice payments.
Peter Alderson, LDF Managing Director, says “Spreading the cost of IT and software upgrades, office refurbishments and tax bills, allows businesses to keep track of their cash flow and will make sure that these firms are not left vulnerable to tax deadlines or insurance premium renewals.”
LDF provides finance packages to help cover the cost of tax bills, insurance premiums and practicing certificates, as well as unpaid invoices, office refurbishment and equipment purchases.
Our all-new business development loan also enables firms to package a large number of development costs such as refurbishment, training and recruitment into one simple solution – this can be funded over a maximum 36 month term, with the option to also finance this in quarterly payments.