Law firms are rising to the challenges laid upon them and responding to the COVID-19 pandemic by swiftly managing business continuity and shifting operations to remote working. Each law firm will be in their own place in responding to the challenges of moving to a remote working environment and will move forward with regards to the same – but one principal is clear: all of this was unexpected.
Even firms with robust disaster planning are challenged by the scope and rapidity of the COVID-19 crisis.
Increasingly we see law firms actively responding to work from home (WFH) adjustments by acquiring desktops, laptops, and additional server capacity. Expenses which were unforeseen. Right now, law firms need financial flexibility, increased technology and equipment budgets, and an ability to conserve or even increase cash on hand.
These strategies align with the benefits of leasing and financing—and this is exactly what we are helping our law firm clients with right now, regardless of size, geographic presence, or practice specialty.
Below are the top 5 ways that leasing and financing is helping law firms with their business continuity requirements during this crisis.
- Conserve Capital – Leveraging leasing and financing options is the go-to strategy for a lot of firms right now to manage the unexpected costs of laptops, desktops, tablets, and even software and services that are needed now.
Many firms are not aware that they can 100% finance their software implementations and upgrades and keep existing large projects on track, or enable new software needs related to remote working needs. Consulting fees and training can even be bundled into these packages to contain unbudgeted expenses or simply protect your capital as a strategy.
- Sale & Leasebacks – This strategy helps firms put cash in their pockets for equipment they already own to help offset un-budgeted expenses.
One Am Law 100 client we work with was able to recently refinance their office equipment and gain $5 million back in much needed cash.
- Lease Restructures – Lease restructures is a time-tested financial strategy to put cash back in your firm. There are a couple of factors to consider here, one of which is whether your current lease agreements are the most competitive on the market. More than the lease rate factor is at stake here, which is why we offer firms our Lease Analyzer so they can calculate how the terms and conditions affect the total cost their lease agreements.
Additionally, many may not be aware that CoreTech is able to do this not just for CoreTech leases but we can also potentially buy out or consolidate any qualifying non-CoreTech agreements, often unlocking substantial sums.
- Work From Home Support – This is the mantra of the day and will likely have a forever effect on how law firms operate. Clearly, in the short term these expenses were not budgeted and leasing can be an ideal strategy. However, it’s important to keep in mind that several factors are at play here. Many equipment providers will have their own captive leasing operation, but that may lock you into a single platform and not provide for long term flexibility of choice. An independent lessor like CoreTech provides unmatched flexibility in this regard allowing you to change platforms when your needs change.
- Deferred Payments – CoreTech may be able to defer your payments for the tech and equipment you need now. This is the ultimate in financial flexibility. Let’s talk.
Want to gain more information? We invite you to join our webinar "Conserve Your Cash Reserves and Get the Tech You Need with Leasing" on April 7th at 3pm ET/12pm PT. Register here.
As a bonus – submit your specific questions to firstname.lastname@example.org by Friday, April 3rd at 8 pm ET/5 pm PT to have them answered live on the webinar.#FinancialManagement