Running a successful business takes money. If you don’t have sufficient funds, you shouldn’t be worried. There are several loan products available and you have many options for financing your law firm. Many law firms use disbursement funding to pay attorney fees or fund client disbursements as needed.

What is disbursement financing?

Disbursement Funding is money made available to law firms to fund payments on behalf of their clients. This is normally paid for for goods, services or sometimes legal services. It is about putting money into the operating budget of a business. With disbursement loans, you improve your purchasing power and can easily meet the needs of your business.

Why is disbursement funding essential? It’s a powerful tool for businesses looking to attract more customers through alternative billing. It is designed to help small business law firms, commercial litigation firms, personal injury firms and more achieve growth without impacting cash flow. With this type of financing, you can meet your expenses with ease. What else? Costs will no longer be a barrier to pursuing claims.

What are the different types of disbursement financing?

There are two main types of disbursements. These are;

  • Delayed disbursements
  • Controlled disbursements

A bank takes advantage of a controlled disbursement to client companies to improve their cash flow. It allows banks to reschedule and regularly monitor disbursements. Likewise, delayed disbursement funds involve slowing down the financing process via checks from banks in remote areas.

Here are the steps to obtain disbursement funds:

To be eligible for disbursement funding, you must have a written document as proof that you meet the verification process.

1. Complete an application

To request disbursement funds, you must complete a fund request form for the proper functioning of your business. The process involves sending an application letter to a case manager who will review your application and eligibility. You need a few documents and details about your business to be eligible for funding.

2. Receive an application response

Once you submit the application and essential documents, the case manager will review your application to determine your eligibility. Be sure to attach all the necessary paperwork to improve your chances of getting financing and save time. Once this is done, you will receive a response within 48 hours.

3. Receive funds

If you are eligible for disbursement funding and agree to the lender’s rules and conditions, you will receive the funds in your account. You will also get disbursement documents showing the fees deducted from the settlement. Some of the costs to expect are;

  • Legal fees
  • Attorney fees
  • Financing privileges
  • Health insurance

4. Submit essential documents

The administrative manager who requests the payment must present various documents. These include an order form or invoice for the signatures of the authorized account administrator. In addition, you must submit a description of the expenses and expense receipts. But that’s not all! You need supporting documents to verify that the expenses are within company guidelines.

The bottom line

Obtaining disbursement financing for your business is fairly straightforward. You just need to fill out an application form which takes a few minutes. The process is not long either. Most lenders will disburse the funds within 48 hours. To acquire a disbursement fund, only apply with reputable lenders to avoid hidden fees or high interest rates. Also check with the lender about all the rules and conditions before submitting your application.