Fee finance is a type of short-term loan that can be used to pay an invoice issued by a professional service provider, such as an accountant or lawyer.
These types of professionals often generate substantial invoices. If clients are struggling to pay those invoices, fee finance allows both parties to manage their money more effectively.
Fee finance is not a new idea in Australia. It has been popular with accountants for over 20 years, and legal professionals are now also getting on board.
Working with a fee finance provider offers an accessible solution for managing cash flow and helping your clients pay their bills on time.
So, is it time to use fee finance for your firm? In this article, we’ll see why you should consider using fee finance, and some of the benefits it can offer to your business and clients.
Is it Time to Use Fee Finance?
Fee finance providers typically work with firms and their clients. Whether or not it’s time to use fee financing depends on if you’re a client or a professional service provider:
For Individuals
We all find ourselves needing professional advice sooner or later. Having expert help is the best way to protect your interests, and fee financing ensures you can access professional services whenever you need to.
You should consider using fee financing if:
- You need accounting or legal advice but are hesitant due to the costs involved
- You have received an invoice from your lawyer or accountant that you won’t be able to pay in full and/or on time
- Paying an invoice would have a negative impact on your day-to-day budget
For Firms
Professional services firms such as accountants and commercial lawyers can access fee financing solutions. Your fee finance provider will set up a payment portal that looks just like your other payment options, providing a seamless experience to clients.
Your firm should consider offering fee finance as a payment option if:
- You regularly deal with clients that are unable to pay their invoices in full and/or on time
- You want to grow the business, expand its service offerings and service a greater number of clients
- You service clients that would struggle to pay the value of your average invoice
- Negotiating and managing individual payment plans is taking up too much of your time
- A lack of cash flow is affecting your ability to grow the business and provide high-quality services to clients
If you often find yourself waiting days, weeks or months for clients to pay invoices, fee finance is the answer. Your provider will approve a client’s application quickly, and you’ll receive the full value of the invoice up front. No more waiting, no time wasted on administering private payment plans.
Why You Should Consider Using Fee Finance
Professional services firms provide crucial advice. However, working with highly trained experts often leads to significant invoices that can deter clients or create problems when they’re paying their bills. As a firm, providing clients with a fee finance option allows you to:
- Improve cash flow – With fee finance, your firm’s invoices are paid in full and up front. This can dramatically improve your day-to-day cash flow.
- Grow the business – You’ll need cash flow if you want to grow the business, offer new services, expand your service area and help more clients. Fee finance ensures you have the cash you need to invest in marketing and expanding the business.
- Service more clients – Providing a fee funding option makes your services more accessible. This allows you to market the business to a broader audience and expand your client base.
- No cost to the firm – Fee financing solutions come at no cost to your firm. The fee funding provider makes money by charging interest on the loan amount, so your firm won’t pay any fees for the service.
When you have a fee financing solution in place, you’re free to focus on running the business and providing the best services possible.
Now’s the Perfect Time to Use Fee Finance – Talk to SmartFee for a Tailored Solution!
Fee finance is the ideal way to support your firm and your clients. Unlike alternatives such as invoice financing, fee finance allows your firm to access the full value of your invoices up front. If that sounds like a good deal for your firm, get in touch with SmartFee!
SmartFee is a fee funding provider that works with professional service providers throughout Australia. We’ve been in business for over 20 years, providing fee finance that helps clients and firms manage their money more effectively.
Our solutions are fully integrated with your other payment options. That provides a seamless experience for clients, and minimises the turnaround between issuing an invoice and getting paid.
Contact our team to find out more about fee financing options for your firm!