Law Firm Financial Management: Using Credit Line to Purchase Equipment
Asked and Answered
By John W. Olmstead, MBA, Ph.D, CMC
Q. I am the financial partner with our 16-attorney firm in Indianapolis. The firm has had a rough couple of years. We had several partners leave the firm and they took several corporate clients with them. Unfortunately, this was consistent retainer and time bill work. While we still have some retainer and time bill corporate work, a much larger mix of our work is now contingency fee work. As a result, we have had some cash flow challenges and for the first three months of this year there was no money to pay partner draws. We have a credit line with the bank of $125,000 that we have not used. We only use our credit line for long-term equipment purchases. We would appreciate any suggestions that you have.
Back by popular demand! Join us June 29 in O’Fallon for this unique opportunity to learn about all aspects of federal civil practice from seven federal judges and several experienced attorneys on topics ranging from important pleading requirements to trial preparation and settlement negotiations. Attorneys with all levels of experience practicing in the U.S. District Court for the Southern District of Illinois who attend this seminar will gain a better understanding of: recent developments in federal jurisdiction; pitfalls to avoid and procedures to follow; how to manage the costs and burdens of discovery while uncovering key evidence; the bench’s perspective on federal civil practice; jury instructions and pre-trial orders; settlement conferences and the procedures for a successful mediation; and much more.
