A good article in the AFR today with input from Bruce...

A good article in the AFR today with input from Bruce Coombes:

https://www.copyright link/companies/professional-services/late-paying-clients-are-causing-headaches-for-law-firms-20240529-p5jhnv

Small sample (full article behind a paywall):

As a result, firms are turning to fee funders and alternative billing arrangements to secure cash flow from tardy clients.

“Even the clients which are usually good clients and have the cash to pay their lawyer or accountant are now inclined to sit on their cash and save it for a rainy day,” said Bruce Coombes, managing director of ASX-listed payments lending business QuickFee. It predominantly services professional services firms.“You’re going to pay your staff and the rent well before you start thinking about paying your lawyers,” he said.

The growth of lenders such as QuickFee, whose legal clients have increased from 6 per cent to 30 per cent of its business in the past five years, reflects similar difficulties in Britain. There, lock-up times – the time between work done and payment received – have blown out to an average of 124 days.