Receivables Resolution Services
Many firms are challenged in their ability to achieve optimal realization from their client receivables and work-in-process portfolios. Proper resource deployment is the key to a successful internal collection effort. Avoid the ”80/20 trap” by deploying the majority of your staff resources (80%) towards collecting the most delinquent (20%) A/R balances. Instead – focus staff resources towards better servicing the attorneys and their prompt paying clients while choosing the cost-effective solution of utilizing our professionals to perform receivables resolution services in the name of your law firm for the more challenging client/matter balances.
The Benefits of Hiring On-Site’s Professionals:
Resource Deployment and Portfolio Coverage
Law firms are now focusing their staff and partner resources towards current and/or performing client A/R. They call on On-Site’s experts to resolve the more time consuming, problematic balances and to insure complete “coverage” of the AR and WIP portfolio.
Enhanced Cash Flow
We will convert a portion of your non/under-performing receivables into cash in a non-threatening manner.
Resolution vs. Collection
Our goal is to resolve problematic balances, not merely to collect receivables. Detecting “structural” issues that historically impeded optimal realization rates are as important as collecting the money.
Control
The attorney will always approve our recommended resolution strategy, in advance.
Expertise
We are seasoned professionals with a proven track record of success in collecting professional services receivables. Our client list speaks for itself.
Cost Effectiveness
Because we are consultants, there is no employee-related expense. The bulk of our compensation is most often derived from contingency-fee commissions.
Objectivity
Our consultants will operate in the best interests of your entire firm. We eliminate politics from the process.
While we completely understand the sensitive nature of the attorney/client relationship, we also understand that you deserve to be paid for your services. We can provide you with a level of expertise and professionalism that will improve your cash flow without resorting to inappropriate collection tactics or alienating clients.
Law Firm Dissolution Services
When the decision was made by seventeen (17) law firms, including Dewey & LeBoeuf LLP (the largest law firm dissolution in U.S. history), to undergo dissolution (either in or outside of bankruptcy), each of them placed their trust in On-Site Associates to handle the collection of their client receivables and work-in-process portfolios. On-Site Associates believes that the most successful dissolution projects have the following characteristics:
- Early Intervention– Designing the optimal program while the majority of attorneys and key staff members are still present and the client accounting and document management systems are fully functional will insure the best results.
- Retention of Key Staff– Is a crucial short term goal. Key staff members in the Client Accounting, IT Support and Records departments should be offered financial incentives to remain on board to convert the WIP into A/R; help collect the A/R; maintain client accounting and document management systems; transfer client files; apply client payments; and perform all key receivables-related functions.
- Professional Due Diligence– The most crucial information needed to insure the highest possible realization rates is the background of representation obtained directly from the attorneys. Our legal industry experts will conduct attorney interviews to “ask the right questions” and obtain the information needed to help insure a successful outcome. Based on our experience, the majority of the outstanding receivables and work in process balances will relate to active client relationships that will most likely continue at the attorney’s new firm. This creates a unique “competing for payment” dynamic with the attorney’s new firm that must be considered when designing and executing upon the resolution strategy.
- Control– No two law firm dissolution projects are exactly alike. We go to great lengths to learn as much as we can about the manner in which the firm had been administered in the past. We will then develop and present a resolution strategy that is agreed upon, in advance, by our client. While this extra level of due diligence might appear to slow down the process; we have found from experience that a jointly developed “billing & collections game plan” actually makes the process more efficient in the long run, and with better results.
- Objectivity– Once the dissolution announcement is made, the former active clients can be expected to protect their own interests and the uncertainty of the situation can result in their withholding payment. The attorney, understandably, wants to preserve the relationship, but also needs to understand that the “old” receivable needs to be addressed. This makes it difficult for many attorneys to remain objective in such an environment. Our professional and objective approach to resolving these issues is reflected in the positive results we have achieved.
- Reporting– Our detailed status reports provide our clients with concise information on each of their client accounts and the overall results of the dissolution effort.
- Cost Effectiveness– We most often perform our dissolution services on a performance driven, contingency commission rate basis. The rate charged is a function of the size, age and dollar concentration of the portfolio in question. We can also design alternative compensation structures that meet our client’s needs.
