Many professional services firms charge fees to clients and then have to spend months collecting these amounts. In some cases the fees were unknown until the work was completed and this may have taken longer or have been more detailed than first thought.
Accounting and Legal work are good examples of fees that can escalate as further requests by the client are made without reference to the amount that this may cost until it’s finished.
Non-Recourse Fee Funding is available for professionals such as Accountants and Lawyers.
The amount available is determined by the firms annual turnover and a limit set based on this amount. The firm may then offer up to $15,000 per client in Fee Funding.
A client will apply for this funding via the firm and be approved for a loan with a payment term of six or nine months. This means the accountant or lawyer is paid all of their money upfront, whilst the client now has longer to pay their fees than initially expected. (Normal terms would be 30 to 60 days)
Non-Recourse means that should the client fail to pay their debt, there is no recourse to the accountant or the lawyer for this. The lender will pursue the client, not the professional service provider.