The changes of the past few years have left contingency firms searching for ways to increase efficiencies in the post-pandemic landscape. Fortunately, firms have many options for optimizing operations and better serving clients.
Embracing Assistive Technologies
While technology was already transforming the legal industry prior to the pandemic, COVID-19 accelerated a decisive shift toward more reliance on digital services. Technology like online intake forms, modern payment portals, website chatting options, data analytics, and animated presentations in courtrooms can all help firms appeal more to clients and encounter more success and efficiency in the course of business.
Artificial intelligence software that reduces lawyers’ time investment and manpower has increased dramatically in popularity over the past several years. Algorithms can complete helpful functions like sifting through contracts to find pertinent terms and using predictive tools to hypothesize the outcome of litigation. These convenient technologies decrease the amount of time lawyers must spend on previously labor-intensive tasks, thereby allowing firms to direct their valuable energy and resources on clients.
Securing Litigation Financing
Litigation financing is a powerful tool for contingency firms. Over the past few years, litigation funding has become significantly more popular, according to Bloomberg Law’s 2021 Litigation Finance Survey. The survey shows that, compared with five years ago, 69% of lawyers who were interested in or previously used litigation finance were more likely to seek funding today, and 23% of lawyers were more likely to seek litigation financing now than they were just one year ago.
Litigation financing companies generally perform well during times of economic instability. During recessions, when firms or traditional lenders are unable or unwilling to provide large amounts of capital to invest in cases, litigation financing companies, including outside venture capital funders, can share the investment burden. According to the Bloomberg survey, during the pandemic, 56% of litigation funders reported that their business increased “even in the middle of the economic downturn.”
Managing Cash Flow
The most efficient contingency firms have a strong grasp on how to effectively manage cash flow. Due to the nature of contingency fee work, it’s important for contingency firm lawyers to keep meticulous records on business and litigation expenses and to be as realistic as possible about projected income.
Litigation financing and technology can both aid in more robust cash management. Outside funding can help address budget shortfalls and certain software can help predict potential issues or highlight possible areas for efficiency growth.
Aid Your Contingency Firm’s Growth
Leveraging litigation funding, embracing helpful assistive technologies, and reinforcing cash flow management can all help contingency firms move into the future with preparedness and efficiency.