November 13, 2006
Leasing Keeps Money in Law Firm Partner Pockets
Technology-related investments are on the rise in law firms. It not just for replacement purposes, although Y2K-related purchases are now solidly in the obsolete camp. A host of new technologies in hardware and software provide law firms with new ways to increase income and cash flow. They include both new products and services as well as remarkable new capabilities in the current generation of mainstay law firm systems. Microsoft’s Vista, wireless technology, .NET technology, PDAs like the BlackBerry™, dashboard technology, peer group benchmarking, workflow improvements, automated event and exception tracking, automatic client engagement rules compliance, revolutionary changes in how information is reported and used in law firms—these and other technologies are driving new IT investments in law firms.
They are investments that usually more than pay for themselves, but the payback takes time. My friend John Dondey, at Baytree Leasing, reminded me that there are better ways to use cash than tying it up in depreciating assets such as IT equipment and software. With leasing, law firms have an easy way to finance IT investments without it taking money out of partners’ pockets. With leasing, law firms can avoid upfront payments all together, and monthly leasing payments should be offset by the higher income-producing benefits of the new investments.
With outright purchase, the law firm has to choose between making investments that they know are needed or using their cash for partner distributions. Leasing lets the firm do both. The firm can keep pace with peers and competitors without reducing partner distributions. Leasing provides the law firm with fixed, scheduled payments to simplify expense budgets and provides a hedge against rising interest rates. Cash requirements, including partner compensation, can be forecast and managed with greater accuracy.
Leases will cover the full cost—hardware, software, training, implementation and other related services. Companies like Baytree offer lease facilities that not only cover initial cost but also accommodate subsequent upgrades, add-ons, and technology refreshment during the term of the lease. And the process is super easy. Baytree, for one, has reduced the process to an art form—fast credit approval and simple applications make the process quick and efficient.
There are a number of leasing companies targeting law firms, but when I think of law firm leasing, I think of John Dondey and his team at Baytree Leasing Company. If you are interested in pursuing leasing for your IT investments, you can e-mail John Dondey at jdondey@baytreeleasing.com or call 877-229-4888, extension 224. You can also visit their web site. You can find other quality leasing vendors listed on the Ancillary Products and Services page within the Alliance Section of www.juris.com.
Morepartnerincome.com is sponsored by Juris, Inc. For information about Juris® products and services for increasing law firm performance and partner income, go to www.Juris.com.
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Filed under Cash Flow Issues by Tom Collins