Several law firms in South Africa are under financial strain due to the current delays and limitations at the courts, deeds office, Road Accident Fund and other legal bodies because of the Coronavirus pandemic.
Law firms will need access to capital to help them get them through this period but are being turned away from banks because blanket loan criteria do not cater to the business of law. Only urgent matters are currently being heard with delays in proceedings impeding billing hours and payment for many firms.
Specialist financier, Taurus Capital, has created an alternative funding solution for South African law firms. They have built an R300-million capital pool which is exclusively available to the legal profession. “Our solutions are tailored to each firm’s needs, with facilities from R250,000 to R30-million available to firms ranging in size from boutique to large multi-partner firms,” said Elad Smadja, CEO of Taurus Capital.
Distressed law firms can submit key financial documents, applicable court orders, fee agreements, invoices, and book debts. These are used by Taurus Capital’s team of legal and financial experts to conduct a financial analysis and develop bespoke solutions for each client.
They can apply for funding to use only when required as an “insurance policy against the unknown” which is valuable given that uncertainty for legal practices is unlikely to disintegrate in the immediate future. Much like a pre-approved bond for property buyers, a Taurus pre-approved loan is a non-binding funding solution that legal practices can use and pay for, only if required.
“While our funding provides working capital to sustain a law firm during periods of economic contraction, it is also used to cover acquisition and disbursement costs to take on matters. Funding allows firms to pursue growth opportunities for expansion and succession, or to meet seasonal requirements like tax and bonuses,” said Smadja.
Capital is available within 24 hours upon receipt of a signed loan agreement. The application process begins with a consultation process with a Taurus Capital executive to understand the nature of the firm and its specific financial requirements.
