A large proportion law firms were directly impacted by the Covid-19 pandemic, with many witnessing a reduction in profits, and some even facing the risk of insolvency. Fortunately, the Government put a number of measures in place to help all businesses stay afloat during this time of financial distress and uncertainty, including the Coronavirus Business Interruption Loan Scheme (CBILS).
Many law firms made use of the CBILS facility and many of these loans featured, not only the effective lack of cost associated with interest for the first 12 months, but also capital repayment holiday periods.
Many businesses, including those in the legal services industry, have now seen the holiday period on capital expire and interest requiring to be serviced. This, unsurprisingly, is likely to create cash flow pressures for a number of businesses.
This, alongside a number of other financial pressures created by the current economic climate and the cost of living crisis may have a lasting impact on many firms, and some solicitors may be beginning to consider their options for the future of their firms.
How can Recovery First Assist solicitors facing cashflow issues?
If you have taken out a CBILS loan and are now facing issues with cash flow, Recovery First can assist in a number of ways.
Perhaps you wish to exit a non-profitable market to focus on more lucrative areas of law? You may have considered selling your firm or closing the business completely. Another option may be to restructure or merge with another law firm.
Whichever route you decide to take for your firm, we can assist. Recovery First will ensure the most profitable outcome is achieved.
We offer a positive solution to any law firm by helping them exit any legal market whilst remaining solvent, maintaining cash flow, and ensuring they get the most out of their files.
As well as assisting firms who are going through restructuring, we also assist many firms who are going through the formal insolvency process. We work alongside the insolvency team to come up with the right plan tailored to meet the needs of each specific firm.
An additional benefit being that the firm’s clients not only get a seamless transfer, but they are also married up with a firm specialised in their particular needs.
The unique scheme offered by Recovery First is suitable for law firms and professional advisors, including restructuring and insolvency solicitors, insolvency practitioners and accountants. Our team manage the transfer of files from start to finish, placing case files with an approved law firm so as to protect the integrity of the client’s case.
We will provide you with all the advice and support you need, and we guarantee 100% confidentiality for all clients. If you would like to find out more about Recovery First’s process, feel free to get in touch today with David Johnstone via email (david.johnstone@recoveryfirst.co.uk), telephone 07887796989 or contact Sally Dunscombe at sally.dunscombe@recoveryfirst.co.uk, telephone 07774205870.
