Payday Every Day
One reason our program works so well is that we keep costs down by automating as much of the process as we can. When a lawyer opens his or her clients' first accounts with us, the lawyer may be paid by paper checks for a few months. The process will then switch to ACH transactions as the lawyer's portfolio builds. Since the ACH process works through "batches," the frequency of the automated payments increases as the lawyer's portfolio builds. It is possible, even probable, that eventually the lawyer will receive payment of hundreds or even thousands of dollars every business day. Every solo and small-firm practitioner can appreciate the value of this.
The optimal size of a portfolio of clients funded through GLF is dependent upon many factors. If a client can pay, that person probably should not be funded through GLF. However, it would be a mistake to think GLF is a last resort for marginal clients. Many very good and honest people can’t get a large (> $3,000) unsecured loan from a bank, or if they can, the interest rate and fees are much higher than the terms offered by GLF. Also, many people would rather not spend a large amount of cash at once even if they have it. Finally, some people will just prefer the convenience of the GLF payment plan done quickly right in the lawyer’s office. This is particularly true of persons co-signing a note.
And there are very good reasons for a lawyer to spread his or her income over time. There are obvious tax benefits. Also, perhaps the lawyer is close to retirement or knows he or she wants to take a government or in-house job at some point – a payment stream for 3 years for past work certainly would help that transition. And all small practitioners know how difficult it is to take a vacation. A stream of income while you are out of the office takes the stress away from vacations.