How can financial services companies help legal firms with costs?

How can financial services companies help legal firms with costs?

Recent research by PwC found that reducing costs has leapt from being last in a long list of priorities for legal firms to number four – ahead of critical challenges including reducing cyber threats.

This might be down to the fact that a recent survey by the Law Society found that firms are forecasting a 10-20 per cent drop in revenue for the 2020/21 financial year. And that’s just the start.

Without taking into account pressures on corporate balance sheets, the pandemic has seen a negative effect on families’ finances leading to many clients struggling to pay the fees arising from personal legal action.

Firms can offer their own solutions to help clients with funding cases. If cashflow allows, deferred payments with an uplift in charging rates is an option, as is a “conditional no win, no fee” arrangement.

These approaches can help customers, but of course pass risk and cashflow challenges directly to solicitors’ practices. So if costs and cashflow are going to be an issue in the coming months and years, how can the financial sector help?

Deep knowledge of the area you operate in is key for a financial service provider to provide a credible solution for firms and their clients. They have to be prepared to take the time to understand the dynamic of the legal sector. Firms need to understand both the opportunities, and the needs, creating solutions and crafting products that properly address them.

The financial services sector has traditionally been poor in designing products that work for law firms. Many make the mistake of trying to shoehorn an existing lending approach into the legal sector. This approach doesn’t work for either busy lawyers or their clients.

A consultative approach benefits everyone –‘we’ve got a product – please sell it’ won’t wash. You need to be able to demonstrate that you understand the issues and have created a credible solution, and in the process overcome any natural aversions.

When we designed our first lending product in the probate space – Inheritance Advance, we spent over six months consulting with law firms, specialist probate services and ‘boutique’ firms to understand them, their business and the needs of beneficiaries. Their input was invaluable and instrumental in shaping our offering. Our IHT Loan followed shortly afterwards and we’re now on the verge of launching our third product to help people fund contentious probate cases and again we’ve consulted with some of the largest firms in this space.

Our recent consumer research told us that 50 per cent of people would expect their solicitor to be aware of and advise on products that can help with contentious probate, probate delays, or with the need to obtain an inheritance early.

Flexibility is also key for complex cases. Every situation is nuanced and as a lender it’s important to adapt to a situation that might be a bit of a ‘curve-ball’. Ideally lenders can focus on fundamentals and adapt their product to meet the needs of the circumstance. Traditional brokers can’t offer this flexibility and we’ve proven it’s really useful to be able to offer solutions rather than tick-box criteria.

By offering their clients credible solutions, solicitors improve their cashflow and service levels, and that in turn improves their clients’ experience of the firm.

To find out more about Tower Street Finance visit www.towerstreetfinance.co.uk, call 0343 504 7100 or email [email protected]

This article was submitted to be published by Tower Street Finance as part of their advertising agreement with Today’s Wills and Probate. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.

Tower Street Finance

https://towerstreetfinance.co.uk/

 

 

 

 

 

 

 

 

 

Tower Street Finance (TSF) was set up by an experienced management team who saw a need for relevant, accessible financial products which benefit administrators of estates, executors and beneficiaries.

We are passionate about using insight, data and our considerable experience to help customers with innovative products and services, including those who may be in financial difficulty.

We currently have four products which are aimed at the inheritance market and they all have a common DNA. There are:

  • No credit checks
  • No risk or personal liability
  • No charge over property
  • No monthly repayments
  • No requirement for a Will

IHT Loan

The IHT Loan can help when estates are effectively ‘locked’ because the executor needs to pay the IHT to get the Grant, but needs the Grant to realise the assets to pay the IHT.

It’s taken out by the executor/personal representative and can solve the problem. The money is used to pay HMRC and it’s a way of meeting the IHT liability to unlock the estate with no risk or need to take out a personal loan/bridging loan.

Inheritance Advance (winner of Innovation of the Year, British Wills and Probate Awards 2020)

An Inheritance Advance allows beneficiaries to access a proportion of their inheritance sooner, with the Advance repaid out of the proceeds of their inheritance. This solves the problem of beneficiaries asking when they’ll be able to get their money and you having to explain that the process is complicated and lengthy.

Again, there’s no risk – if another Will emerges or assets take longer to sell or sell for less than anticipated, or another debt is discovered, we take the risk.

Inheritance Dispute Funding (IDF)

Inheritance Dispute Funding helps people who want to dispute a will but don’t have the money to fund the legal bills. We know that one in four people would dispute an inheritance if they felt it was unfairly distributed.

Contesting a will can cost up to £5k in upfront costs and there’s no guarantee your case will be taken on – with IDF the solicitor gives their opinion on the case and win or lose – we take the risk.

We pay the costs and then they’re repaid from the estate proceeds.

Estate Expense Funding (EEF)

Estate Expense Funding is for executors who face costs while they’re dealing with their responsibilities of administering an estate. These can be unexpected but we can help cover the costs until the inheritance is released

Executors could be liable for expenses such as funeral costs, professional fees, house and garden maintenance and more.

We pay the costs and then they’re repaid from the estate proceeds

Key Services

Key Contact

Richard (Dicky) Davies, Business Development Director
Tel: 07702 559051
Email: [email protected]
LinkedIn Acc: Dicky Davies
Facebook: Tower Street Finance
Instagram: Tower Street Finance

Address:

46 Tower Street
Harrogate
North Yorkshire
HG1 1HS

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