How banks rate loans to firms; lender's view
Article Abstract:
The recessionary environment is causing banks to apply increased due diligence when considering loans to law firms. Among factors banks are interested in when considering business loans are a firm's strategic planning, malpractice insurance and interpersonal issues. Law firms' capitalization has been a matter of increasing concern to banks. All the financial statistics the bank requests go into its decision about the firm's leverage. Banks and firms have been on differing sides of the liability issue, with partners wanting to minimize their risk.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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The start-up nest egg: what a lawyer needs to open a new practice
Article Abstract:
Attorneys contemplating starting their own practice should be aware both of start-up costs and of those which will need to be met each month. The first decision is whether to lease or sublet an office. Both have pros and cons, and the choice can mean a substantial difference in the amount of money spent. Financial requirements include start-up costs, monthly operating expenses and working capital. The components of each of these three is discussed.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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Financial models can help predict; future plans
Article Abstract:
Financial models can be constructed for use on the computer to help predict according to predetermined formulae and statistics how changing one area of the law firm would impact other areas. Corporations have been using such tools for many years and the personal computer makes them available to smaller businesses. Data needed for a financial model are listed and ways of estimating probabilities and forecasting cash balances are described.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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