The Financial Challenge Facing Law Firms Today
Law firms excel at delivering exceptional legal work yet struggle to convert that expertise into cash efficiently. Rising debtor days, extended lock-up periods exceeding 100 days, and mounting write-offs create significant financial pressure. Research confirms it's "hard to think of another sector worse at getting clients to pay."
The root cause isn't legal capability—it's weak process governance, delayed billing cycles, and cultural resistance to financial discipline. Work is completed rapidly, but billing delays, aged WIP, and unstructured collections practices trap millions in unrealised revenue.
100+
Days Lock-Up
Average for underperforming firms
14-18%
Revenue Lost
Through write-downs and write-offs