Collections in time of financial crisis

I was talking to Patrick Lamb today, asking his opinion about the impact of today’s financial crisis on law firm fees. His response brought me up short, though it shouldn’t have. He said that restricted credit lines have impacted everyone. After all, even banks won’t loan to other banks overnight funds as was normal before the crisis for fear of the 2nd bank’s failure. If banks won’t loan to one another, how can we expect banks to loan funds to law firms? Thus, collection policies of law firms must be carefully monitored and honored. Collection of billings, high realization rates, is essential to the survival of law firms in today’s environment.


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