Case Closed: Financing Legal Fees Grows Business
Founded by attorneys in 2018, OpenWallet (OW) helps attorneys retain nearly every client by providing up-front financing for legal fees with a fast and easy process and consumer-friendly collections.
Not only is OW in a very niche industry, they were financing large amounts of small balances – an average outstanding loan of $2,200 per client. They had exhausted options with their existing capital partner. Other lenders misunderstood their unique approach as consumer financing and declined to fund them, causing OW to pause offering new loans for six months. Broker Dan Glick referred them to nFusion Capital.
OW had smartly structured their financing as a commercial loan to the law firms, not consumer lending. Our team took the time to dig in, understand their business, and get creative with a $15 million asset based loan through our Lender Finance program. In a unique move, not only did we finance the receivables, but we included the profit margin up front.
OW is open for business once again, reaching out to thousands of law firms who are then offering financing for their services to clients. But best result is that now people who don’t have cash but who need legal services – divorce, DUI defense or estate planning – are able to meet their legal needs immediately and pay for it over time.
“OW’s operation, while fairly simple in appearance, is very complex operationally with many moving parts. nFusion differentiated itself by patiently analyzing the company’s’ operations, documentation, and underlying collateral performance, utilizing the quality data generated by OW’s operations. They worked with OW to create reports from that data that are now being used to create a borrowing base that provides significantly more availability than competitive lenders could. It is an absolute pleasure to work with a team of lenders who understand business, are patient, creative and resilient, and are deal makers because they care and, they are kind people. Their attention to detail created a great sense of comfort for the OW team.”
Dan Glick, Glick Financial Solutions