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Referrals
Make the Grade at
Professional Services Firms
Law Firms Increasingly Take Part in Securing Professional Finance Agency Representation for their Clients
Trusted advisors often minimize the importance of their role in leading clients to the right resources. Typically, clients will look to a trusted advisor, such as their legal firm, for advice in tackling challenging business issues, including financial ones. In many cases, however, they expect their law firm to assist in solving business problems and help consummate deals.
When your client is lacking topical expertise or industry contacts, a referral to a qualified or dependable contact translates into a significant value-add. It's the first, and arguably the most, important step in getting your client's business on the right track, headed toward success.
Referring, Not Consulting
With all the attention on accounting firms and law firms and their consulting businesses, there has been much discussion on how professional services firms can best provide critical advice to clients.
As Rich Miller wrote in a recent Business Week article, "The implosion of Enron Corp. in a mushroom cloud of scandal has profoundly rocked Americans' perceptions of financial markets, accounting practices, and corporate ethics." [See enclosed Business Week article, "A new Credit Crunch.]
Accounting & law firms that previously had been referring lenders on their own or consulting directly for these services are taking another look at these practices and in many cases are looking for alternative solutions such as professional finance agency representation. Leaner law firms that don't have an in-house financial team or experience, also appreciate the benefits of having access to an outside agency qualified to help their clients navigate today's turbulent waters.
Closing the GAAP Wins the Day for Lenders
In the aftermath of Enron, balance sheets and financial deals are being scrutinized more closely than ever before. In his Business Week article, Miller says "Worried that other Enrons are lurking in the shadows and stunned by the meltdown of such high-profile companies as Kmart Corp. Investors are treading cautiously. But banks are getting stingier, too. Stung by the demise of Enron and other high-profile bankruptcies, they're tightening lending terms and cutting off companies that don't pass muster."
Law firms and now many other professional services firms are considering referrals to credible agencies as the solution to helping their clients with complex financial transactions. As a result, professional services firms are increasingly partnering with finance agencies like Primagency . Whether it's a case where it appears that financing will be difficult to obtain, or if the client simply wants to increase the chances of heading off an unfavorable outcome, a debt financing agency, like Primagency, is a sound alternative.
A national finance agency provides an additional level of due diligence by going beyond generally accepted accounting principles (GAAP) and evaluating the collateral assets and analyzing cash flow. This process accurately evaluates the potential borrower's financial health, adding value to both the lender and the law firm. Along with decreasing liability and increasing the likelihood of success, the benefits of connecting clients to an established brokerage agency includes leveraging a deeper lender network and stronger purchasing power to secure financing with optimal terms.
No one knows your clients' business needs better than you, their law firm and trusted advisor. With a long-term partnership and first-hand understanding of their history and future goals, you are best qualified to evaluate your clients' situations and how to best satisfy their needs. A national finance agency, however, can be an important component in your business advisory arsenal moving forward.