The waiting time for payment for the 100 highest-ranked firms was 19 per cent longer than the average for all UK law firms, research from Edward Drummond has revealed that. ‘A four-month wait to see cash in the bank is a long time – even for the largest law firms,’ said Edward Drummond partner Gareth Ward. ‘Reducing debtor days can be particularly difficult for those firms involved in long-running cases, in areas such as banking litigation, family or personal injury work.’

Waiting period increasing

The bad news is that the waiting period for payment has jumped by 30 per cent since the financial crisis – 100 days in 2007. ‘As firms expand, it’s vital that they keep tabs on invoicing procedures across different areas of the business. Ensuring cash-flow is on a firm footing is essential for maintaining good financial health,’ added Mr Ward.

Streamlining proceedures

‘Many Top 100 firms have invested in streamlining their credit facilities and in more sophisticated matter management software, which should help speed up debt collection,’ explained Mr Ward.