Clients Prefer the PTFM System over Retainers.
The overwhelming majority of clients believe it is reasonable for an attorney to request a retainer for out-of-pocket costs. In other words, contrary to the misconceptions of most attorneys (and patent attorneys in particular), clients do not believe it is counsel’s obligation to fund hard costs for the client. This is true even if the attorney has historically provided this service free of charge. What clients don’t like is the inconvenience and accounting headaches associated with providing retainers, particularly where the need is ongoing. As you might expect, when given the option between providing a retainer and having their costs funded using the PTFM system, clients overwhelmingly prefer the PTFM system. Over eight years of experience, many thousands of clients and tens of thousands of PTFM transactions has established that the objection rate of clients to the PTFM system is less than 1% when imposed on clients as a requirement unless a retainer is provided. Virtually no clients take the option of providing a retainer to avoid the PTFM charges. It just isn’t worth their time or money.

Cash Management and Cash Flow Headaches are Eliminated.
Almost every line of credit has a mandatory resting period each year. This often means a law firm has extreme cycles in cash reserves, as early in the year it borrows heavily to fund out-of-pocket expenses and then pays off the line as the year progresses and rests it as required. On the other hand, PTFM’s dedicated, evergreen line of credit system virtually eliminates your cash flow and cash management headaches. Funding for out-of-pocket is out-of-sight and out-of-mind, quietly working to fund your client costs with no hassles or extra work for your clients or accounting staff. Even better yet, it pays for itself, allowing your firm to invest its hard-earned money in more productive ways.

Firm Finances are Easier to Understand and Manage.
The saw-tooth pattern on your line of credit and borrowing needs are a major source of stress to the CFO and firm management, not to mention partners that do not understand the nuances of firm finances. This borrowing pattern also obscures the firm’s true financial performance by mixing up the constantly fluctuating out-of-pocket funding requirements with borrowing to fund operations. By separating the two lines using the PTFM system, your firm’s actual financial performance is more transparent and therefore easier to follow and manage.

The Costs of Funding Cash Disbursements are Fairly Allocated between Clients.
Currently, in most law firms the costs incurred to fund out-of-pocket costs are under-allocated to clients requiring substantial out-of-pocket funding, and over-allocated to clients requiring little or no funding for out-of-pocket costs. By properly allocating these costs to each matter and client, all clients get treated fairly.

Your Firm’s Capital is Put to Better Use.
If your clients don’t have an expectation that your firm will fund out-of-pocket costs, then any capital your firm has tied up to fund these costs could be put to better use, or returned to shareholders. Experience has shown over many thousands of clients and tens of thousands of transactions that clients do not object to paying the costs fairly attributed to financing out-of-pocket costs for them. Accordingly, your firm can let your clients do the funding and save its money for much better capital expenditures, such as acquiring software that will allow your firm to provide better client service.

Your Firm Can Stop Throwing Tens of Thousands of Dollars Out the Window Each and Every Year.
Very few, if any, firms would give away tens of thousands of dollars worth of photocopies, scanning charges or long distance telephone charges, particularly where these are hard costs such as the cost of financing disbursements. The vast majority of clients routinely pay these costs without complaint or even notice. Why throw hard cash out the window when the annual savings could be used for much needed upgrades to equipment or infrastructure, or simply just to pay in bonuses for staff or lawyers? For example, in most law firms, the savings on out-of-pocket costs is enough to buy new computers, mobile phones or PDA’s for virtually every member of the law firm each and every year. Over a period of five years of more, the savings are enormous.