There are many great benefits a business loan can provide, but not many people think of using one to pay for the services of a business lawyer. This may be misguided thinking, though, as hiring a lawyer for your business can be one of the best investments you can make.
At their core, business loans are used to fund investments for your business – whether it be in the form of purchasing new equipment or helping with cash flow shortages. But hiring a business lawyer is an investment in your business as well, so financing the cost of that lawyer might be of benefit to you and your business.
By financing the cost of your business lawyer through a business loan, you’ll be able to spread out the cost of the investment, thereby increasing your cash flow and/or allowing you to keep extra cash on hand in case you need it.
For those doubters who still aren’t sure this might be a good idea, let’s take a further look at how obtaining a business loan could be a great way to pay for a business lawyer.
Why would I need a business lawyer?
When most people think of lawyers, they think of lawsuits or criminal cases. Small business owners may not think they need a lawyer, then, unless they are being sued, suing someone else or are involved in a criminal dispute.
But as the saying goes, if you are already involved in a lawsuit, then you’ve waited too long to hire a lawyer. So, what does a business lawyer do?
A business lawyer can help with a myriad of issues, not just those involving a courthouse, such as:
- setting up the structure of your business
- helping with zoning issues for your building
- obtaining copyright and trademarks for your name and/or products
- putting you in a good position to avoid future lawsuits
Lawyers can be great preventative investments for businesses, and not just people you go to once a problem has arisen.
How can I pay for a business lawyer?
Now that you understand the importance of hiring a business lawyer, you may be asking: How much does a business lawyer cost?
The answer, of course, is that it depends.
The cost of a business lawyer mostly depends on the size of your business and the range of services the lawyer will be providing. In most cases, though, small business lawyers might start at $150 per hour for junior attorneys at a firm. Senior partners at much larger law firms (who often work for much, much larger companies) may charge up to $1,000 per hour.
Most business lawyers will require you to sign paperwork that lays out what their hourly fees are, if there are any other charges for extra services, and how/when you are required to make payments. You may even be required to pay an upfront cost called a retainer to hire the business lawyer.
To pay for the cost of a business lawyer, you could turn to a few common ways to pay business expenses.
The first would be to use cash. If you have a good amount of reserve cash in the bank, or if you have a healthy enough cash flow, you could decide to work the business lawyer fees into your operating budget.
A second option would be to charge the fees for your business lawyer to a business credit card. There are some benefits to doing this. One would be that it would help with your cash flow situation since you would be able to pay down the business lawyer fees over a longer period. Another would be that you might earn perks such as cashback or other rewards from the credit card company.
However, one downside to financing your business lawyer fees to a credit card is you will be charged high-interest rates, which would effectively increase the cost of your business lawyer in the long run.
Pay a business lawyer with a small business loan
Another great option for paying business lawyer fees is by obtaining a small business loan. Much like a credit card, a small business loan would allow you to pay for your business lawyer over a longer period.
There are three main reasons why using a small business loan would make more sense than charging to a credit card:
- Small business loans are term loans, meaning you borrow a set amount of money and have a set amount of time to pay the money back. This not only allows there to be an end in sight to the monthly payments, but it also allows you to budget this cost into your expenses.
- Small business loans have much lower interest rates than business credit cards. Small business loans with Camino Financial, for example, have monthly interest rates as low as 1% to 2.6%. This would greatly reduce the extra money you’ll pay for financing the costs of your business lawyer.
- Small business loans don’t clog up your credit. Not only do they not take up the cash that you have on hand, but they also don’t max out your business credit cards. By taking a small business loan, you will still have the available credit on your credit card to use for other purchases you might need.
Do You Need a Business Lawyer?
You may not instantly think of financing the costs of a business lawyer, but there are a lot of benefits of doing so. From increasing cash flow to being able to pay the sometimes high cost of lawyer fees over a longer period, financing could be a great option for your business.
And when you’re thinking of financing the cost of your business lawyer, know that a small business loan could perhaps be your most attractive option. With lower interest rates and better terms than business credit cards, small business loans are a great way to finance any business investment, including a business lawyer.
Unlike loans from other institutions, Camino Financial small business loans can be used to pay a business lawyer because our loans are working capital loans, which means they are used to pay operating expenses. And lawyer fees are a definite part of operating expenses for a business.
At Camino Financial, our goal is to live up to our motto “No Business Left Behind”. We do that by offering the best financial products for small businesses, and by providing insight, information and education to small business owners just like you.
Request a quote for a business loan today, and you’ll be well on your way to moving your business forward.