The State Bar Association of North Dakota Winter 2015 Gavel Magazine | Page 37

FIVE TIPS FOR IMPROVING PAYMENT

The best lessons for practicing law are learned in the trenches, in the courtroom, and unfortunately on your balance sheet. A
recent survey by LexisNexis reports law firms consistently have over 40 percent of clients past due at any given time.1 Here are
five key tips to help master the art of getting paid:

1

2

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COMMUNICATE, COMMUNICATE,
COMMUNICATE
Clients are often in stressful or emotional situations
and do not take time to fully review the details or
your agreements. It is imperative you not only explain
and detail your billing practices, but set expectations
for when and how clients should pay you. If you
accept credit card payments, include “payment
guarantee” language in your engagement letters.
This language should directly state the client will
guarantee any payment paid by their credit card to
your firm.
OFFER PAYMENT OPTIONS
When two law firms are equally qualified, clients
may choose to use the firm that offers a more
convenient payment plan. A firm that works with
clients to create an agreed upon payment plan will
increase the likelihood of getting paid, and paid on
time. This can be beneficial in a divorce situation
where funds may be closely monitored or the client
is on a fixed monthly budget. Some firms even offer
on-time payment discounts. For example, if your
client pays within five business days, they receive 10
percent off their bill. You will need to find the right
combination to motivate your particular clients.
BREAK UP WITH YOUR POSTMAN
Consider how you pay your own bills, and which
obligations you prioritize. In 2015, most of us
tend to pay bills either online or automatically.
With the percentage of payments made by check
decreasing at a staggering rate, it is estimated
that 55 percent of all bills will be paid online
or through mobile payment solutions by 2016.2
Does your firm make it convenient to pay or are
your clients still expected to dig up a stamp and
send in a check? A secure link on your website
provides an obvious place for clients to pay.
Better yet, send invoices electronically and
include an online payment link so clients can pay
immediately. There are several options available
that provide secure online payments, designed
specifically for law firms.

4

LEAD BY EXAMPLE

5

COMMUNICATE EVEN MORE

If you consistently bill on time, clients are more
likely to reciprocate. If one month you send out
invoices on the 10th and the next month on the
20th, you are sending a message to your clients
that they can also be flexible on sending their
payment.

Hopefully, your excellent communication during
the new-client phase has set up the appropriate
channels for you to follow up on payments. A
friendly reminder to clients regarding the agreed
upon work and payment schedule goes a long
way. Keep past due clients on your radar and
communicate frequently so they consider your
payment a priority. Never be afraid to ask for
compensation on work you have done.
A merchant account can be the key to resolving
payment and cash flow issues. It provides
flexibility as well as convenience. In addition,
offering credit cards as a payment option has
proven to attract clients and win new business.
Now you can spend less time chasing down
collections and more time practicing law.

ABOUT LAWPAY

The LawPay solution is
designed to correctly
separate earned and
unearned fees to avoid
commingling funds when accepting credit card
payments. More importantly, LawPay contractually
protects client funds by restricting the ability of any
third-party from debiting monies from a Trust or IOLTA
account. LawPay works in partnership with over 90 bar
associations across the country, including the State Bar
Association of North Dakota, to ensure our program is
up-to-date and in compliance.
As a member benefit, law firms save up to 20 percent
off standard credit card fees. If you are currently
accepting credit cards, we encourage you to compare
your current processor with LawPay. To learn more,
contact 866-376-0950 or www.LawPay.com/sband.

Reference:
“LexisNexis Survey: The Discomfort of Collections in Law Firm Billing.”PRWeb. LexisNexis, n.d. Web. 30 Oct. 2014.
“Aite Group: Online, Mobile Bill Payments to Account for 55% of All Bills Paid by US Consumers by 2016.” Thepaypers.com. The Paypers, 18 Sept. 2013. Web. 30 Oct. 2014.

WINTER 2015

37