This is the type of legal action that Fundbox will be happy to take part in. According to an announcement made Thursday (April 16) by the cash flow management solutions provider, Fundbox has struck up a partnership with cloud-based law sector management platform Clio. The collaboration will bring Fundbox’s service into the legal industry, providing cash flow management solutions to legal firms.
According to reports, cash flow is one of the harshest pain points for legal firms. Lexis Nexis research found that on average, firms wait 83 days to see their invoices settled. More than $1 billion of those invoices are issued over Clio’s platform, the firms said.
With their partnership, Fundbox will make its tools available to Clio clients, allowing these firms to instantly clear outstanding invoices. For Fundbox, the firm will gain access to valuable data flowing in from Clio.
“The time it takes to get paid is a huge issue among small- and medium-sized law firms,” said Fundbox CEO Eyal Shinar. “Given the rich data that sits in the practice management system, we are able to leverage our technology to quickly put the firm back in control of their cash flow.”
Clio CEO and Co-Founder Jack Newton echoed the need for cash flow management solutions in the legal sector. “Many attorneys, particularly those in solo and small firms, can be hit hard by the cashflow gap between issuing an invoice and collecting payment,” he said.
Clio business customers will be able to access working capital based on their invoice history and workplace health.
Fundbox’s partnership is the latest move that expands the company. Late last month the firm revealed a $40 million investment round led by General Catalyst Partners. Fundbox said the new backing will be used to increase the flow and volume of cash advances offered to businesses that need to quickly settle their invoices.
At the time, Shinar said that the company had grown more than 300 percent quarter-over-quarter in the last 18 months.