Adopting the DMA Solution can have a major impact on your law firm's financial performance. 

The average AmLaw 100 firm advanced an estimated $50.8 million last year on behalf of client-specific legal matters.  With an average float of between 90 and 120 days, that resulted in over $16 Million of partner capital or firm credit outstanding every business day of the year.

MorePartnerIncome.Com recently referenced the DMA Solution in its blog, and stated:  "Any law firm funds tied up in uncollected funds comes out of the pockets of partners."   We agree - if that Average AmLaw 100 firm had 225 partners, each partner had nearly $62,000 of his or her own money tied up within the firm to fund those client loans.  If credit lines were used, the firm absorbed an interest cost of approximately $775,000 - again funded by the partners.  By comparison, would any firm absorb three-quarters of a million dollars in photocopy costs?

Once the DMA Solution is adopted, the money currently outstanding in the form of hard disbursement loans to clients will be returned to the firm within a 90 - 120 day period.  That money will no longer be needed to fund new disbursements, because future disbursements are funded by the dedicated disbursement line-of-credit.  The clients that choose to use this dedicated line are paying for the cost of funds.  The money that is returned to the firm stays in the firm.  In the first year, adopting the DMA Solution can generate additional capital equivalent to a one-time gross revenue increase of more than 12%.

As Steve Henry* stated in his presentation at the Law Firm CFO Institute, "You can use that capital for any good purpose that you may have had on the books, that you are deferring because you are trying to fund these disbursements all the time." 

* See Steve Henry's complete comments on the Managing Partner Testimonial page.