Industry
The deposit patterns, seasonality and timing that decide how funders read a file from a Canadian business in law firms.
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Short answer: Funders read only a law firm's operating account, never client trust funds, which law society rules keep separate. They look at collection timing on hourly accounts, disbursements fronted for clients and associate payroll. Common uses are bridging slow collections on large files, technology and hiring ahead of new work.
Key facts
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Law firms earn fees on a mix of retainers, hourly billing and flat-fee files, with trust accounting rules that separate client money from firm money.
Real estate practices follow housing-market seasons; litigation follows court calendars; corporate work clusters at year-end.
A short advance suits a defined hire or system. Only operating-account deposits are relevant; trust money is never firm revenue.
A small litigation and real estate law firm depositing about $110,000 a month asks for $35,000 for practice-management software and a new associate. At a 1.2 factor the payback is $42,000, a cost of $7,000. Over roughly 6 months that is about $333 per business day, or close to 6% of monthly deposits.
Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.
A firm's operating account receives transfers from trust when fees are earned and billed, plus payments on hourly accounts. Rent, payroll and research subscriptions are fixed. Disbursements for court fees and experts are paid out and recovered later. A reviewer reads only firm money.
Canadian law firms are regulated by provincial law societies with strict trust accounting rules. Any financing must be repaid from firm operating funds, never trust funds.
Whatever the trade, the review is built on the business's own bank statements: how much arrives, how steadily, what is left after fixed costs and how the account is managed through a slower stretch. A short note that names your busiest and quietest months, any one-off deposits and what the money is for usually answers the follow-up questions before they are asked.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
No. Trust funds belong to clients. Only operating-account revenue is read.
Yes. Follow your law society's rules on financing and trust accounts.
Yes, sized to expected billings.
Educational information only. It is not legal, tax or accounting advice.
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