Law firms have seasonal cashflow patterns, both in terms of revenues as well as expenses. Cashflow is particularly constrained during the December-January holiday season on account of lower billing capacity, court closures, bonus payments and decreased fee collection. Cashflow can also become strained during tax season; with SARS penalties often exceeding the interest applicable on short-term financing solutions.
The Taurus Seasonal Cashflow Booster (SCB) is a working capital facility to help law firms manage their cash flow over seasonal lulls in productivity, often compounded by higher cashflow demands. The loan is repayable over subsequent months. The result is a smoother cashflow pattern for the law firm and an easier time sleeping for managing partners.