According to the latest statistics, India Inc’s legal expenses jump 9 % to Rs 38,754 crore in FY 20. On a year-on-year basis, legal and other professional expenses went up just about 4%. Listed companies have spent a fair share on professional fees, regulatory filings, penalties, and general stamp duty, besides on litigations and arbitrations, and expansion in newer geographies.
To cater to such needs, LegalPay has ideated and successfully developed the world’s first pay-later product in the legal services domain “LegalPay MAX”. LegalPay MAX is an online ecosystem where Law Firms can provide their legal services to businesses through our closed-loop financing platform. The Platform provides first-of-kind deferred payment services to businesses to pay off their legal services dues and other professional fees. This service ensures a win-win situation for both lawyers – Law Firms where they can shift their collection risk on LegalPay MAX. On the other hand, businesses can get a credit line of up to INR 50,00,000/- to pay off their legal expenses in different installments. Businesses can also avail of cashback of up to 7% on their legal expenses.
Businesses require a wide variety of professional and legal services from law firms. For example, early-stage start-ups may require documentation of Share Acquisition deals, Shareholder’s Agreements, Share Purchase Agreements, Employment Agreements etc. An erroneous agreement drafted during the incubation phase of a start-up or any business is likely to result in long-drawn disputes later. To avoid the same, founders look for the best legal services. However, due to cash-flow issues, start-ups have to settle for less and become prone to unforeseen risks. LegalPay MAX provides a no-cost EMI embedded credit line that decouples payment from service.
Since a company cannot survive on a single product, a product cannot survive on a single service. LegalPay MAX is one-stop platform that helps in providing pay-later finance to businesses. The platform has various add-on features such as free invoice-generation software which resembles the standards adopted by the legal industry. The platform also provides a user-interactive dashboard and user-friendly analytics, both businesses and law firms not only forge a transactional relationship but a lifetime-long value addition to their business practice.
LegalPay MAX provides a flexible, quick approval process to businesses availing of its credit facility. Whereas a brick-and-mortar traditional banks adopt a more stringent underwriting process and generally loan out at uncomfortable terms, LegalPay MAX offers an interest-free deferred payment solution to finance legal expenses.
While LegalPay has successfully set its foot in the Litigation Funding market, a vacuum exists for companies who are in dire need of finance. Given that, credit-embedded financing is only gaining traction in India’s digital economy, it was only a matter of time that it would follow in the legal industry as well. LegalPay is proud to be the pioneer in introducing a product that fulfills the gap and the need seldom realized in the legal industry.
As a tech-driven platform, LegalPay believes in the idea of making access to justice easier and hassle-free. Our sophisticated AI-driven platform has already made the tedious process of diligence and underwriting quick and seamless. Now, with the revolutionary pay-later “LegalPay MAX”, we are making point-in-time borrowing with flexible no-cost repayment schedules. LegalPay Max will allow business to supercharge their purchasing power without paying for any invoices immediately. Such payments can be set over a period of time. The credit line comes with a NO CHARGE interest if the installments are paid within the timeframe.