How a Financial Institution Can Be a Partner in Your Law Firm’s Growth with Todd Hamblet
Mar 25, 2021
Starting your own business is one thing, but maintaining it and making it grow is a whole different matter. You’ll encounter all sorts of problems, and it can be challenging to face them unsupported. It’s essential to ensure someone’s got your back. That’s where a financial institution comes in.
In this episode, Todd Hamblet shares how a financial institution can be your partner in growing your law firm. He also talks about common problems small businesses have to face, like managing cash flow and accessing capital.
If you want to know how partnering with a financial institution can help you grow your law firm, then tune in to this episode.
Here are three reasons why you should listen to this episode:
- Discover how to solve problems about capital and cash flow.
- Learn about the importance of technology in your business.
- Find out how having a financial institution as a partner can help you grow your law firm.
- This episode is sponsored by LawFundAR. The easy and simple way to add payment plans to your practice with no risk to you. Get paid up front and still add the value of payment plan options for your clients. Learn more at lawfundar.com/profitwithlaw.
- This episode is sponsored by NOTA powered by M&T Bank. You went to law school to be a lawyer, not an accountant. Take advantage of Nota - a no-cost IOLTA management tool that helps solo and small law firms track client funds down to the penny. Enjoy peace of mind with one-click reconciliation, automated transaction alerts, and real-time bank data. Visit trustnota.com to learn more. Terms and conditions may apply.
- This episode is sponsored by LegalEase Marketing. No buzzwords. No jargon. No B.S. Just results to make your law firm grow, that’s LegalEase Marketing. LegalEase Marketing is a full-service marketing agency for lawyers by legal experts and digital advertising specialists. Our goal? To help your firm stand out in a competitive marketplace with personalized solutions to help your law firm attract the clients you want backed by the systems to make it all work correctly. Visit profitwithlaw.com/legalease to learn more.
- Connect with Todd: LinkedIn
- Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine by Mike Michalowicz
Todd Hamblet’s Career
- Todd spent the first fourteen years of his career in big law firms.
- In 2014, he decided to pursue an in-house opportunity and became Uber’s first corporate lawyer.
- In 2018, Todd left Uber to look for his next opportunity. Ideally, he wanted it outside of the sharing economy space.
- As a financial institution, Fundbox’s mission to help small businesses access capital and grow caught his attention, and he joined them in 2019.
Todd: “And here we are, it's been quite an adventure over the last almost two years at this point with 2020 being a very, I think, challenging, but eye-opening year for me.”
Options Available for Small Business
- There are a lot of resources small businesses can use.
- Fundbox started as a capital access provider. However, its long-term plan is to cement itself as a platform for small businesses that want partners.
Todd: “We do want to try to develop relationships with our customers, so that we can be a trusted partner, so that we can provide access to capital.”
- One of the problems Fundbox tries to solve is the cash flow locked up in invoices.
- Solving this means small businesses get paid sooner or get more capital to continue growing their business.
The Role of Technology
- Fundbox stores customer data, so technology is essential to their operations. They take the necessary precautions, being cautious with privacy laws and regulations.
- Todd says they use technology to help small businesses optimize their marketing approach.
- Fundamentally, they use the data for AI training. But Fundbox wanted to create more valuable products and services for small businesses.
- The information the data gives allows small businesses to improve. They can modify their practices, focus on areas of improvement, and form effective marketing strategies.
Addressing Issues on Cash Flow
- Todd notices small businesses tend to lean on their personal credit cards.
- The thought process is to use their personal credit card and pay themselves later.
Todd: “You know, at a pain point in a cash flow cycle, small businesses will tend to lean on their personal credit… They'll think, ‘It's easier to use my personal credit card, and I'll just pay myself back later.’”
Moshe: “You're, you bring up a really good point, because we're kind of, as small business owners, are kind of backed into the corner with using our personal credit. You know, banks don't want to give us credit on the business until we have a track record of showing profitability.”
- Fundbox helps small businesses distinguish between business finances and personal finances.
- It aims to empower small businesses, stopping them from making the mistake of using personal finances for their business.
Using Data and Technology
- With data and technology, Fundbox can make predictions in the market.
- Todd believes that one of the advantages of technology is that you can continually review your data.
- Small business owners don’t have to apply for a new loan to increase their credit; they can do that through technology.
- Technology helps small businesses grow. Through it, customers can be proactive in growing their businesses.
The Mission of Fundbox
Todd: “The mission is really to how do we help power the small business economy and break down some of the barriers that prevent small businesses from moving forward.”
- They turned themselves into a Paycheck Protection Program (PPP) lender in just two weeks using their technological expertise.
- They have done so much because of their mission: to help small businesses survive and thrive.
Being a Partner Financial Institution to Small Businesses
- Fundbox has learned that customers value having a partner.
- Customers don’t want an arm’s length relationship. They want partners who can advise them, give them tools, and share some market intelligence.
- Through customer feedback, Fundbox can check solutions for customer complaints.
- As a financial institution, Fundbox is looking for strategic partnerships to provide a broader range of services to their customers.
Todd: “If we have a partner who's really good at something we don't do, we want to make that available to small businesses as well.”
Todd’s Tip for Law Firm Owners
- Focus on what you’re good at and what pays the bills.
- There are many providers out there who have tools you can use.
- Everyone should be smart about how they spend their time.
Todd: “I would just encourage folks to be smart about where you spend your time, and do your best to focus on what you're good at, and what generates revenue for you, which is being a top notch lawyer.”
Todd Hamblet is the Chief Legal Officer and Corporate Secretary at Fundbox. As such, he oversees all legal and regulatory matters for Fundbox.
Before Todd joined Fundbox, he was Assistant General Counsel for Global Corporate Transactions and Deputy Secretary at Uber. Early in his career, Mr. Todd practiced law at leading international law firms, like Covington & Burling LLP.
Mr. Todd is skilled in all corporate law, including securities issuances, M&A. He also has expertise in joint ventures, including cross-border ventures, tender offers, and IPO-preparation, among many others.
You can connect with him through LinkedIn.
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