Legaltech is also launching its own capital advance program as it enters the corporate market.
Clio is entering the fintech side of the legal business, becoming the latest Canadian company to partner with San Francisco-based buy now, pay later (BNPL) technology company Affirm.
Clio says its new offerings aim to address the “inconsistent financial model” in the legal industry.
The partnership will form the basis of Clio's own BNPL offering, which gives the law firm's clients the ability to pay their legal fees over a specified period of time in monthly or bi-weekly installments. Clio also launched its proprietary capital advance program, Clio Capital, to provide law firms with quick access to funds to help manage their cash flow or invest in growth opportunities.
The BNPL and Clio Capital offerings are built directly into Clio's payment and legal practice management software in the US, with other regions to follow.
Burnaby, B.C.-based LegalTech says the proposals aim to address the “inconsistent financial model” in the legal industry. Firms often require large upfront payments to get started, but clients often do not have immediate access to these funds, even if they expect payments in the future.
“Financial stress is one of the most persistent challenges facing law firms and their clients,” AJ Axelrod, Clio vice president of payments and financial services, said in a statement. “These innovations reduce administrative burdens, strengthen client relationships and enable firms to operate with greater stability and scale.”
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Confirm entered the Canadian market in 2021 when it acquired Canadian BNPL firm PayBright for C$340 million. This year, the company has entered into several partnerships to expand its presence in the country, including with Shopify And FreshBooks.
Clio announced its FinTech offerings on the second day of the Legal Technology Conference in Boston. ClioConlast week. Clio opened the conference opening a corporate division to support large law firms and corporate legal departments, this is the customer base Clio has been targeting for some time. The new suite consists of artificial intelligence (AI) offerings resulting from Clio's acquisition of ShareDo And vLex this year.
Image courtesy of Clio.
