As law firms push to collect from their clients and make their budgets this year, some may be considering another option: finding investors willing to buy their uncollected billings for cold, hard cash.

Driven by a need to pay partners, boost reported revenue or offset short-term financial uncertainty, firms in recent years have been experimenting with selling their accounts receivable to third parties. The buyers include banks and other investors—including funds that typically invest in litigation.

Travis Lenkner.