Business Legal Advice in Colombia: A Transparent Alternative to Hourly Billing

Setting fair and transparent fees is one of the central challenges for law firms seeking to deliver genuine value to their clients. Many firms believe the solution lies in the traditional hourly billing model, which at first glance seems reasonable—charging for time spent appears fair and straightforward. But is that really the case?

The Limits of the Traditional Hourly Billing Model

Although hourly billing seems simple, it has a structural flaw: it does not necessarily encourage efficiency or reflect the real value of continuous legal support.

In practice, when a business hires a lawyer, it is not purchasing hours—it is seeking results, guidance, and timely problem-solving.

The problem is that the traditional model is misaligned with these expectations. A system based on hours may create incentives for longer work, while clients have no real way to verify how long a task actually took. Transparency becomes dependent on the firm’s internal practices.

Moreover, even with the best intentions, the model can distort how clients perceive value. If an experienced lawyer solves a complex issue in a short amount of time, the hourly framework may undervalue that result—when, in reality, expertise and efficiency are precisely what the client is seeking.

A New Approach: Comprehensive Business Legal Advice in Colombia Through a Legal Credit System

How can firms balance clarity, efficiency, and value? One solution is adopting an alternative and more predictable model: legal credits.

 

How Does the Legal Credit Model Work?

Each credit represents a legal task, classified according to its complexity—for example, reviewing a simple contract, preparing a mid-level legal opinion, or participating in a complex negotiation.

Naturally, the more complex the task, the more credits it requires. This allows the system to reflect the level of expertise involved rather than the number of hours consumed.

Under the traditional hourly rate model, greater complexity typically means more hours of work. Yet this assumption doesn’t always hold. Experienced lawyers are often able to handle difficult matters more efficiently due to years of specialization—and that efficiency is part of the value clients expect.

The credit model resolves this contradiction. Clients know in advance the complexity of the task and how many credits it will require, giving them greater control, transparency, and predictability over their legal expenses.

Advantages of Continuous Specialized Legal Support for Your Company

No company operates independently from legal obligations. Legal advice is required sooner or later—whether to address a specific issue or as part of a company’s ongoing structure. This is where continuous legal support through a legal credit system becomes a valuable resource, allowing companies to address both day-to-day legal needs and unforeseen issues that arise in the course of business operations.

The main advantages of this model include:

Predictability and Transparency

Companies know in advance how many legal credits they have available and how those credits may be used based on their specific needs. This provides clarity and eliminates unexpected costs.

Comprehensive Legal Support

Business law is inherently cross-functional, encompassing corporate, commercial, labor, and regulatory matters. A legal service that understands the company as an integrated whole can provide tailored legal guidance aligned with the company’s operational reality.

Reduced administrative costs

The relevant question is not whether a company will need legal assistance, but when—and at what cost. Under a legal credit model, companies benefit from cost certainty and ongoing access to legal support, without the unpredictability of hourly billing or the fixed expenses associated with maintaining in-house legal staff.

Why Companies Prefer This Model

Companies recognize the importance of legal support for sustainable business development. However, the cost of hiring in-house counsel is often high, and hourly billing structures can be difficult to predict.

A legal credit-based model addresses both concerns by offering clear pricing and continuous access to specialized legal support, allowing companies to operate with greater certainty and focus on their core business activities.

How the Legal Plans Work at JG Lawyers

At JG Lawyers, we have developed this model to provide a fair, transparent, and value-driven legal service. We recognize that legal needs vary depending on the nature, size, and stage of each company. For this reason, we offer three comprehensive business legal support plans, allowing each client to choose the structure that best aligns with their operational reality.

Essential Plan

Designed for entrepreneurs, independent professionals, and small businesses that require recurring legal support in business-related matters.

This plan includes legal credits applicable to consultations, contract review and adjustments, company incorporation, basic tax guidance, and regulatory advice.

It is ideal for companies seeking legal order and preventive support without unexpected costs.

Advanced Plan

Designed for growing companies or businesses with ongoing operations that require more technical and strategic legal support.

Credits may be applied to contract drafting and negotiation, regulatory compliance, intellectual property matters, labor relations, corporate updates, and preventive legal advice.

This plan provides continuity and direct access to a designated lawyer, strengthening the company’s legal structure and decision-making process.

Premium Plan

Designed for consolidated companies, corporate groups, or foreign investors requiring comprehensive and continuous legal support across all corporate areas.

This plan includes a higher volume of legal credits, strategic legal advice for key business decisions, direct coordination with company management, and representation before public authorities or administrative agencies when required.

Its objective is to provide structured and anticipatory legal management, effectively operating as an external legal department, aligned with JG Lawyers’ principles of transparency, responsibility, and sustainability.

Conclusion

The legal credit plan model represents an evolution in how business legal advisory services are structured. It is not a commercial scheme, but a methodology designed to organize, anticipate, and sustain the relationship between lawyers and companies.

Under this system, each credit reflects value, efficiency, and predictability, ensuring that legal decisions are made on solid grounds and without improvisation.

If you want to understand in depth how this system works and how it can be adapted to the legal needs of your company, book your consultation here.

Learn more about JG Lawyers’ legal credit system

FAQ

What type of companies benefit most from this model?

This model is particularly suitable for companies that require ongoing legal support without the need for a full-time in-house lawyer, as well as entrepreneurs and foreign businesses that need continuous legal guidance for their operations in Colombia.

Do unused credits expire or get lost?

Not necessarily. Under JG Lawyers’ plans, credits may be accumulated or used in advance within a defined period, allowing flexibility and ensuring effective use of the plan.

Can credits be used across different legal areas?

Yes. Credits may be applied to corporate, commercial, labor, and debt collection matters, depending on the client’s needs. This cross-functional approach is a core element of the model’s added value.

Is this model more expensive than hourly billing or one-off services?

No. Actually, it is often more efficient, as it eliminates unforeseen charges and improves financial planning. The model prioritizes outcomes and legal certainty rather than billable time.

Can I change plans if my legal needs increase?

Yes. Plans may be adjusted as needed, allowing legal support to scale in line with the company’s growth or changes in its legal structure.

Why does this model generate greater trust?

Because clients know how much they pay, what they pay for, and how services are allocated. The legal credit system provides traceability, monitoring, and full control over legal services, eliminating the uncertainty commonly associated with hourly billing.