- What types of funding do
you
provide to attorneys?
We provide the following types of funding to attorneys.
- law firm loans or attorney funding
- pre-settlement funding for clients
- settlement advance funding
- appellate funding
- accounts receivable funding
- structured settlement refinancing
- How does the law firm loan
work?
A law firm loan
(also sometimes referred to as "attorney funding") is
created on a portfolio of contingency fee cases. The value of the law
firm loan is determined by the value of the cases in the
portfolio. The minimum law firm loan is $10,000, and the maximum
can be over $10,000,000. Pricing of the law firm loan will depend
on the size of the portfolio, the case type mix within the portfolio,
the intended usage of the funds from the law firm loan, and the average
settlement time frame of the cases within the portfolio. One of
our underwriters will create law firm loans with limited recourse where
the only collateral for the loan is the portfolio of cases
itself. There is no personal guarantee, and there is no need to use
personal or other assets of the firm as collateral. This allows you to
use other people's money rather
than your own to grow your practice.
- What can the law firm loan
be used for?
The law firm loan
has no restrictions on how it is used. It can be used for expert
witnesses, hiring additional staff, paying salaries including your own,
and paying down other debt of the firm.
- What types of
pre-settlement
funding do you provide?
We can provide pre-settlement funding
for your clients. To learn more about how we can help your clients,
please review the page on FAQ's for
Pre-Settlement Lawsuit Financing.
- What is "settlement
advance
funding"?
After you have arrived at a settlement, you may
have to wait to receive the settlement funds from the defendant's
insurance
company. You can now get an advance on the expected proceeds from
the settlement to help meet the cash flow requirements of your
practice.
- What is appellate funding?
Appellate funding is funding provided after a judgment has
been rendered but is being appealed. It can be used to cover the
same type of expenses as pre-settlement funding. The advance
percentages may be higher than for pre-settlement funding because more
is known about the case.
- What is accounts
receivable
funding?
Accounts receivable funding provides an advance on legal fees within 24
to 48 hours after the invoices are presented for payment. The
invoices must be for legal services already provided to business or
government clients on settled
cases (unsettled cases must be handled
with attorney funding, pre-settlement funding, or appellate funding).
The amount
advanced
varies depending on the credit worthiness of the client owing the fees.
The amount of the invoice not advanced is held in reserve to
cover fees. The reserve amount not used for fees is paid to your
firm when your client pays the invoice. Invoices to individual
private clients do not qualify for accounts receivable funding.
- What is "structured
settlement
refinancing"?
If you settled a case as a "structured
settlement" and your fees were also to be paid out over time
according to the "structure", then you have the option of selling all
or part of those future "structured payments" to receive a cash
payment today. The same can be done for the client for whom
the "structure" was created.
- What are the fees for
pre-settlement and appellate funding?
The fees for
pre-settlement and appellate funding vary depending on the risk
associated with the cases involved. They include both one time fees and
fees that are charged for each
month the advanced funds are in use.
- Is there "recourse" on the
funding for attorneys?
This depends on the type of
funding. Pre-settlement and appellate funding do not have
"recourse". If the case is lost, nothing is owed. The law firm loan may
or may not have recourse depending on the situation and
the underwriter providing the funding.. Accounts receivable
funding will usually have "recourse" unless the client goes
bankrupt. In other cases where the client does not pay the
invoice, the law
firm must either repay the advanced amount plus fees owed, or replace
it with another receivable of equivalent or greater value.
- Can you fund my clients?
Yes! We provide the following types of funding for your
clients.
- pre-settlement funding
- appellate funding
- structured settlement refinancing
- advances from estates in probate
- Is pre-settlement lawsuit
financing a "good deal" for me and my clients?
This depends on the situation. Pre-settlement lawsuit financing is
definitely a "good deal" when it enables you to reach a settlement or
judgment that
more than pays for the cost of the financing, or allows you to take on
cases resulting in fees that you would not have gotten without it. When
you are able to reach a higher settlement value both you and your
client win. You earn a higher fee and your client may also walk
away with a larger settlement. It
may still be a "good deal" even it does not quite "pay" for itself if
can help to bring medical or economic relief to your client while going
through
the lawsuit process. Pre-settlement lawsuit financing is a tool to be
used by you and your clients when it appears appropriate for any number
of reasons for the situation.
If you have additional questions, or if you would like to learn if
funding can be obtained by your firm, please
click here to contact us .
Call us now at 1-800-598-1178
to get started.
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