Attorneys who represent personal injury cases or major commercial litigation suits on a contingency fee basis can benefit from a type of legal funding known as attorney funding. This kind of financial assistance is designed to help lawyers who are in the midst of long, drawn-out lawsuits that may take months or years to be resolved.
Just as injured plaintiffs are often forced to struggle through a lengthy court process with medical and personal bills mounting, attorneys at the helm of these legal cases must also deal with issues connected to the suits that put extreme pressure on their own finances and those of their law firms. Even though an extremely profitable fee may await in cases of medical malpractice, mass torts, and ones involving minors, the very real possibility exists that a law firm could face major hardships on the way to these funds.
Relieving Financial Pressure From Attorneys and Clients
Lawyers who handle the type of cases mentioned above know the financial pressure clients face while the law firm works to bring about maximum success. Through legal funding, a helpful buffer can be built while the time-consuming litigation process trudges through months and years, not just days and weeks.
Clients often find themselves financially exposed during this period, without the ability to provide for their basic needs like housing, food, transportation, and medication. Lawyers are not typically allowed to help clients financially. Therefore, attorneys end up spending an undue amount of time dealing with financial problem-solving for these clients rather than attending to the lawsuits. For this reason, cases suffer and lawyers become frustrated by an inability to devote a high level of expertise to each one.
Through legal funding, clients receive financial assistance that enables them to fulfill their financial obligations. The attorneys are then able to channel their time and resources into the legal process of obtaining maximum compensation for the cases. Legal funding basically gives attorneys back the ability to excel at their chosen calling – practicing law.
When clients are forced to take an early, low settlement out of desperation due to their financial inability to allow the legal process to run the full course, the attorneys involved take a hit personally and financially. Nothing is quite as discouraging to these attorneys as being forced to end a lawsuit early with a lowball settlement amount due to a client’s poor financial condition. This scenario is a perfect example of how legal funding helps level the playing field by handing lawyers the extra time needed to push for higher settlements that clients deserve.
However, even after given the positives for both the law firm and the client, some lawyers are not comfortable recommending legal funding to struggling clients. There seems to be a concern that the funding company might try to interfere in the case. If this were true, it would be a legitimate cause for concern.
Legal funding companies, though, never interfere in a lawsuit. They have a very strict “hands-off” policy. By understanding that they are alleviating pressing financial needs for plaintiffs, thus giving attorneys the extra time required to build a stronger case, legal funding companies help create a win-win situation for everyone involved.
Funding for Attorneys
Not only does legal funding work to help clients obtain adequate finances for the long haul of a lengthy lawsuit, but it also works to help attorneys and law firms obtain access to cash flow for expenses during the same period. With each attorney and each law firm having different circumstances, legal funding companies can help provide a solution for the varying types of financial needs.
The Legal Funding Group can assist attorneys with managing their portfolio of cases, and based on that portfolio, we will provide funds for payroll, marketing capital, office expenses, etc. We can alternatively make available specific financing on a case-by-case basis that will provide funds for expert witnesses, litigation expenses, discovery costs, and administrative expenses.
During Settlement Delays, Financial Assistance is Available
Without question, law firms must have a consistent flow of capital. Some attorneys find themselves in a financial bind if their legal fees are held up by unexpected delays. Because thriving legal practices must have these fees in order to build strong cases, pay daily expenses, and find new clients, an interruption in the financial flow can do irreparable harm.
Varying forms of funding for attorneys can be molded to exactly fit the solo practitioner’s needs in addition to a large firm’s requirements. This financial blanket of protection can help shield any size law firm from the hazard of delayed contingency fees. In addition to all of the above-mentioned uses, a funding advance can even go a step further by providing cash for advertising and marketing endeavors with no drain on existing capital.
Traditional Financing vs. Funding for Attorneys
It is not uncommon for law firms to seek a line of credit at a national or local bank. While such financial institutions can potentially provide a line of credit or a business loan, these products do not always provide a sufficient amount of capital given the intricacies of legal practices. In essence, attorneys who choose this form of traditional financing may be adversely risking money they have already made to try to secure the money they have to make in the future.
Traditional lending institutions perform credit checks and request collateral in the form of stocks, real estate, or bonds when giving a line of credit. Many attorneys operate their law firm as individuals, so their personal credit will be challenged by the institution’s loan approval procedures. Additionally, many of these same attorneys may have little collateral tied to their firm.
Applying for Attorney Funding
Through The Legal Funding Group, attorneys are not required to follow the above loan procedures. We base the process on the portfolio of current and former cases. No personal guarantee is required since our agreements are non-recourse.
Contact us at 912-777-3997 or complete the online application to receive available financial assistance for your firm.
