Law firm financing is complex and legal practices are cyclical. Like any other business they require flexible financing solutions. Whether it is an advance on a single settled case or a loan against a group of non-settled cases, American Pride has an attorney funding solution for your firm’s needs.
The Lawyer Loan and Case Cost Financing
Contingency fee attorneys have a particular set of cash flow and financing issues. An attorney can have a string of cases settle and have no need for any type of financing or attorney funding and an extended period with no revenue. Your income is not linear; however, you must continue to invest in your business and service your overhead. The alternative to using your own money for case costs is to look at alternative law firm funding. A single advance on a pending case or group of cases could essentially refinance your firm.
Banks require perfect credit, highly liquid assets, encumber partner’s home equity, and often require attorneys to pledge additional assets which ties up their personal finances and credit. The amount of funding approved from banks is often inadequate and only available in bull markets. Commercial banks do not have the expertise or bandwidth to evaluate a contingency fee portfolio. As a result, banks cannot provide law firm loans or revolving credit based on the expected fees from a firm’s pending case inventory. In addition, banks require frequent pay downs and burdensome monthly payments. This creates unnecessary risk and stress for the firm’s partners and case specific attorney funding could be helpful.
American Pride understands the management challenges faced by trial attorneys and law firms. As a result, we provide fast turnaround, rapid decisions, and immediate disbursements. We are committed to providing our law firm and attorney clients timely access to significant amounts of working capital for operational expenses, case costs, trial preparation, and practice development. The most valuable asset of both the sole practitioner and the diversified firm is the future fees. Our expertise and resources to assign full value to each practice’s current cases and projected fees.
To smooth out the back and forth cash flow cycle of the contingency fee practice we have several attorney funding solutions.
You can now leverage after tax dollars with no monthly payments to pay for expansion, partners bonuses, and increased marketting.
Not every person and not every lawyer has perfect credit. Don’t let credit issues stop you from focusing on your work and accessing the financing you need. In lean times, lawyers often exhaust personal credit and pledge personal assets to sustain their practice. We can help lawyers with credit issues because our loans and advances are based on the quality of your individual or group of pending cases.
We make receiving an advance on your expected fees from an entirely settled case is a simple process. Up to fifty percent of your anticipated attorney fees can be advanced on a settled case. In addition, advances on settled cases do not require additional collateral, personal guarantees or firm balance sheet inquiries. Attorney and law firm advances are available as high as seven figures. The list of benefits is numerous: no personal guarantees, no monthly payments to burden the firm overhead, no requirement to sell the case fee at a discount, non-compounding fees as low as 2% a month, no maximum advance amount, no underwriting fees or application fees, and no requirement to open a new banking relationship. Finally, no personal or firm balance sheet inquiries, you provide no collateral except your pending cases.
American Pride can now advance your attorney fees on non-settled cases. We look at a lead case and a group of cases to be used as collateral. We are going to look at the liability, damages, and insurance coverage associated with those cases. From there we can advance the requesting attorney a percentage of the future potential fees from those cases. Each solution is customized to the financing needs of the law firm.