A Case for a Line of Credit
As a plaintiff’s attorney, you work hard to get cases, so when clients retain your firm, you want to focus on the underlying litigation—not the costs associated with bringing it to resolution.
You got the case, but can you afford to keep it?
On a $300,000 settlement, you may spend up to 10% or $30,000 on case costs. But what if you lack sufficient cash flow to properly prosecute the action? What are your options? You can hire co-counsel, but then your fee will be reduced, usually by 2/3. You can try a bank, but bank loans are based on hard assets. Or, you can settle early and get less money for your client-—not an option.
Multiple Cases means exponential case costs
For one or two cases, a bank loan might make sense. But what happens if you have five of those cases? Or ten? Or 100? A bank will never loan enough because it cannot underwrite and loan against contingent fees.
Simultaneously Build your personal and Law firm Net worth
CEOs would never pledge their personal assets for their businesses. They leverage the assets of the company to obtain a working capital line of credit. So why should law firms be different? By recognizing that your contingent fees have value and can be used to obtain financing now, your personal assets need not be tied up for a law firm loan. This allows you to grow personal net worth at the same time you are building your practice.
Counsel financial offers financing for plaintiffs’ attorneys by valuing your contingent fees.
Counsel Financial can offer your law firm a line of credit up to $5 million because we view contingent fees as a bankable asset. Our staff attorneys bring substantial litigation experience to their review of your case portfolio. They recognize—unlike the bank—that your cases are valuable assets that can be used to help provide your firm with the working capital it needs today.