Authored By: Candace Whitman
Plaintiff law firms often face up against large, well-funded defense firms and insurance companies in court. These defense teams have access to vast resources, from the latest technology to top-tier expert witnesses, creating a financial imbalance. However, case expense financing is an innovative solution that allows plaintiff law firms to level the playing field and effectively compete!
The Financial Challenge for Plaintiff Firms
Case costs can be substantial for plaintiff law firms, especially in complex cases involving extensive discovery, expert witness testimony, advanced technology, and lengthy trial periods. Meanwhile, defense firms are often backed by corporations or insurance companies with deep pockets, allowing them to spare no expense.
Without access to similar financial resources, plaintiff firms may worry about their cash flow, feel pressured to settle early, or hesitate to hire the best experts for their cases.
What Is Case Expense Financing?
Advocate Capital's case expense financing service provides law firms with the necessary funds to cover litigation costs without draining the firm's operating capital. Once a firm is approved for a line of credit and begins submitting funding requests, the law firm pays monthly for the interest on its line balance. When a case concludes, the firm uses the proceeds from the case to pay the principal borrowed for case expenses. If implemented properly, the cost to the firm is next to nothing. This frees up the firm's after-tax profits and allows them to take on more complex and resource-heavy cases.
How Case Cost Funding Levels the Playing Field
- Access to the Highest Quality Resources
Contingent-fee law firms with access to a case expense line of credit are able to hire the best experts available. Whether it's securing an expert with specialized knowledge or using sophisticated presentation tools in the courtroom, case cost funding ensures that the firm can get the best possible results for their clients.
- Increased Negotiation Power
Case expense financing empowers firms to negotiate settlements from a position of strength, knowing they have the funds to see the case through to a trial if necessary. This boosts confidence and increases the likelihood of a more favorable settlement.
- Supporting Larger Caseloads
With access to capital for case expenses, law firms are better positioned to take on more cases. By handling larger, more complex cases, firms can expand their reputation and client base, ultimately enhancing their overall competitiveness.
- Get Your Post-tax Profits Out of Your Cases
By using Advocate Capital's money, you can get your post-tax profits out of your cases and back into your bank account. You can use your money to grow your law firm, take on more cases, or accomplish other personal or professional financial goals.
Examples of Success
Our clients are among the best and brightest trial law firms from all over the United States. Visit our testimonials page to read what some of our clients have to say about us. You can also check out our videos and Cases That Made a Difference® podcast to hear interviews with our clients about the impact Advocate Capital has had on their firm and cases.
Choosing the Right Financing Partner
Not all case expense financing options are created equal. For more than 25 years, Advocate Capital has specialized in providing case expense financing tailored to trial law firms using our AdvoTrac® Case Expense Funding Service. Only Advocate Capital has AdvoTrac®!
If your firm is ready to explore law firm financing solutions, including case cost financing, our Directors of Strategic Solutions can help you figure out what financing solution is best for your law firm. Click here to find your rep. They will learn about your firm, answer any questions you have about our case expense financing service, give you a demo of our AdvoTrac Case Expense Financing Software, and help you apply. Call today toll-free 1.877.894.9724, contact us online, or apply now.
