When a personal injury lawyer takes on a case, significant upfront case expenses are often unavoidable. Whether it’s hiring expert witnesses, paying for medical records, or gathering essential case evidence, these costs can quickly pile up, providing a major financial challenge.
This is where law firm financing options, such as case cost funding, become useful for managing cash flow and case costs! By utilizing litigation funding solutions, law firms can alleviate the pressure of high upfront litigation costs, allowing them to focus on winning cases and improving client outcomes.
The Financial Strain of Litigation
Costs associated with discovery, expert witnesses, depositions, case research, and courtroom presentations can be overwhelming, especially when the firm must cover these expenses upfront before seeing any potential return from a case.
For many trial law firms operating on a contingency fee basis, the gap between covering these costs and receiving payment after a successful outcome can be months or even years. This extended waiting period can prevent firms from taking on new cases or investing in their overall growth.
Specialized Law Firm Financing: A Lifeline for Law Firms
Many firms turn to specialized legal financing solutions, such as case expense funding, to manage these high upfront costs without sacrificing financial stability. With Advocate Capital’s case expense financing, law firms can obtain the financial resources needed to cover litigation expenses without depleting their operational cash flow!
Here’s how it works: Your firm applies for a line of credit with Advocate Capital. Once your firm is approved, you can submit funding requests through AdvoTrac®, our proprietary software platform. Your firm pays monthly for the interest on your line balance. When a case concludes, the firm uses the proceeds from the case to pay the principal borrowed for case expenses. Making the cost to the firm next to nothing because the firm can recoup the borrowing costs at the successful conclusion of every case they win. Case cost funding allows law firms to:
- Preserve Cash Flow: Firms can focus on maintaining daily operations and payroll by reducing the need to use internal funds for case-related expenses.
- Scale Caseload: With access to funding for litigation expenses, firms can take on more cases, even high-cost, high-reward ones, without worrying about how to fund them upfront.
- Optimize Client Outcomes: With financial constraints alleviated, firms can invest in the best resources to build a stronger case, improving the likelihood of a favorable result for their clients.
Advocate Capital: Your Partner in Litigation Funding
Advocate Capital offers tailored law firm financing solutions that align with the unique needs of trial law firms. With decades of experience working with attorneys nationwide, Advocate Capital understands contingent fee law firms’ financial challenges and provides solutions to alleviate them.
By offering specialized law firm loans, including case cost funding, Advocate Capital helps firms stay financially sound while still delivering exceptional service to their clients. Law firms can focus on pursuing justice without the weight of upfront litigation costs.
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.
