Law firms that self-fund their case expenses effectively provide their clients with an interest-free loan. With Advocate Capital’s case expense funding service, law firms can get their post-tax profits out of their cases and back into their bank account.
Tracking case expenses is essential for contingent fee law firms that plan to recover borrowing costs after winning cases. Firms risk overlooking recoverable costs without precise tracking, which can impact their profitability. We created AdvoTrac® to track case expense lines of credit on a case-by-case basis.
Our case expense funding clients can use AdvoTrac® to streamline case expense tracking, ensuring accuracy and the ability to reduce their net cost of capital to below 1% (on average) by recouping their borrowing costs from their cases.
Why Case Expense Tracking Is Crucial
Contingent fee law firms invest considerable time and resources into cases without any upfront payment. Case expenses—such as expert witnesses, medical records, and accident recreations—can add up quickly, making meticulous tracking essential.
The accurate case expense tracking AdvoTrac® provides allows firms to:
- Maximize Profitability: Ensure that all costs are recovered at the conclusion of a successful case.
- Boost Efficiency: Streamline financial processes, reducing the time spent managing expenses.
- Improve Cash Flow Management: Monitor ongoing expenses and prevent financial surprises.
Enhance Expense Tracking Accuracy with AdvoTrac®
AdvoTrac® takes the stress out of expense tracking by providing a comprehensive, easy-to-use platform for law firms. Our case expense funding clients can neatly track their case expenses and run various reports to help them analyze data on their case expenses and line of credit.
With AdvoTrac®, firms can:
- Track expenses on a case-by-case basis, ensuring no expense is missed.
- Generate detailed reports to review costs and identify potential gaps.
- Easily recoup borrowing costs to ensure that they don’t cut into profits.
AdvoTrac® enhances productivity and increases your firm’s financial awareness, helping you stay on top of your case expenses, optimize your overall profitability, and get even better results for your clients.
Line of Credit Tracking for Seamless Borrowing
AdvoTrac® helps our clients manage their lines of credit effectively. Firms can track case costs relative to their borrowing, allowing them to recover those costs once the case is won.
Here’s how it works:
- Submit Funding Requests: If by our Credit team, you can submit funding requests for case expenses.
- Track Borrowing: Upload your case expenses to AdvoTrac® and pay monthly interest on the line balance.
- Generate Payoff Quote Reports: When a case concludes, you can generate a detailed Payoff Quote report. This report shows the amount due to Advocate Capital and the amount your client owes you for reimbursable costs.
Streamlining Fee Agreements
To fully leverage the benefits of expense tracking and pass borrowing costs through to cases, law firms may need to update their attorney-client fee agreements. We offer sample fee agreement language to make this process simple.
With the proper agreement, firms can seamlessly pass costs through to their clients, ensuring financial transparency and efficiency. Your clients benefit from case cost financing because it allows your firm to make the best choices for your clients. You can choose the best experts and support services needed to win the case without worrying about how it will impact your cash flow.
If you have questions or would like to update your fee agreement, feel free to reach out to us or click here to request our Sample Fee Agreement Language.
AdvoTrac® Case Expense Management Software
With AdvoTrac®, law firms can improve accuracy, recover case expenses, and manage their lines of credit effectively. This tool allows contingent fee firms to remain organized, boost productivity, and ensure profitability in cases that they win.
To get started, fill out our application for case expense funding. If you’d like to take a test drive of the AdvoTrac® portal, call or email us today to schedule a demo.
