“Advocate's platform is easy to use and makes it easy to track expenses on a per case basis. ”
- Kevin Cheney, Cheney Galluzzi & Howard
What is Case Expense Financing?
Case expense financing, also known as litigation financing, is a line of credit that contingent-fee law firms can use to reimburse themselves for the money they spend on experts, medical records and other case expenses to win in court without trapping their cash in cases.
Contingent-fee law firms that fund their cases are essentially making interest-free loans to plaintiffs. On the other hand, firms that use case cost financing are able to get their post-tax profits out of their cases and back into their bank accounts so they can invest in marketing, personnel, new technology and more to help them grow.
You pay monthly interest on your line balance. If implemented properly, your firm will be reimbursed 100% of the cost of our services on the cases that you win. So, the net cost to your firm is close to zero.
Turn Your Case Expenses Into Cash® with the power of AdvoTrac
AdvoTrac®, our proprietary software platform, tracks borrowing costs on a case-by-case basis, making it possible for our clients to reduce their net cost of capital to below 1%* (on average) by recouping their borrowing costs from their cases.
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Better results for your clients
Litigation financing allows your firm to make the best choices for your clients. You can access the best experts and support services necessary to win the case without concern for how it will impact your cash flow. We empower you to level the playing field with large insurance companies and their well-heeled law firms.
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Case expense financing vs. your local bank
We offer law firm financing at an annual cost of less than 1%*. With your local bank, funding will likely cost 7% to 10% annually. Plus, most banks do not understand your business model and non-traditional assets like legal cases. We do.
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Enhance your cash flow
Even in the most successful law firms, cash flow can fluctuate significantly. You may settle a large case one month but then not settle another for several months. Litigation financing smooths out these valleys by replenishing the funds you have spent on case expenses. Additionally, case expense financing gives your firm the confidence to reject low settlement offers and continue to fight for the justice your client deserves.
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Take on more cases
We help you stay organized and empower your firm to accept more cases by relieving the financial burden of case costs. By using our line of credit, you can reimburse yourself for every case expense as your firm incurs them without waiting for proceeds.
Get started
Start by finding your Advocate Capital rep, who will learn about your firm, answer your questions, and help determine which litigation financing solution is best for you. Your rep will also give you a demo of our AdvoTrac Case Expense Financing Software and help you apply.
Or you can call 615-377-6872, contact us online, or apply now.
Need help finding your rep? Tell us about your firm and we can help.
Frequently Asked Questions
Approval is subject to our underwriting process and a decision by our credit committee. However, you can take this quick quiz to see if your law firm might qualify:
Do you have at least $50,000 invested in case expenses?
Do the partners of your firm have good credit history?
Has your firm been practicing successfully for several years?
Is your firm free of ethical problems and sanctions by the bar?
If you answer yes to all of these questions, your firm may qualify to be an Advocate client.
Absolutely not. Once your line of credit is established, you decide which cases to fund. And you can start or stop funding a given case at any time.
Our objective is to be as unobtrusive as possible. We will work with your staff to minimize any disruption as they provide us with the documentation we need.
A firm cannot pass through interest without the proper language. We recommend that you add language to your client fee agreement that discloses this transaction. We also recommend that you begin using such language in your agreements immediately so that you will be ready to take advantage of our services if your firm is approved. Click here to request sample language.
Less than you’d think. As you know, the majority of larger expenses come toward the end of a typical case. While the effect on your client is small, the positive impact on your practice is significant. View an interactive chart that shows our estimated impact on an individual case.
Definitely. We have many happy clients who have said that they would be glad to provide references for us. We can connect you with them later in the process as needed. Read what our clients have to say about us on our testimonials page.
If implemented properly, the cost to your firm is next to nothing. Our rates are reasonable, and our services enable your firm to get reimbursed from your cases for 100% of the cost of our services on the cases that you win. So, the net cost to your firm is close to zero. Our rates float with the Prime Lending Rate as published in the Wall Street Journal.
Advocate Capital never discloses your client’s information. We underwrite law firms, not their clients. We treat our own clients with the same discretion that you treat yours.
The principal is due at the conclusion of each case, or the expiration of our agreement, whichever comes first.
If a case is abandoned or lost, you would be required to repay the amount advanced against the case and any outstanding interest. It is our experience that a minimal amount of money is invested in cases that are ultimately abandoned.
Case expense funding is best suited for contingent-fee law firms. Our team will help you understand how to strategically fund your cases to benefit your firm and your clients best.
The following are case types we typically fund, although exceptions do apply:
Personal injury
Medical malpractice
Civil rights
Birth injury
Product liability
Employment
Healthcare
Wrongful Death
The following are case types that are typically not suited for Advocate Capital’s case expense funding, although exceptions do apply. Please reach out if you have any questions or would like to discuss how case expense funding could work for your practice.
Mass torts
Criminal
Family
Corporate
Commercial
Intellectual Property
Real estate
Trust, estates, and probates
No, Advocate Capital does not provide case expense financing directly to plaintiffs. Advocate Capital only works with contingent-fee law firms.