What Others Say:
"My partners and I turned to LawFinance Group to provide financing for a major mass tort effort. In contrast to a traditional bank, they easily understood our needs and the tremendous upside potential of our business."
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Custom Finance Q & A
How much will you advance under a CustomFinance loan?
Under our Custom Finance program, loans can be written as either term loans or revolving lines of credit and typically range from $500,000 to as much as $15 million. Whether for mass torts, class actions or any other unique situation, CustomFinance provides custom-designed loan solutions to meet a law firm's individual needs.
How is a CustomFinance loan structured?
The Custom Finance program offers flexible law firm loan terms. Interest rates, repayment schedules and conditions are negotiated on an individual, case-by-case basis. However, a typical CustomFinance loan is a secured, 2-year revolving line of credit. The term of the loan is renewable at the parties' election.
How is a CustomFinance loan secured?
The borrowing firm grants LawFinance Group a security interest in all assets of the firm, including the firm's full portfolio of active cases, contingency fees, cost reimbursement rights and accounts receivable.
What are the advantages of a CustomFinance loan?
By borrowing money against its costs and fees, a firm frees up capital that would have otherwise been tied up in case costs. The firm can use this money for investments, distributions, expansion of the firm or funding of additional cases. Also, the interest on the loan may be tax-deductible as a business expense. In addition, when loans are structured to fund case costs, many states allow firms to pass a portion of the interest the firm pays on to the clients. LawFinance Group works with firms to structure cost-based loans in order to capture this benefit.
Can I get a loan from a bank?
Banks typically charge a lower interest rate than law firm financiers. If your firm qualifies for a business loan from a bank, LawFinance Group encourages you to consider the loan carefully. However, most banks do not have the expertise to evaluate a firm's primary asset: its rights to costs and fees in contingency fee suits. As a result, a bank will usually loan only up to the value of the personal assets of the partners of the firm, who are required to provide personal guaranties. LawFinance Group is in the business of valuing cases and lends against these assets. Therefore, we can provide lines of credit much greater than most banks.
Why should I choose LawFinance Group?
LawFinance Group is the founder and acknowledged leader of the litigation finance industry. We offer competitive rates and loan terms. By lending against costs and contingency fees, LawFinance Group can provide firms with significantly more capital than most banks can. Additionally, LawFinance Group products have received the exclusive endorsement of numerous attorney organizations.
Will LawFinance Group be involved in my firm's cases?
Absolutely Not. LawFinance Group makes loans to law firms, but assumes no involvement in the firm's cases.
How do I apply?
Simply fill out our online Funding Application or contact us toll free at 1-800-572-1986 and we will do the work for you over the phone.
If you are an attorney or law firm and you need assistance with financing legal practices, contact our custom finance specialists for a complete discussion of how our experience and resources can be put to work for you.
