FirmFinance Description

FirmFinance™ is our loan program designed to help law firms prosper and grow. It provides larger revolving and term loans based on the collateral value of the firm's entire portfolio of active cases, including contingency fees, cost reimbursement rights and accounts receivable. FirmFinance loans provide capital to help law firms meet demands for operating capital, to aggressively build a strong portfolio of contingency fee cases or to pursue other business opportunities.

FirmFinance Benefits

• Provides larger revolving and term loans at competitive interest rates.
• Interest charges may be written off as an ordinary business expense and paid for with pre-tax dollars.
• Allows recovery of a portion of the interest costs as a litigation expense.
• No interference in the attorney-client relationship. LawFinance Group acts only as an outside commercial lender.
• Provides operating capital to pay for case preparation and business expansion.
• Offers law firms access to large-scale loans commercial banks typically cannot provide.

FirmFinance Pricing

Our FirmFinance program provides law firms with larger revolving and term loans at competitive interest rates. Loans and lines of credit ranging from $500,000 to $25 million are secured by the firm's entire portfolio of active cases, including contingency fees, cost reimbursement rights and accounts receivable. Interest rates, repayment schedules and conditions are negotiated on an individual, firm-by-firm basis.

FirmFinance Q & A

What are the advantages of a FirmFinance loan?

By borrowing money for its practice, 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 cannot 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. 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 offers competitive rates and loan terms. By lending against costs and fees through our costs-plus program, LawFinance Group can provide firms with significantly more capital than most banks typically can. Additionally, LawFinance Group products have received the exclusive endorsement of numerous attorney organizations.

How is a FirmFinance loan structured?

LawFinance Group offers flexible loan terms. A typical loan is a secured, 2-year revolving line of credit. The term of the loan is renewable at the parties' election.

How is a FirmFinance loan secured?

The borrowing firm grants LawFinance Group a primary security interest in all assets of the firm, including its rights to costs and fees from any of the firm's cases.

Will LawFinance Group be involved in my firm's cases?

No. 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 1-866-559-3863 and we will do the work for you over the phone.