Filing a lawsuit can be very expensive. For most people, paying an attorney in cash is not an option. But using credit cards and loans can add fees and interest that increase costs (which is less than ideal for clients with medical bills and a reduced income). Legal fee funding is a more affordable alternative. But does it offer more advantages over settlement funding? We’ll now explore the answer in detail.
A Look at Attorney Funding
A traditional approach to fee funding is an installment loan. A popular type of financing, it lets clients pay flat fees, contingency fees, hourly fees, retainer fees, and more in installments. Some law firms offer such an option, especially to repeat clients. After all, they must cover costs such as court, witness, investigator fees, travel expenses, and more.
Consumer financing has taken the world by storm; legal fee financing is another variation of the “buy now, pay later” model. Many Americans live paycheck to paycheck, making it impossible to afford legal services upfront. But even if someone has a reasonable income and credit cards to use, paying a lawyer is costly.
Legal fee funding has taken the form of legal fee financing and alternative payment plans. But with rising costs, inflation, and interest rates, it’s not always the most affordable option. Non-recourse lawsuit funding from Fund Capital America has no upfront costs. The entire cash advance is paid out of a settlement, including fees and other expenses.
Why Should I Choose Legal Fee Funding?
Regardless of the type of financing, law firms benefit from:
- Reliable Cash Flow: Attorneys can operate on a contingency fee basis without the risks of not being paid. The capital that fee funding provides is typically more than what a traditional bank would.
- Operating Costs Are Covered: A law firm can afford to manage payroll, advertising, discovery, and overall operating costs. Legal funding lets firms take on more clients and follow through on cases to reach the most favorable outcomes.
- The Option to Let Clients Pay Over Time: An alternative to waiting for payment out of a settlement, legal fee financing is a service that funds a legal practice, which can ,, offer clients the option to pay legal fees in installments.
Every client may have different financial circumstances. Offering different ways to pay gives clients the flexibility to continue with their cases and for your firm to maintain its cash flow. Financing options for clients increase collections, save time, and allow you to increase your client base.
Legal Fee Funding vs. Settlement Funding
Every lawsuit involves fees that must be paid. But cases are often unpredictable. Can your client, who may be out of work indefinitely and healing from serious injuries sustained in an accident, even afford to pay in installments? They may be barely able to cover rent and groceries. At Fund Capital America, we offer even more flexible settlement funding options that include:
- Pre-Settlement Loans: A non-recourse cash advance requires no income or credit check. We use police reports, medical records, witness accounts, and details of your client’s case to determine qualification for funding (and for how much).
- Post-Settlement Funding: Plaintiffs often wait to get paid after their cases settle. Defendants can appeal the decision, and insurance companies can delay payments. Legal funding covers a client’s expenses until they can be deducted from the settlement check.
- Lawsuit Cash Advance: You can refinance a previous cash advance or cover the costs of self-funding a case through our Lawsuit Cash Advance REFI / Cash Out Program. Unexpected financial issues can otherwise force a plaintiff to settle early.
- Settlement Acceleration Program: Our program pulls cash from a future settlement that can be weeks, months, or years away and pays it back as a percentage of the total proceeds received. The process works similarly to a reverse mortgage or home equity.
Contact Fund Capital America
Our legal funding services can avoid ethical conflicts with your state bar and streamline the legal process. With office and litigation expenses covered, you can follow through with a case regardless of a client’s financial hardships. Apply now to see if you qualify for legal funding. To learn more about how our services can benefit your firm over legal fee funding, call (855) 870-2274 today.