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:

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:

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.