Advantages of Lawsuit Loans for Lawyers

Jacky Gale | November 14th, 2013

lawsuit loans for lawyersThe litigation process is a long road, both for attorneys and their clients. It can take years for a case to be resolved through a settlement negotiation or a jury award. In the meantime, attorneys log long hours of hard work and expend considerable resources investigating the case.

Since many law firms delay collecting payment for their services until after a settlement or jury award has been reached, the financial burden of the case falls squarely on the practice. Cash flow is an essential part of any business, and law firms are certainly no exception. Your firm may wish to consider applying for lawsuit loans for lawyers to keep your business solvent as you await payment.

Attorney funding vs. plaintiff funding

Legal loans are available for both attorneys and plaintiffs. Plaintiffs may apply for a legal loan to cover their expenses as they await a jury award or settlement. For example, a plaintiff who files a personal injury lawsuit after a car accident can use a legal loan to pay medical expenses, rehabilitative care needs, and living expenses. Legal loans help keep plaintiffs on their feet even while they are out of work recuperating from their injuries.

On the other hand, attorney funding is available to legal counsel to pay various expenses while they await payment. Like plaintiff funding, legal funding for attorneys is flexible in its potential uses, and it can keep a law firm afloat until the payouts are distributed. Legal loans are different from traditional bank loans in that they are non-recourse. This means there is no risk to you if the case is unsuccessful.

Types of lawsuit loans for lawyers

There are several different types of legal funding for attorneys available. One of these options is pre settlement funding. Pre settlement funding is essentially a cash advance in anticipation of a settlement or jury award. It can take months or even years for a resolution to be reached. A pre settlement attorney loan enables you to pay your expenses and keep your business running despite the long wait.

Even after a settlement is agreed upon, it may take quite a long time before your law firm receives payment. You can convert your settled cases into cash with a post settlement loan. A post settlement loan can be structured based on the settlement agreement. This type of legal loan enables you to move on to your next case without wasting resources trying to secure your payment.

Case funding is another type of legal loan available to attorneys. Case funding provides working capital to cover the costs of specific litigation. It can pay for investigations and studies, and it can cover the expenses of obtaining expert witnesses for your case.
If your law firm requires a more general type of legal loan that doesn’t just cover one specific case, consider applying for an attorney line of credit. A line of credit may be used for any type of business-related expense, including payroll, operating expenses, and variable costs.

Many benefits of attorney loans

Lawsuit loans for lawyers offer a multitude of benefits for your law firm. By converting your cases into cash rather than waiting for your payments, your law firm can continue with its day-to-day operations seamlessly. Additionally, you’ll be able to increase your branding efforts by funding advertising campaigns, meet your payroll obligations, and ensure your cases are well-funded. And since attorney loans are non-recourse, there is never any risk to you or your business.

For all types of attorney funding, turn to the experts at LawStreet Capital. Our company offers risk-free, non-recourse cash advances to reduce your financial burden and ensure the smooth operation of your day-to-day business. Call us anytime at 1.866.FUND.662. The application is free and you can expect quick approval if you qualify.