What Is Attorney Funding?
Attorney funding is a subset of legal funding that is tailored specifically to plaintiffs' attorneys. Types of attorney financing include pre-settlement funding, post-settlement fee advances, law firm lines of credit, case cost financing, and voucher funding.
Litigation finance offers a number of benefits
Litigation finance offers a number of important benefits to plaintiffs, attorneys, law firms and investors.
- Helps undercapitalized plaintiffs further meritorious cases by financing commercial litigation expenses
- Provides capital injections for already filed cases that experience funding constraints
- Reduces the risk of premature settlement for less than cases are worth
- Unlocks liquidity for working capital
- Provides a cushion for personal expenses
- Allows companies to manage how litigation costs affect their balance sheets
- Enables greater access to top legal talent
Attorneys and law firms
- Allows attorneys and law firms to accept cases from plaintiffs who otherwise could not afford their fees
- Provides capital for all litigation expenses, including expert witness fees
- Reduces the risk that clients will run out of money during litigation
- Enables attorneys and law firms to offer more flexible payment arrangements to prospective clients
- Increases plaintiffs’ effectiveness by providing funding for working capital and personal expenses
- Helps achieve recoveries that are more in line with case merits and damages