Bank loans and other conventional methods were the only options for law firm funding for many years. If you require funding from such sources, you need to put your assets on the risk for business operations and growth. On the other hand, law firm funding is a great alternative for financing your firm without exposing your personal assets. Moreover, it is a secure option that uses the value of your legal cases as collateral. It enables a firm to secure better outcomes, apply capital to business growth and cost, and quality resources for cases.
Law Firm Funding Specialized in Evaluating the Value of Legal Cases
Traditional sources of funding such as bank loans do not have the ability and experience to evaluate the value of portfolios and legal cases. The main problem is they do not know how to evaluate these things. Moreover, these conventional sources of funding need your assets as collateral. They do not accept the pending cases as collateral. On the other hand, a legitimate law firm funding company knows the value of a legal case because it understands how a law firm operates and it’s business model. Hence, they can evaluate the real potential and assets of the firm.
Cash Flow Is A Unique Challenge for Law Firms
Cash flow is not only a problem for a law firm but also for any type of business. But it is most important in the legal field. The problem is a law firm has common contingency payment agreements and assets tied up in litigation.
Case Cost Lines of Credit and Attorney
One of the options for improving the cash flow is to have a cost line of credit to improve the flexibility in a funding agreement. But it offers the freedom to draw upon the resources that are available as needed. The best financing partner for your firm can also offer a line of credit based on the collateral.
You can use these funds drawn from case or attorney cost lines of credits to pay for experts, investigators, legal staff and other litigation expenses. Moreover, you can use these funds for other business costs like office or marketing expenses.
Do Not Need to Refer Cases For Cutting the Cost
Baker Street Funding has a team of professional and legal experts. These are well-experienced people who can examine the strength of every complex case. Moreover, they can find a weakness in a legal case. They can provide deep analysis reports of the firm which can minimize the risk. In other words, it makes it easy to provide capital on favorable terms.
A law firm will not need to refer any valuable case to its competitors just to cut costs. Having enough funds will make it able to handle contingency fee agreements and complex litigation without any problem. It will give the ability to the firm to thrive, grow and build relationships for a successful future ahead.