Attorney funding or lawyer funding is a legal process through which a lump sum of money is given to contingency fee lawyers. Contingency fee lawyers are those lawyers who are paid only if the case is won. This gets very difficult for contingency lawyers to manage a smooth and successful legal practice. The cases, specifically the personal injury and the ones involving government officials, might take years to settle and it seems quite impossible to wait for so long. It often gets hard to even manage the daily expenses. Lack of capital puts adverse effect on law practice of attorneys.
Lawyers facing such issues seek for a lifeline, which is a trustworthy and reputable attorney funding company. It is worth focusing that the amount given to lawyers is not a loan, it's an advance. The advance which they receive is in fact their own future fee. Advance is offered in exchange of some share from the payoff, given to attorneys by their clients, at the end of the case. Attorney funding includes four types, pre-settlement funding, post-settlement funding, voucher funding and attorney lines of credit.
Pre-settlement funding as the name tells, is given to those attorneys who are in need of capital, before the case is settled. They need it to continue their law practice, arrange strong witnesses, conduct interviews, do research on the case and to maintain daily expenses.
Post-settlement funding is opt only when the case has been settled but the attorney has not been given his/her fees yet. Pre-settlement advance helps attorneys to find new clients and continue their legal practice by expanding it. This is a non-recourse advance. This means if for some reason the settlements were not paid by the obligor(in this case the client), the attorney, according to the agreement would keep the part of fee which was advanced.
Voucher funding is given to those attorneys who are hired by a government or state and are given the voucher of their fee by the state. It is more like post-settlement funding because the attorney receives the advance only if the voucher has been issued.
Attorney line of credit or law firm line of credit is an advance given to law firms to expand their business, hire more staff and increase the number of cases. It is a regular flow of capital through which the needs of the law firm are fulfilled.
A reputable attorney funding company has attorney-friendly application process. The representative of the funding company assesses the case entirely and tries to figure out the needs of the attorney. After the evaluation, the funding company makes agreement with attorney and then the advance is issued the very next day. For advance to be issued no personal credit checks are required since the advance issued would solely be used for the business practice and not the personal use. The funding company intends to assist the attorneys as far as possible to help them out with hurdles they face in their law practice. The advance offered can prove to be very helpful in this regard.
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