Focus on Growth
The complexities of cash flow for personal injury legal cases should not inhibit your firm’s growth, nor should it affect the outcome of a claim.
While it may be feasible to cover disbursements and fees ahead of a settlement on a handful of files, incurring financial outlay towards a volume of cases can become substantially prohibitive. Traditional lending can bridge cash flow issues, however creative lending solutions are becoming increasingly necessary to compliment traditional lending products. Regardless of a firm’s degree of capitalization, lawyers must take on as many cases as possible in order to remain competitive and ensure healthy bottom-line growth.
A lack of sufficient capital can also affect the outcome of a case. In today’s environment, cumulative changes within the Ontario Insurance System means that cases are taking longer to settle and plaintiffs are experiencing denial of their benefits more often. Such financial pressures set the stage for a premature settlement, which ultimately limits how much plaintiffs receive out of their injury claims.
At Finance Bound, we believe that the cash flow issues should not inhibit a firm’s growth, nor should it affect the outcome of a legal case. Our lending programs ensure that a case has the potential to realize its full value so all parties concerned are taken care of.
THE BENEFITS OF DISBURSEMENT LOANS
Bottom-Line Growth
Take on as many clients as you desire and grow your legal practice without the burden of cash flow shortages.
Access to Experts
The value of a client’s claim depends on a variety of factors, including timely access to quality experts. Defer subsequent financial outlays with the use of a disbursement loan until a settlement is obtained.
Manage Cash Flow
A law firm’s cash flow cycles experience many highs and lows. Utilize our programs to assist with overheads and routine expenditures during periods of lighter cash flow.
Tax Advantages
Utilize the cost of borrowing as deductions to minimize tax liability.
DISBURSEMENT LOANS
Manage disbursements with funding against the value of a file.
- The borrowing party is the law firm (client signature and/or acknowledgement not required).
- Recover disbursements already invested on individual files rather than waiting for reimbursement upon settlement.
- Defer new (current) disbursements.
- Approvals are based upon individual files (not the law firm).
- Defer principle and interest payments, if desired, to further assist with cash flow.
LAW SUIT SETTLEMENT LOANS / ADVANCES
Manage disbursements indirectly with the use of a Plaintiff Settlement Loan.
- Borrowing party is the client (Plaintiff).
- Receive the funds in trust and utilize the loan as a line of credit, drawing from it as required disbursements arise.
- Defer principle and interest payments, if desired, to further assist with cash flow.
ASSESSMENT LOANS
- Compensate your service providers upon services rendered without affecting your cash flow.
- We factor the account receivables in question, thereby deferring costs until settlement.
LET’S TALK ABOUT YOUR OPTIONS
Get in touch with us to discuss your options. There are a few ways to get started.
Call Us
We’re available to discuss your needs anytime.
Submit an Application
Fill out our Quick Evaluation form and we’ll get in touch with you right away.
General Questions
If you have a specific question and prefer to email us, please visit our contact page and send us a message.
Banks offer term loans, credit cards and lines of credit. While interest rates are lower on some of these products, they do not necessarily help with cash flow and they potentially create personal liability. Debt service cannot be deferred and loans are not typically setup as quickly as is the case with a disbursement loan.
With respect to cash flow, high volume practices will require a significant outlay of capital investment in order to sufficiently develop a legal case. Traditional lending can finance such an costs, however the debt service on these loans may not be feasible for practices that already experience high overheads.
As with all lending solutions, all options ought to be considered for the best possible mix of lending to meet your firm’s needs. It is best to have multiple lending products at your disposal as each product is designed to address specific needs.
In the event that your firm ever requires a quick loan with deferred options so as to assist with cash flow, Finance Bound is always available to help.
If you find yourself opposed to obtaining a settlement loan for your client, keep the following considerations in mind:
Availability
A simple online search will yield plenty of options for your client. As such, with or without your help, your client will seek out a solution. The only draw back to them doing it alone is that they’re likely to encounter a pre-settlement loan broker. Inadvertently, this approach will cost them more fees, whereas working directly with lenders will fetch better rates for your client.
Need
The desire for a pre-settlement advance is usually precipitated by a genuine need. Often, clients require funds to pay bills or other unavoidable expenses.
Client Satisfaction
A successful law practice is always built upon referrals. When a client is happy with the service they receive, the trust and rapport they develop will always ensure their return and/or recommendations. Resisting their desire to obtain an advance, especially when it is based upon a genuine need, can potentially harm the relationship with your client as well as restrict future referrals. On the other hand, having quick access to pre-settlement advance solutions can further build the relationship with your client, particularly if funds are obtained and released fairly quickly.
Whether a disbursement or a law suit settlement loan makes sense for the particular client in question, consider adding fund advances to your arsenal of solutions for your clients.
Call us today to discuss your options.