For many years, financing options for law firms were limited to bank loans and other conventional methods, which often required partners to risk personal assets to secure funding for business growth and operations.
Law firm funding is a secure financing alternative that enables partners to avoid exposing their personal assets. How? By recognizing the value of legal cases and accepting that value as collateral. This allows law firms to access quality resources for cases, secure better outcomes, and apply capital to business costs and growth.
Traditional financial institutions lack the legal experience and expertise required to evaluate the potential value of legal cases and portfolios. It’s just not what those establishments do. And because conventional lenders do not accept pending legal cases as collateral, law firm members and partners often offer their personal assets to secure capital.
This is an important distinction of specialized law firm funding. At Pravati Capital, we understand the law firm business model, and we have the ability to evaluate a firm’s true assets and provide funding accordingly.
Cash flow needs can be a hindrance to business growth, especially in markets like the legal field, where contingency payment agreements are common and assets may be tied up in litigation. Law firm budgets include items related to standard business operations, as well as some atypical expenses:
These costs of doing business can negatively impact and inaccurately skew an attorney or law firm’s credit rating and bottom line.
Cash flow needs can be a hindrance to business growth, especially in markets like the legal field, where contingency payment agreements are common and assets may be tied up in litigation. Law firm budgets include items related to standard business operations, as well as some atypical expenses:
These costs of doing business can negatively impact and inaccurately skew an attorney or law firm’s credit rating and bottom line.
Law firms need financing options that are aligned with the legal business model. Working capital is critical to any firm that wants to invest in stability and growth while cases are pending. Look for features like these when selecting a financing partner:
When attorneys or firms want even more flexibility in a funding agreement, a line of credit can maximize cash flow but offer the freedom to draw upon the available resources only as needed. The best financing partners offer a line of credit based on the collateral of a single case or portfolio of cases.
Funds drawn from attorney or case cost lines of credit can pay for investigators, experts, legal staff, or other litigation expenses. These withdrawals can also be applied to ongoing legal business costs, such as marketing or office expenses.
At Pravati Capital, we’ve built a team of experts with specialization in the legal and financial industries. This experience allows our underwriters to examine complex cases and evaluate strengths and weaknesses in a single case or a legal portfolio. Our ability to offer adept analysis minimizes risk, which means we can provide capital on favorable terms.
With financing from Pravati Capital, law firms can avoid referring valuable cases to competing firms or splitting fees with other attorneys to cut costs. Handling complex litigation or contingency fee arrangements become feasible. And firms can build relationships, grow, and thrive.
If your law firm needs a flexible financing alternative, contact Pravati Capital for a free, confidential evaluation. Call 844-772-8284 or contact us online. We can help you turn your legal assets into working capital.
