Litigation funding gives lawyers and law firms freedom from the problems associated with conventional lending options. Bank loans weigh down your balance sheet and can affect the personal credit of the guaranteeing of the firm.
Litigation funding does not impose these burdens. Instead, practitioners, firms, and legal departments can use their best assets—their caseloads—to further client and firm interests. With such positive benefits, the only question you may have remaining is, “How much can I get?”
Attorneys exploring litigation financing want to know the amount of law firm funding available. As you may suspect, the amount financed is directly related to the value of the underlying collateral: your caseload. The more value in your cases, the more you can finance.
Your caseload can do more than represent a future income stream on paper. Those cases can create dollars now through litigation funding. One or more of your cases can serve as collateral to support litigation or to sustain or grow your firm pending the .
The underwriting of litigation financing involves a review of basic information on the nature of the cases pledged as well as relevant law. If that review confirms your anticipation of prevailing, any financing package would be based on the value of the anticipated proceeds.
In other words, the extent of funding available is defined by the value of the case or portfolio of cases you pledge as collateral.
The nature of the case or cases used as collateral also helps define the amount of law firm funding available. Litigation financing is available for almost any type of case but is often used in the following areas:
Funding amounts vary depending on the type of cases used to secure funding.
Leveraged transactions often involve risk, but law firm funding minimizes that risk by keeping you in control. You remain in the driver’s seat over the direction of your cases. In the unlikely event a pledged case does not prevail, it’s still a win for you. That’s because litigation financing is non-recourse funding. In other words, you repay the financed amount only if you win.
Would you like to learn more about how one or more of your cases can create cash flow? For more information on litigation funding sizes and litigation financing in general, contact the seasoned law firm funding specialists at Pravati Capital by calling 844-772-8284 or complete our online contact form.