When speaking with a Personal Injury attorney and inquiring how they handle their Pre-Litigation or Litigation case expenses, the typical response involves tapping into their operating account or relying on a line of credit. However, delve a bit deeper, and you’ll find that a staggering 9 out of 10 lawyers have no idea about the amount of money entangled in their current cases. It’s a shockingly common scenario in the realm of Personal Injury law, where an outdated and somewhat draconian business model persists.
Consider the strain on a new or young law firm when operating accounts bear the brunt of case expenses. Imagine the challenges faced by a firm during months of unsettled cases, where operating expenses still need covering. Daily battles like these underscore the need for a more progressive approach that allows firms to grow unhindered by tied-up funds.
Now, let’s examine law firms employing a line of credit. This method introduces limitations, variable interest rates, and a structure where most firms absorb the interest losses instead of passing them on to clients. These losses can mount to tens of thousands of dollars, especially when cases extend beyond expected settlement timelines and interest rates spike within a year.
At Capital Financing, we pose a crucial question to plaintiff lawyers: If there existed a more sensible and innovative business model for covering case costs, would you consider it? Many astute legal minds recognize the obsolescence of their current model when presented with a compelling alternative.
For a deeper dive into how Capital Financing can introduce you to a more innovative way of covering case expenses—free from the constraints of a bank line of credit or operating account—reach out to us at info@injuryfinancing.com or call 404-348-4475. Speak to us about our Case Expense Financing program, and let’s explore the possibilities together.
