How It Works - Settlement Funding

Strategic Finance for Law Firms

 

Summary:

 

In general, ACI’s Settlement Funding product is a purchase of future legal fees and expense reimbursements due to a firm on a particular settled case.  If approved, ACI purchases those future revenues by making two payments to the law firm.  ACI first pays 50% of the expected revenues up front.  Then, once the actual disbursements are made by the defendants, ACI pays the other 50% LESS ACI’s fees.  ACI’s fees are determined by how long it took to collect the final disbursement.

 

Below is a detailed, step-by-step explanation of a typical Settlement Funding transaction.

 

Step 1:  You obtain a signed settlement agreement on a particular case, in which a rated insurer, government or corporate defendant agrees to pay a particular sum… 

 

 

Step 2:  You complete the quick screening application (click here) and we give you an initial decision, usually in less than 24 hours, on whether or not your application qualifies for a full review…

 

 

Step 3:  If your application clears the initial screening (above), you complete the Full Settlement Funding Application (click here) and send the required supporting documents.  We then give you an approval decision usually in less than 48 hours…

 

 

Step 4:  If your transaction is approved, we will send the necessary documents to you via Fed Ex, and you sign and return them in kind…

 

 

Step 5:  Upon receipt of the properly executed transaction documents at our office, ACI will wire funds to your bank equal to 50% of the fees and expenses owed to your firm on the settled case.  This is called the “initial purchase price”

 

 

Step 6:  Eventually, the defendant will make the payment for the settlement, typically into your IOLTA account.

 

 

Step 7:  Per our purchase agreement, you send us all fees and reimbursed expenses originally due to your firm on the case:

 

 

Step 8:  After deducting our fees (which depend upon how long it took for the defense to pay), we send you the other 50% of fees and expenses.  This is the “subsequent purchase price”