Prompted by high-profile celebrity cases, you may have noticed a lot of recent news or talk about litigation finance or litigation finance investment vehicles. What is litigation finance?
Litigation finance often involves hedge funds or other investment vehicles with lending structured toward a particular case or group of cases as a means to fund the costs and often fees associated with a specific cause of action or litigation. The wheels of justice turn slowly and as anyone in the business knows, there is no such thing as “a sure thing.” In short, case costs can be extraordinary, there are inherent risks and funds can be tied up for long periods of time. Most litigation investment vehicles mitigate the risk of an unfavorable outcome and the possibility of the long-term investment by lending at high interest rates.
There is however, a much more strategic and cost effective approach to litigation cost funding. Advocate Capital, Inc. has been providing strategic financial solutions to Plaintiffs’ attorneys for nearly two decades at rates that represent a win-win for both the law firm and their clients. In fact:
Our mission is to help an ever-increasing number of plaintiff lawyers get even better results for their clients.
What makes the Advocate Capital, Inc. solution different and more cost effective than other litigation financing investment vehicles? It’s simple. AdvoTrac®. We provide commercial lines of credit to contingent-fee law firms – some of the best and most successful law firms all across the U.S. Our clients utilize the established line of credit to fund all of their case costs as opposed to one or two big cases, significantly minimizing the risks (and cost) inherent to funding one or two big cases. Through our proprietary software, AdvoTrac®, we are able to track the case costs on an individual case-by-case basis, allowing the law firm to recover the borrowing costs as an ordinary case cost, resulting in a net borrowing cost to the law firm of < 1%. This strategic approach spreads risks, significantly minimizes costs for the law firm and the client and frees up the hard-earned revenue lawyers have tied up in case costs.
Want to learn more about how the Advocate Capital, Inc. product can make a difference for your law firm and your clients? We would be happy to share even more strategic financial benefits available to Advocate Capital, Inc. clients. Call 877.894.9724 or click here to learn more.
Senior Vice-President, Client Services
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