What is Case Cost Funding?
Case cost funding is a line of credit that contingent-fee law firms can use to pay for experts, medical records, and other case expenses they need to fund to win the case for their clients without getting their own cash trapped in their cases. Contingent-fee law firms that fund their own cases are essentially making interest-free loans to their clients. Law firms who use case cost funding are able to get their post-tax profits out of their cases and spend them how they want to spend them.
The law firm pays monthly for the interest on their line balance. If implemented properly, the cost to the firm is next to nothing because the firm can recoup the borrowing costs at the successful conclusion of every case that they win. When a case concludes, the firm uses the proceeds from the case to pay the principal borrowed for case expenses. By using our money, you can get your post-tax profits out of your cases and back into your bank account.
How Case Cost Financing Works
To get started with case expense funding, fill out our application. If our credit committee determines your firm qualifies for our line of credit, you will be able to submit a funding request through AdvoTrac®, our proprietary software platform.
You pay us monthly for the interest on your line balance. When a case concludes, your firm will use the proceeds from the case to pay the principal borrowed for case expenses. Our friendly team of experts will be there to help you throughout the entire process.
If implemented properly, the cost to your firm is next to nothing. In addition to our rates being very reasonable, our services enable your firm to get reimbursed from your cases for 100% of the cost of our services on the cases that you win. So the net cost to your firm is close to zero.
Our clients are among the best and brightest trial law firms from all over the United States. They are all successful law firms that could fund their cases on their own, but their owners recognize that making an interest-free loan (your case expenses) is a poor business practice.
Financial Benefits of Case Cost Financing
Like every other successful trial attorney, you have thousands of your personal, post-tax dollars trapped in case expenses that do not earn interest and are not tax deductible.
When you fund your own case costs you are essentially making an interest-free loan to your clients for the length of their case and trapping your money in your firm until you retire.
It used to be that there was no way to get your money back until you retired and wound down your practice… but we've created a solution to that problem. Wouldn't you like to get your money back?
Get Even Better Results For Your Clients
Case financing allows your firm to make the best choices for your clients. You can choose the best experts and support services needed to win the case without concern for how it will impact your cash flow.
Case Expense Financing Versus Your Local Bank
We offer law firm financing at an annual cost of Less than 1%*. With your local bank, funding will potentially cost about 7% to 10% annually. Many banks do not understand non-traditional assets like cases. We understand your business model and the value your cases hold.
Enhance Your Cash Flow Management
Even in the most successful law firms, cash flow can fluctuate significantly. You may settle a large case one month but then not settle another for several months. Our service smooths out the valleys for you by replenishing the funds you have spent on case expenses.
Level The Playing Field in Court
The defendants and insurance companies you face in court don't finance their cases with post-tax cash out of their own pockets, and neither should you. Case cost funding levels the playing field for your firm and serves as a benefit for your clients.
Strategic Advantage Over Other Plaintiff Firms
The ability to free up more working capital is a strategic advantage over rival law firms. Our service allows you to take your cash out of your case expenses and invest it in the expansion of your firm through advertising, hiring staff, purchasing equipment, etc. You no longer have to give up large percentages of your fees to another firm or work with banks that don't understand your business. We make it our business to understand your business.
Enhance Expense Tracking Accuracy
Our clients tell us that our careful tracking of case expenses is a terrific way to ensure they remember to recoup all of their expenses at the end of each case. We help you stay organized and increase your firm's productivity.
Grow Your Firm
With case expense funding, you free up your receivables to spend on marketing costs, operating expenses, higher-value cases, and firm growth.
Take on More Cases
Your firm can help even more clients with the financial support of case expense funding. You can take on more cases without having to worry if you will have enough money to fund case expenses and run your business.
Enhance Your Compliance With IRS Regulations
According to an Internal Revenue Service ruling (PLR 8246013), law firms are not supposed to deduct reimbursable case expenses from current-year income. Using our services makes proper compliance less painful. For more information, visit our IRS page.
Benefits at Little Cost to Your Firm
Our case expense funding product enables your firm to get reimbursed from your cases for 100% of the cost of our services for the cases that you win. So the net cost to your firm is close to zero. Request a detailed proposal for your firm including exact costs.
Case Cost Funding With Advocate Capital
Our case expense financing clients have access to AdvoTrac®, a proprietary software platform created by Advocate Capital, Inc., for the tracking of lines of credit on a case-by-case basis. It is the case-by-case tracking of borrowing costs that makes it possible for our clients to reduce their net cost of capital to below 1%* (on average) by recouping their borrowing costs from their cases.
We've invested decades and millions of dollars to produce the best software for law firms to track their lines of credit case-by-case, and we are improving it all the time with the help of our law firm clients. At Advocate Capital, we understand how contingent-fee law firms work, and we value what you do to fight for justice for your clients. We want to help your firm grow financially and get the best results for your clients.
Our Reps Will Find the Best Solution For Your Law Firm
Our Directors of Strategic Solutions can help you figure out what financing solution is best for your law firm. Click here to find your rep. They will learn about your firm, answer any questions you have about our case expense financing service, give you a demo of our AdvoTrac Case Expense Financing Software, and help you apply. Your Director of Strategic Solutions will follow you through your first year as a client with us before introducing you to your Executive Client Manager.
To learn more:
- How it Works
- Frequently Asked Questions
- Top 10 Reasons to Enroll
- It’s Your Money
- Request Sample Fee Agreement Language