Lawyers Funding Group provides working capital for litigation for operating expenses or fee acceleration for personal injury and class actions cases pending Lien Resolution, Court Approval, statutorily delayed payments and verdicts on appeal. LFG will also evaluate Mass Tort portfolios and invest in Joint Venture Marketing campaigns. We are not a general credit line provider with a monthly payment and lien over an entire portfolio of cases. Our company will underwrite a single collateral asset which must have fees estimated at a multiple of the advanced amount depending upon the estimated value and time of repayment with no restriction on subsequent financing of your other asset receivables. We require at least one other partner to acknowledge our Lien except for solo practitioners. We do not require signatures from a spouse or a personal financial statement. See How it Works | Our Explanation Video
FEES – TERMS - FEATURES
- Min advance is $10,000 - Max $250,000.
- Our standard fee is 5% per month simple - no compounding - 30 day minimums.
- Fees are tax deductible and may be charged to your client with disclosure and approval.
- Your own working capital is NOT deductible.
- There are no closing Fees and no monthly payments are required.
- Payment is not contingent upon, but due upon the liquidity event.
- No pre-payment penalties - Partial payments accepted towards principle so long outstanding fees are also paid.
- Lower rates are offered to customers who re-apply after repayment of one transaction.
- There may be a one-time fee deducted, not to exceed 5%, if you were referred by an outside broker.
NO CREDIT CHECKS - NO MONTHLY PAYMENTS
A simple inquiry to obtain and review a credit profile will actually lower the applicant’s credit score which is a “numerical fiction” designed to protect lenders from allegations of discriminatory practices. Moreover, a revolving transaction will also lower the applicant’s debt-to-income ratio making it even more difficult to obtain future credit. Factors which influence a credit score bear little relevance to the ability to repay or the integrity of the applicant. Because we do not require monthly payments, an applicant’s prior history is not relevant to Lawyers Funding Group. Rather, we are underwriting a future liquidity event which triggers repayment at a time when the lawyer will have adequate funds. When you have interrupted cash flow the last obligation you need is another monthly payment. Our fees are reasonable but slightly higher because of the additional cost we incur on your behalf for debt service and the risk of an increasing rather than a decreasing balance. We always seek to maintain recourse, however, in the event we are timely notified the receivable will not be paid LFG will attempt to substitute another acceptable collateral with a partial payment. LFG will obtain a public records search which provides an abstract of prior UCC filings, tax liens, judgments or bankruptcies. None of these situations by itself would serve as a basis for rejection as each of these situations provide unique follow up.
UCC SALE - ASSIGNMENT
The funding Agreement provides that Lawyers Funding Group has Purchased and you have Sold in full a particular Account Receivable. In most cases we will file a UCC lien identifying the specific receivable or receivables assigned as collateral. The description thereafter defaults to general unidentified receivables should the liquidity event not occur and the receivable will not be recovered. The filing with the Department of State of the attorney’s residence does not include amounts advanced or due and may not be filed for a portion of an identified receivable. Once you case is resolved and your fee is paid, there is a right to Repurchase and Redeem the Account Receivable by paying the Advance Amount plus all accrued fees. In the event of an intentional default. Lawyers Funding Group has successfully advanced its legal position that its collateral has been Converted from the Attorney Trust Account giving rise to damages for LFG to seek judgment for the entire amount of the receivable assigned.
Some of our competitors purport to offer a lower monthly rate with a "closing fee" as high as twenty (20%) percent and accrue further fees based upon this portion of money which was never received. In addition, you may be required to authorize automatic ACH payments so that you are not in control of your future cash flow. In the event the ACH does not process for insufficient funds, the funding rate substantially increases and the Funder has the option to require the entire advance be repaid.
Other pricing models include lower monthly or quarterly compounded fees, however, they are often billed in quarterly ninety (90) day cycles such that your total cost is greater regardless of whether you remit payment upon receipt of your legal fee or wait until the end of the current cycle.
Other companies which provide general lines of credit with monthly payments have call options after one year. We will never expect repayment so long as you are not in Default and you have not resolved the case for which your fee has been assigned.
In order to expedite underwriting and obtain maximum higher approval amount please upload or forward by email documents for cases in the following order:
- Settled pending approval or other lien resolution.
- Cases with a written offer.
- Verdicts or Judgment in favor of plaintiffs on Appeal.
- Cases which are in suit with a Docket/Civil Action number.
- Cases in which there is a demand letter
In most cases we are able to complete underwriting within 2-3 business days and to provide funding within 2-3 business days upon execution of documents. Factors which may delay include extensive commercial or medical malpractices matters, holiday or seasonal times of the year and requests for funding over $50,000. It is possible to have the process expedited but without guarantee.