Attorney Funding FAQ
How does TriMark Legal Funding LLC assist law firms?
TriMark Legal Funding LLC (TLF) provides contingency based law firms with the financial resources they need so they can continue to operate through periods of limited or no cash flow. TLF arranges law firm financing to individual attorneys and law firms based on the creditworthiness of the borrower and the amount of fees expected to be generated by the firm.
What is litigation financing exactly?
Litigation financing, attorney fee acceleration, law firm loans and working capital lines of credit are terms used to describe legal financing provided to trial attorneys and all types of law firms that work on a contingency basis. This type of funding provides attorneys with the means to properly mount a case against well-funded defense firms representing large, deep pocketed corporations and insurance companies. It can also provide the financial means for smaller firms to leverage their caseload, and in the of fee acceleration, it can allow attorneys to leverage the value of their earned, pending fees for immediate use.
Can interest on loans used for case costs be included in case expenses?
Many jurisdictions allow for a “reasonable” amount of interest to be charged for loans that are taken out by the firm and are used for direct case expenses to be included in case costs. Check with you local bar association for specific practices that are permitted in your area relating to your situation.
How can litigation financing be used?
Litigation financing is available for a wide variety of uses. There are virtually no prohibitions on how the funds can be used and are frequently tapped to pay for case and trial costs, hire expert witnesses, general operating expenses, litigation support, tax distributions, travel and other discovery expenses, depositions, marketing and business development.
In addition, financing is available for fee advances on settled cases, verdicts and cases on eligibility/appeal.
Who is eligible for litigation financing?
Lawyers and law firms that work on contingency comprise the vast majority of our clients. We also assist firms with mixed revenue sources including a combination of contingent and hourly fees. We understand how law firms operate and we work closely with attorneys and law firms that have less than perfect credit histories.
What types of cases can be consider as collateral for the loan?
Cases where you are paid on contingency.
What stage of litigation do the cases need to be in in order to be considered?
Virtually any stage – from pre-litigation to settled cases and jury verdicts to cases on eligibility/appeal. TLFwill take the case stage into consideration when determining an advance amount and structuring the loan.
Are there restrictions on how the funds can be used?
There are generally no restrictions on how the funds can be used.
How much is available?
TLF will advance from $25,000 up to $3 million. We will evaluate each applicant individually and lend much as financially warranted and will work with each applicant to determine how much is right for their individual situation.
When does it need to be paid back?
Loan term is typically two years, but generally the borrower repays their loan much sooner, in part or in full, as the borrower receives fees and expense reimbursement from settled cases.
How is the loan paid back?
Loans are repaid from the proceeds of settled cases as fees and reimbursements are received by the attorney.