Top 5 Reasons to Borrow for Case & Trial Costs

“It’s better to negotiate a settlement after you’ve received a favorable verdict than before” proffers one  successful trial lawyer.   In other words – dealing from a position of strength will reap better results.

Successful Attorneys Borrow at Case Funding

His strategy over 30 years in practice has been to carry only a small number of very good cases that would settle for large sums and generate substantial legal fees.  This meant however, having to judiciously manage the firm’s cash flow, as the timing and amount of his revenue was unpredictable and uneven at best.  His cases also tended to require significant investment in experts and litigation support.

So how did he do it – how did he carry all his firm’s expenses between wins, and how was he able to take on such large and expensive cases?

Case Cost Financing – A Viable Option for any Trial Lawyer

This attorney understood the benefits of Borrowing for case and litigation costs. He knew that with a reliable source of capital in between paydays, he could not only carry his existing cases to a strong finish, he could also take on more clients with confidence.  He turned to Case Funding Inc. – Litigation Financing for Attorneys and Law Firms.

Lawsuit financing enables attorneys to strategically try cases on their own terms and schedule while hiring the best experts & services available. Consider the top 5 benefits of borrowing:

1. Leveling the Playing Field

Over time, this Trial attorney learned that when the defense actually knew he was well funded – that he could go toe-to-toe with their deep pockets for as long as was necessary – they were more inclined to take him seriously. Often, he even went out of his way to make sure the defense knew he had all the funding he and his client needed to hire the best experts and to take the case all the way to trial.

2. The Real Cost of NOT Borrowing for Case Costs

When compared with turning away business or having to refer out cases, this attorney understood that borrowing at almost any cost was a great way to invest in his cases and offered a real return he couldn’t find anywhere else.  His philosophy was that if he believed in the case, the cost of the litigation financing was just another cost of doing business.  And like any business expense the interest and any fees are deductible for tax purposes. Add to that the opportunity cost and other complications of using his own money, and it became a no-brainer to borrow.

3. Including Interest Charge in Case Expenses

Many State Bar Associations Permit Attorneys to Recover Interest and Loan Fees from Settlement Proceeds

In an October 2011 white paper on alternative litigation finance, the American Bar Associations Commission on Ethics found it acceptable that Lawyers financing a lawsuit with borrowed money may pass the interest costs onto their clients as long as the financing charges comply with the reasonableness standard of Model Rule 1.5(a). The ABA acknowledges that “the cost of a protracted lawsuit may exceed a law firm’s ability to finance these expenditures out of its ordinary operating budget.”

Many state ethics opinions have considered this issue and concluded that it is acceptable to pass on to the client interest charges on funds borrowed in order to finance the costs and expenses of litigation. States have their own requirements on disclosure to the client and the “reasonableness” of the interest rate charged. Attorneys are advised to consult with their local state bar association for the latest rules in their home state.

4. Banks Just Aren’t Cutting it for Law Firms

Like most attorneys, this trial lawyer thought the obvious place to borrow was from his bank – why not, he had been a customer for over twenty years.  Unfortunately, his bank didn’t know how to evaluate the potential revenue from his cases and, like most traditional banks, was generally precluded from lending against his contingency fees.  They did not appreciate the value of his most valuable assets – his cases.

5. Maximize Your Profits and Minimize Your Headaches

With a loan from Case Funding Inc., you can focus on what you do best— winning your case. A credit facility from Case Funding relieves your cash flow problems and gives you the financial freedom to spend what you need to maximize the settlement of your case.

We Can Help With Your Cash Flow Needs

Case Funding Inc. is a New York based specialty legal finance lender and industry leader in providing litigation funding solutions to attorneys and law firms. Our working capital loans enable attorneys to invest in their cases and to pay for high quality experts and litigation support costs, cover operating expenses, finance business development and marketing campaigns and better manage cash flow overall.

We’ll enable you to take on deep-pocketed defendants and avoid premature settlements so you’ll NEVER have to SETTLE FOR LESS.

The Case Funding Inc. Attorney Loan Model:

Case Funding has flexible loan terms developed specifically for Law Firms.  Case Funding Inc. loan terms include:

  • Loans range from $25,000 to over $1 million – there are no restrictions on how funds can be used.
  • Loan amount is based on several factors including: the fees that the firm is expected to generate, the financial strength of the firm and the credit profile of its principals.
  • Monthly payments covering only a portion of the interest due.
  • Flexible repayment – as cases settle and fees are received the borrower pays down the loan balance.


Call Us Today! To find out more, please explore For questions specific to your Law Firm, contact Richard or Leon at   888-248-2866 or make an appointment online.

Case Funding Sponsors The American Association for Justice (AAJ)

Case Funding is endorsed by APITLAmerica (Association of Plaintiff Interstate Trucking Lawyers of America)

Case Funding Inc. is a New York based legal funding lender and industry leader in providing litigation funding solutions to attorneys, law firms and personal injury and product liability victims. Working capital loans allow attorneys the freedom to invest in their cases and pay for medical experts and litigation support costs, operating expenses, business development and marketing campaigns and better manage cash flow overall.