It’s no secret. New cases are the life-blood of any law firm.
Most practices need anywhere from a few dozen to hundreds a year to maintain a viable business. Fortunately, once you get a case, paying for the upfront cost of litigation is now fairly easy and financially manageable for most firms thanks to something called litigation funding.
Try the case now. Pay for it later.If you’re not familiar with litigation funding it’s been around for decades but has become more popular recently. In fact, litigation funding has grown 414 percent in the United States from 2013 to 2017, according to a 2017 report by Burford Capital and it is now a multi-billion-dollar business. It’s basically a loan that’s based on a well-calculated bet that funds plaintiffs and law firms engaged in cases there it looks like they will get a favorable ruling.
The great thing about litigation funding is…
Not only can litigation funding be used to pay for attorney fees and expenses incurred when prosecuting or defending a case, but it can also be used to pay for things like business operation costs or to refinance debt. This kind of loan lets law firms spend their money to invest in projects that increase profits and help the company grow rather than tying it up paying for the costs of litigation.
Interest rates on these types of loans typically run between 18% and 22% and are paid back are paid off in 12 to 36 months. Is it for you?
There are a bunch of reasons to use third-party litigation financing.
Your firm might want to consider this kind of financing if…
- You don’t have deep enough pockets to hire top legal talent to prosecute or defend a litigation or arbitration
- You want to keep the cost of litigation financing off your balance sheet
- Your firm has better things to spend its capital on than financing the cost of litigation
- You need to raise capital because your firm has been financially damaged another Party’s wrong doing and you can’t get funding from traditional sources at a proper Valuation until you resolve the dispute
- You want to hedge risk
The not so great thing about litigation funding is that it won’t pay for ad spend.
When done right online advertising can be incredibly successful and cost effective way to gain new law firm clients. Why? Online is where your future clients are. Just take Facebook for example.
- As of just a year ago (March 2019), Facebook had over 2.8 billion monthly active users and over 1.56 billion daily active users
- Facebook adds 6 new profiles every second, which adds up to 500,000 new users a Day.
- 72% all US adults online visit Facebook at least once a month (and they’re trending older these days)
- On average, users spend 50 minutes on Facebook.
The bad news is the cost of acquiring a case online is $1,000 to $2,000.
But once you get through the Payback Period for law firms from when you run the ad, acquire the lead, and then begin the case is typically 4 to 6 months….
The good news is after that, the ROI is phenomenal.
The trick is having enough money to cover your expenses during those 4 to 6 months. Litigation finance isn’t going to be an option, since you can’t get that funding until you actually have a viable case. And if you multiply the number of new cases you need to keep your firm going -- whether that’s 50, 100, 500 or more – by $1,000 to $2,000, the cost really starts to add up. Where are you going to get that $100,000 to $1,000,000 or more to keep that lifeblood of new clients flowing?
The answer is financing your ad spend.
No doubt about it, financing can be expensive and complicated, but if you do it the smart way, it is the best and fastest way to get you where you want to go.
Think of it as taking out a bridge loan that will carry you through the time it takes to get a new case to the time you get the case and can get litigation financing. Until now getting that kind of money to pay for ads could take a lot of time, cost a lot of money in interest and fees, and require guarantees that put your personal assets on the line. Plus depending on your firm’s financial situation, you may not even qualify to get the amount of money you need.
What if there were a better way,
a smarter way to fund your ads?
FUND MY ADS PITCH NOT THE CARD
Growth capital for advertisers 10,000 to 1 Million
There is. And I’d like to give you a little sense of what it is.
It’s a cash back funding option created specifically for online advertisers that gives you up to 7.5% cash-back on every dollar you spend on advertising – and 2 full months to pay for it interest free.
Want to get even more money to spend on ads to acquire clients? Pay early and get double cash back. If you’re using an agency you can reward them with cash back rewards too. And if you’re worried about credit limits, don’t be. We’ll monitor your ad results and the better they do, the more money you can spend.
Listen, you know you need money to pay for online ads that will bring in the volume of new cases your firm needs to achieve the kind of success you and your associates deserve. This is the smartest way to get it.