Injury Case Funding for Attorneys
Attorney Tyson Mutrux describes in this video injury case funding for personal injury attorneys.
Hi, Tyson Mutrux here again with the Mutrux Law Firm and today I’m going to be talking about case funding for attorneys. Now, I’m not talking about case loans. If you’ve got an injury claim, or you’re a potential client and you want to get some information about case loans, that’s in another video. So exit out of this video, get back in and there are other videos on case loans on the website. This is for attorney’s only.
Whenever it’s a bigger case that they can’t really afford themselves. But as an attorney you really have two options. There are a couple others, but your two basic options are that you either refer your case out to another attorney or you can co-counsel with them as well, and you split the fee with them. That’s one option and if you think about it, that’s a very costly option for you because it’s going to cost you about 50% of your fee at least. If you refer it out it’s probably going to cost you 60-80% of your fee so it’s a very expensive proposition. If you have the skills to actually take the case on yourself, the knowledge in your skills, and the resources other than money then you can get case funding. Case funding they are just like banks, like lending institutions and you take the case to them, they evaluate it and they’ll lend you money. A lot of times it’s like a line of credit. You borrow against it as you spend more money on the case and you pay an interest rate on that. A lot of times it’s not a pay as you go, it’s out of the final amount of settlement that you get, or the verdict. So that’s a big bonus to you because that means you don’t have to shell out money every month to pay off a loan, you actually pay it off at the end of the case which is a huge benefit.
But I caution you, just like a case loan for a client, it’s extremely expensive. It’s not going to as expensive as referring it to another attorney, but it’s going to cost you a few points. So just remember that. It’s not going to be something that’s going to be cheap and you’re going to pay back a couple bucks in interest, no that’s not how it’s going to be. If it’s a higher end case– the reason why you’re actually borrowing against it, it’s going to be a lot of percentage points. So it’s going to cost you several thousand dollars probably. But again, it’s going to save you money as compared to actually referring out to another attorney.