Bank Rates Plus More Capital
Example Case Study
LAW FIRM
Law Firm X has a $1 million line with a bank and needs an additional $4 million that the bank refuses to provide.
CHALLENGE
Until now, Law Firm X would be required to pay off the low-cost bank rate on the $1 million bank line in order to obtain the $5 million—all of which would have been payable at higher-cost rates.
SOLUTION
The Hybrid Line allows Law Firm X to obtain the full $5 million: however, the rate on the first $1 million in financing will be comparable to the bank rate. Only the additional $4 million is payable at traditional litigation financing rates.
WHAT DOES THAT MEAN FOR YOUR FIRM?
A blended interest rate that is much lower than any other law firm lender can provide.
Benefits of the Hybrid Line™
Launch
Opening a new practice is expensive. Before you even generate any fees you have substantial costs associated with incorporating, rent, payroll, advertising and prosecuting your firm's contingent litigation. California Attorney Lending can provide you with the financing and resources you need to launch your new firm.
Market
Increasingly plaintiffs’ firms need to advertise in order to obtain clients in the extremely competitive legal industry. Marketing is a substantial investment, but it is a necessary tool for any law practice. California Attorney Lending provides you with the financing resources you need to successfully market your firm.
Litigate
Filing fees, depositions, experts, travel and trial preparation are just some of the expenses plaintiffs’ firms must cover. Funding from California Attorney Lending provides your firm with access to the funds you need to obtain the best result for you and your client.
Operate
The timing of law firm fees can be unpredictable—resulting in significant peaks and valleys in your cash flow. Conversely, your overhead expenses need to be covered on a regular and consistent basis. A loan, line of credit or non-recourse advance from California Attorney Lending provides your firm with cash flow stability during the valleys to ensure you can meet your firm’s obligations as they come due.
Expand
Increasing the size of your staff, the geographic area you serve and the number of clients you represent is challenging for a contingent fee practice. Each new lawsuit you file as a result of your growth also increases the financial burden on your firm. A credit line from California Attorney Lending provides your firm with the comfort of knowing you have the capital necessary to fund your expansion.
How We Compare
We have designed our credit lines to be straightforward, without the complex rates and hidden fees of other lenders. Compare how our terms stack up against the competition:
| Features | California Attorney Lending | Other Lenders |
|---|---|---|
| Pre-Payment Penalty | None | 10 - 15% with some specialty lenders |
| Ticking / Other Fees | None | Up to 7% per annum |
| Rate | Comparable to your bank rate + customary rate on additional funding | Customary specialty lender rate |
| Loan Term | 4 years | 1 year |
| Annual Maintenance Fees | None | 0.5 - 2% |
| Balloon Payment | None | Standard with most banks |
| Draw Fees | None | Up to 2% with some specialty lenders |
| Use of Proceeds | Any law firm related expense | Case expenses only with some specialty lenders |