No law firm wants others to know they need additional funds to run their practice. That’s why confidentiality is so important in dealing with a legal funding company. Many firms are concerned that their finances will be revealed to competitors or co-counsel. However, a reputable company should follow these rules regarding confidentiality of your application: […]
When your law firm needs legal funding quickly, the last thing you want is to have problems with your funding application. Funding companies will typically require a range of information about the firm, its finances and the settled case being funded.
In legal funding, the funder buys a portion of your legal fee from settled cases. Often lawyers are concerned that the cases they handle won’t qualify especially if they have a unique practice.
Fortunately for law firms, legal funding is different than financing from traditional lending institutions.
Funding companies should only require a few pieces of pertinent information and generally should be keeping the financing confidential.
In some types of litigation it’s common for an attorney to share or split fees with another attorney. Although you might be more than happy to work with the other attorney, you may not want him/her to know about your firm finances.