25 Jul What Information to Prepare Before Going to a Legal Funding Company
Law firms considering legal funding should begin the process by gathering necessary documentation that funders will need to evaluate their situation. By having the right information ready, the application can be processed efficiently so firms can get the money they need as fast as possible. Although there are differences from company to company, most will require the following information about the firm, its finances and the settled case being funded:
- Type of practice
- Names of equity partners in firm
- Number of attorneys in firm
- Details of any disciplinary action taken against any member of the firm
- Names of prior firms partners were associated with within the last 10 years (or any prior names of this firm)
- Profit and loss statement
- Balance sheet
- Most recent tax returns – both state and federal
- List of UCC liens; bankruptcies (personal and business)
- Inventory of open cases in law firm, including value of case, anticipated attorney fee and status of each case
- Amount of funding sought
- Settlement Agreement and/or Release
- Emails from defendant acknowledging the Settlement
- List of court approvals or orders necessary before payment will be made to attorney
- Retainer Agreement
- Co-counsel, Referral or Fee Share Agreement, if applicable
- Anticipated attorney fee
- Anticipated time to receive payment
One of the many advantages to working with an experienced funding company who knows your firm and business is that the application process can proceed quickly. In many cases, a company may be able to provide funding the same day.
If you are considering legal funding for your firm, contact us to discuss your situation.
To learn more about how the funding process works, check out our Frequently Asked Questions.