Over the past several months the Road Accident Fund (RAF) panel attorneys have been facing significant challenges due to the separation process instituted by The Road Accident Fund.
During this period numerous defendant attorneys have reached out to us, not only to discuss their need for financial support during this transitional phase, but also to seek advice on their strategic options moving forward. The word “pivot” has been widely used in the context of general business’ need to refocus their offerings in light of the financial constraints imposed by the Covid-19 pandemic. But it could not be more apt in terms of the pressure on these RAF panel attorneys to realign their skills and value proposition in order to remain relevant in the personal injury legal landscape.
Taurus Capital differs to traditional lenders such as the banks in numerous ways. As a team comprising attorneys, actuaries, business development and financial experts, we partner with our clients to provide best-practice and expert guidance to deliver solutions with their best interests in mind.
We assign value to intangible assets such as book debts, mandate and fee agreements, invoices, court orders, and taxed bills of costs. This allows us to recognise inherent value in a practice that is often overlooked by traditional lenders, resulting in greater working capital facilities and repayment structures aligned around the firm’s unique cash flow cycle.
This bespoke approach provides enormous value for law firms and attorneys who have specialised in Road Accident Fund defendant work. There is great demand for working capital to sustain these firms’ overheads through this period of uncertainty as well as a need for expert insights into the potential restructuring requirements facing these firms.
It is certainly not the end of the road for these RAF panel attorneys, whose expertise and experience are of enormous value in other facets of the legal sphere. Options include pivoting to a career as a plaintiff-attorney against the RAF, specialising in medical negligence work or becoming a Workmen’s Compensation expert. Other avenues comprise pursuing a commercial litigation career or specialising in administrative or employment law.
In our numerous consultations with this pool of defendant attorneys, Taurus Capital considers the short and long-term operational and financial requirements of these firms in addition to their personal objectives for their business. Our seasoned experts construct tailormade proposals, specific to their needs and prospects. These working facilities will generate a high return on investment in the medium to long term and underpin these attorneys’ new ventures with the security they desperately need.
Some have considered using the money they will recoup from the RAF in the future to fund a new practice. In principle this is an option, however, this strategy may take many months to materialize, and will preclude the extensive benefits of third-party funding and the value in partnering with a tax-efficient funder.
Taurus Capital’s facilities range from R250 000 to R30 million per firm. We do not have a ‘one size fits all’ approach when evaluating repayment solutions. We take into consideration the current Road Accident Fund climate as well as each firm requirements and cashflow cycles, offering a solution bespoke to each of our client’s requirements and designed to fulfil their long-term realigned vision.
About Taurus Capital
Taurus Capital delivers multi-faceted investment and financial solutions that drive sustainable business optimization for law firms. Legal firms need to mitigate risk and cost in the context of the unpredictable, lengthy, and often illiquid nature of their work. Financing is often hampered by cumbersome processes that deter growth opportunities.
Taurus Capital specialist services include law firm finance, litigation funding, and wealth and investment solutions for law firms. Each is delivered after an extensive consulting process.