Law Firm Finance

GROW YOUR PERSONAL INJURY FIRM

Law Firm Finance

GROW YOUR PERSONAL INJURY FIRM

ACCESS MEDICO-LEGAL FUNDING FOR PERSONAL INJURY ATTORNEYS

Contact us for more information

WORKING CAPITAL

South African attorney firms litigating personal injury matters on a contingency-fee basis have the opportunity to earn significant profits. According to our research, the return on investment for litigating road accident claims can be in excess of 60% per annum, around four times the average return of the JSE.

However, these firms also face several challenges. Prior to litigation, attorneys need to pay out of their own pocket for medico-legal disbursements. Add to this the protracted cashflow cycle of litigation due to the nature of court process and the Road Accident Fund, which causes firms’ funds to be locked up in matters for months, and even years.

The result of all this is that determined partners wanting to grow their firms need access to significant working-capital and a financial partner that understands the intricacies of running a legal practice.

CURRENT MEDICO-LEGAL LANDSCAPE

Medico-legal providers such as medical specialists and actuaries are reluctant to work on a contingency or even a deferred basis. Where they do, their prices are then highly inflated to adjust for the costs and risks involved in waiting for payment.

With nobody else in the litigation ecosystem available, the attorneys are ultimately the ones who need to carry the funding requirements. But while the demand for working-capital in law firms can be large, this is often not matched by an equivalent supply of appropriate capital.

TRADITIONAL LENDERS

Traditional lenders such as South African banks typically have a low tolerance for risk and do not fully appreciate the unique nature of law firm financing. The first thing banks typically require is tangible assets as security against any loan. This may include cash-on-hand, property, equipment and the accumulated assets of the individual equity partners. While asset-backed lending works well for industrial businesses with large capital bases, it’s more problematic for businesses in the professional services which trade in the knowledge economy. For example, traditional lenders would usually not recognise value in many of the law firms’ most valuable assets such as its client base, contingent / differed fees, book debts, mandate and fee agreements, invoices, court orders and taxed bills of cost.

Secondly, banks look to lend to businesses with consistent cash flow patterns. They view the typical up-and-down cycle of a legal firm income with a jaundiced eye. As a result, many law firms, including large and established practices, may only qualify for a small amount of the required funds.

TAURUS CAPITAL

Taurus Capital are a leading finance provider to law firms in South Africa. Instilled in our leadership team is a first-hand understanding of the inherent challenges and opportunities for growth facing the modern law-firm. We are able to provide competitive funding by recognising the intrinsic value hidden within typically unrecognised future income such as book debts, invoices, mandates, fee agreements and court orders. Our bespoke offering to personal injury firms litigating on a contingency-fee basis allows us to structure a facility that meets the growth aspirations of your firm.

BENEFITS

Working capital available for medico-legal costs required in successful litigation

Product structuring to match the unique cashflow requirements of your business

Monetise the intangible assets in your business today

Competitive interest rates

Tax-deductible interest payments

Capital holiday available while you litigate matters

Underwritten by Taurus Capital, a leading specialist lender to the legal fraternity

IF YOU’D LIKE TO DISCUSS MEDICO-LEGAL FUNDING OF YOUR PRACTICE, ENTER YOUR DETAILS BELOW AND ONE OF OUR TEAM MEMBERS WILL CONTACT YOU TO SET UP A CONSULTATION










IF YOU’D LIKE TO DISCUSS MEDICO-LEGAL FUNDING OF YOUR PRACTICE, ENTER YOUR DETAILS BELOW AND ONE OF OUR TEAM MEMBERS WILL CONTACT YOU TO SET UP A CONSULTATION