An alternative to Practice Funding and Loan Finance is Costs Funding.
Costs Funding allows firms to unlock finance from their existing case load to effectively accelerate cash flow into the practice. There are no restrictions in terms of the use of the finance but of course the finance can be used for marketing or Referral Fees to increase caseloads.
Cost Funding is provided as a joint initiative between a Cost Drafting firm and a Lender.
A firm will submit a file for costs drafting in the first instance. Once the file has been checked and the bill prepared the firm will usually be able to draw down up to 70% of the profit costs assessed under an agreement with the Lender.
The Costs firm will then proceed to recover the costs and will then discharge the loan element directly to the Lender on recovery of the costs, including interest. In some instances the Lender will require interest to be paid on an ongoing basis.
PCC has relationships with a number of Costs Funding Business Partners.
Costs Funding is usually short term and as a result the overall funding costs are significantly lower than other types of funding, however Costs Funding does require a firm to have a mature case load with costs ready to be realised.
If you are interested in Costs Funding please contact PCC to discuss your requirements in more detail.