What is Law Firm Finance?
Law firm finance is where a litigation funder provides capital to a law firm secured against a portfolio of contingent clams. The investment and return are spread across this portfolio of claims, giving firms accelerated financing, delivering faster service to clients and avoiding any burden of debt. And because the finance is secured across a number of claims, the levels of risk and therefore the cost of capital are reduced.
Through this approach, funders like Woodsford provide financing for firms where the return is conditional on their success in a wide range of litigation or arbitration cases. This financing can typically be used for any purpose, including recruitment and expansion plans.
Law firm portfolio finance has a number of advantages over bank loans and partner equity, not least that the financing is non-recourse, meaning the funder gets a return only in the event of a success in the cases within the portfolio.
Woodsford is a founder member of both the International Legal Finance Association and the Association of Litigation Funders.