Lawsuit Loan FAQs
Litigating personal injury or other cases can be costly, especially for complex claims that are pitted against deep-pocketed defendants. From investing in these cases to covering the costs of your law firm’s day-to-day operations, your financial resources can rapidly decrease, making it difficult to pursue your clients’ claims to the extent they deserve.
When attorneys and law firms find themselves in this situation, they can rely on Delancey Street to provide them with an array of lawsuit funding options that can help them:
- Build the strongest possible cases for their clients.
- Cover their firm’s operating costs
- Invest in business development and marketing efforts and, in turn, the future of their practice.
See the following lawsuit funding FAQs to learn more about Delancey Street’s services. You can also simply call us to find out more about our financial solutions.
How does Delancey Street help attorneys and law firms?
Delancey Street provides attorneys and law firms with a range of financial resources that can get them through periods in which they may be experiencing limited cash flow despite having a substantial case load.
We offer funding to attorneys and law firms in most U.S. states and in the District of Columbia.
While the majority of our clients are contingency-based lawyers and law firms, we also provide funding support to attorneys and firms that:
- Have mixed revenue sources, including those based on hourly fees or flat rates
- May have less than perfect credit.
What types of cases does Delancey Street fund?
Delancey Street provides funding support for firms pursuing a wide range of cases, some of which include:
- Motor vehicle and aviation accidents
- Assault and battery
- Medical malpractice
- Product liability
- Premises liability
- FELA and Jones Act
- Breach of contract and commercial disputes
- Wills and inheritance
- Workers’ compensation
- Employment law (including wage dispute cases, wrongful termination cases, etc.)
- Personal injury (including wrongful death, dog bite/animal attack, burn injury, etc.).
We are continually expanding our litigation funding options for new cases, so don’t hesitate to contact us to find out if you are eligible for funding based on a specific type of case you or your firm is handling.
What lawsuit funding options are available?
Delancey Street can provide attorneys with lines of credit, lawsuit loans and/or cash advances. Our Legal Finance Specialists will work closely with you and your firm to develop the best funding package to suit your needs and circumstances.
How much does lawsuit funding cost?
The specific costs of our funding solutions will depend on a number of factors. In general, however, there will be underwriting fees and possibly structuring fees. These expenses are typically added to the balance of the note or advance so that our fees are paid for when you eventually bring your cases to a successful resolution.
What are the monthly payments?
The cost of monthly payments will specifically depend on the loan amount. However, Delancey Street will always work with each borrower to develop a payment schedule that specifically meets their needs and cash flow expectations.
What are the terms?
The terms of our lawsuit funding options will depend on the specific funding package an attorney obtains, as well as the specific level of risk associated with the attorney’s cases. Generally, however, the terms of our funding solutions will range from one to four years.
How much of funding can I get?
Delancey Street can lend attorneys and law firms anywhere from $25,000 up to $1 million, depending on their needs and situation.
At what stages do cases need to be in to be considered for funding?
Cases at nearly any stage of the legal process – from negotiation, discovery, and trial-preparation, to trial and even appeals – can be considered for our funding solutions. The stage of a case, however, will usually be a factor in determining the cash advance amount and/or the structure of a loan.
How can I use the funds I receive from Delancey Street?
Generally, attorneys and law firms that are approved for Delancey Street’s financial support solutions can use the funds they receive however they see fit to run their practice. Commonly, however, our clients use the funds they receive from us to:
- Cover payroll and/or tax payments
- Pay for the firm’s general operating expenses
- Hire expert witnesses
- Invest in business development efforts and/or legal marketing efforts
- Cover the costs of litigation support.
Is this type of funding legal and ethical?
Absolutely. We have been strictly adhering to all applicable laws since opening in 2003 and allow attorneys to exercise their independent professional judgment in all their cases. If you have questions about the ethics of law firm financing, many jurisdictions have ethics hotlines that can address your concerns or have issued advisory opinions on the issue.
Why should I choose Delancey Street instead of a bank?
Because Delancey Street has the experience, knowledge and resources necessary to properly evaluate your case portfolio and provide you with the financing you need so you can focus on practicing law.
While banks can be good options for certain types of funding, they aren’t willing to assume a lot of risk, and they don’t have the legal experience that is critical to properly evaluating a firm’s caseload. This means that, even if banks may be willing to provide funding to contingency-based law firms, the terms of this funding will likely not be as favorable to law firms and lawyers as the funding solutions from Delancey Street would be.