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- What are the advantages of a Non-Recourse Advance?
- What are the advantages of a Partial or a Full Recourse Advance?
- Can I get a bank loan?
- How much will AFS advance?
- What documents are required?
- Why should I choose AFS?
- Will AFS be involved in my firm's cases?
- How do I apply?
What are the advantages of a Non-Recourse Advance?
A non-recourse advance frees up your Law Firm's capital that would otherwise be tied up in case costs. In addition, by using non recourse advances, you protect your personal assets because you do not pledge those to us. Your Firm can use our funds for any purpose whatsoever: Case Development Costs such as Expert Witnesses; Advertising; or any Other Expenses to help expand your Law Firm's practice.
In addition, repayment of these advances is entirely contingent up the successful resolution of the cases securing AFS' advance. In this way, AFS is able to help you even out your firm's precious cash flows. Finally, many states allow Law Firms to pass on to clients a portion of the fees paid by the Law Firm related to the advance, significantly reducing the cost to the law firm of such advances.
::Back To Top::What are the advantages of a Partial or a Full Recourse Advance?
Like Non Recourse Advances, AFS provides significantly greater funding to your firm because we evaluate your cases and advance funds against expected contingency fees. Recourse and Partial Recourse financings are generally structured when a law firm has a need for $1mm or more in financing, and is able to make monthly interest payments on its borrowings. In these situations, because AFS takes a pledge of collateral and in addition receives personal guarantees from the law firm's lawyers, the risk to AFS of such advances is lower and we are therefore able to offer lower financing rates.
::Back To Top::Can I get a bank loan?
If your Law Firm qualifies for a bank loan, AFS encourages you to consider the loan carefully since AFS' rates are typically higher than those of a bank. However, most banks do not have the expertise to lend against cases because they have no idea how to value them. In addition, they will virtually always require personal guarantees and a pledge of all the assets of the Law Firm.
Whether we structure Recourse or a Non Recourse Advance for you, AFS' primary value added is that we evaluate and advance funds against the Law Firm's primary assets: the contingency fees and costs due from pending cases-leading to significantly greater funding for your law firm. In addition, in the case of an AFS non recourse advance, there are no monthly principal payments, and the advance is only repaid if there is a recovery on the cases pledged to us.
::Back To Top::How much will AFS advance?
AFS can advance anywhere from $50,000 to $20,000,000, depending on the underlying value of the cases submitted by your firm; and in the case of Recourse Financing, depending also upon the creditworthiness of the principals of your law firm.
::Back To Top::What documents are required?
AFS looks at cases the same way you do: we evaluate liability, damages and the defendants' ability to pay. In addition, AFS will require copies of your Law Firm's retainer and/or referral agreements. In the case of Recourse Advances, AFS will also require detailed financial statements from both the law firm and the partners of that firm guaranteeing the Advance.
::Back To Top::Why should I choose AFS?
AFS can provide you with significantly greater funding than traditional lenders. We offer excellent and timely service, and can provide you with many references from satisfied law firms around the country. Let AFS solve your financing problems so that you can do what you do best: bring in cases and see them through to their most favorable conclusion. In the case of Non Recourse Financings, AFS will provide your Law Firm with working capital without tying up all of your cases, and without putting your partner's personal assets at risk.
::Back To Top::Will AFS be involved in my firm's cases?
No. AFS has no involvement in the management and decisions regarding your Law Firm's cases.
::Back To Top::How do I apply?
Simply fill out the Inquiry Form and an AFS attorney funding specialist shall contact your Law Firm or contact AFS toll free at 1.800.661.1864.
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