Frequently Asked Questions

Bridgehead can process a normal underwriting and provide financing in a matter of days. Because our underwriting hinges upon an assessment of the firm’s case portfolio, however, our timeframe is dependent upon receiving a complete application from the law firm. The sooner we receive materials, the sooner we can finalize the underwriting process. There are, of course, unique or more complicated situations that require additional documentation, which could extend the timeframe.  But we pride ourselves on moving quickly. 

The short answer is yes and no. While we do not offer a traditional line of credit (“LOC”), our products straddle the line and mimic a LOC in many aspects.  Like a LOC, your payments are interest only, until such time that a principal paydown is required.  Bridgehead can approve your firm for funding up to a certain amount.  But we typically encourage firms only to take what they need, so as to avoid paying interest on funds they do not plan to use immediately.  Rather, you can come back for additional funding when the need arises.  Because your firm has already undergone the initial underwriting review, those secondary fundings are far more streamlined (assuming the total amount still remains within the initial approval threshold).  While not an “automatic draw,” the process is fairly quick and can be completed within days. 

We do require a personal guaranty but we take no interest in any real property nor do we place any liens on your real property. 

This is a hot topic for firms interested in litigation funding. There have been a number of recent court opinions holding that attorneys must disclose litigation financing arrangements to the courts and opposing counsel.  Congress has even proposed legislation that would require disclosure of litigation financing arrangements.  While each jurisdiction differs, most disclosure requirements pertain to non-recourse litigation financing, whereby the funding company purchases an interest in the firm’s attorneys’ fees.  Bridgehead does not offer non-recourse financing.  Our financing is more in line with bank lending with a security interest in a firm’s fee receivables. 

Bridgehead keeps all case information strictly confidential and uses imbedded technology to ensure that third parties cannot access this information. We do not require transmission of any information that falls under the attorney-client privilege.  The terms of our funding ensure confidentiality. 

Absolutely not. Bridgehead operates purely as a lender.  Our loans are secured by an interest in your firm’s receivables.  But we have no involvement in any of the underlying cases.  While we ask for periodic updates, all of the case management and litigation decisions are strictly the priority of the law firms.