The Reality of Running a Contingency-Based Law Firm
John’s firm had built a strong reputation for handling complex, high-stakes litigation. His track record of success spoke for itself. He had secured major settlements, taken on corporate giants, and built a legal team ready to fight for his clients.
But despite everything he had accomplished, he had a cash flow problem.
Like most contingency-based firms, revenue wasn’t steady. Some cases took months or even years to resolve, and during that time, expenses kept piling up.
- Court fees had to be covered upfront.
- Expert witnesses required payment before trial.
- Discovery and depositions were necessary to build airtight cases.
- Payroll and operational costs never stopped.
John knew he had strong cases with high settlement potential, but the financial reality was clear: the bigger the case, the greater the financial burden. And the longer it took to reach a resolution, the more strain it put on his firm’s resources.
He wasn’t alone.
Many plaintiff firms find themselves in the same situation. High-value cases, top-tier attorneys, and a reputation for winning, yet they are unable to scale because cash flow constraints hold them back.
Meanwhile, defense firms and large corporations, with their seemingly endless financial resources, can prolong proceedings, hoping to force an early settlement. This financial inequality often leads many plaintiff firms to settle early, not because it’s best for their clients, but because they lack the capital to continue the fight.
That’s where litigation funding steps in, offering a much-needed lifeline and a path to financial stability.
With strategic, non-recourse financing, firms can cover case expenses, maintain financial stability, and take on more cases without worrying about cash flow. Instead of being forced to wait, firms can move forward with confidence continuing to grow, hire, and invest in winning strategies.
What is Litigation Funding, & Why Do Law Firms Use It?
Litigation funding is a non-recourse financial solution designed specifically for plaintiff law firms. It provides immediate access to capital to cover essential case-related expenses, allowing firms to pursue justice without financial strain.
Unlike traditional business loans or lines of credit, litigation funding is case-contingent, meaning you only repay if the case is successful.
Why is Litigation Funding a Game-Changer for Plaintiff Firms?
✔ Preserves Cash Flow: No need to deplete firm reserves to cover case costs.
✔ Levels the Playing Field: Compete against well-funded corporate defendants with the confidence that your financial resources are on par.
✔ Prevents Premature Settlements: See cases through to their rightful conclusion.
✔ Expands Your Caseload: Take on more high-value cases without financial limitations.
Corporate defendants and insurance companies strategically prolong litigation, knowing plaintiff firms may not have the financial endurance to keep fighting. Litigation funding ensures firms have the resources to compete without settling early due to financial strain.
How Does Litigation Funding Work?
The litigation funding process is designed to be quick, transparent, and aligned with your firm’s financial strategy:
Step 1: Case Evaluation
We assess the potential value, complexity, and expected timeline of your cases.
Step 2: Tailored Funding Proposal
We customize a financing structure that aligns with your firm’s needs and expected case proceeds.
Step 3: Capital Disbursement
Funds are made available quickly to cover trial preparation, expert witnesses, and other litigation costs.
Step 4: Flexible Repayment
Repayment is only required if the case is successful, ensuring your firm is never burdened by debt during active litigation.
This client-focused, non-recourse structure ensures that plaintiff law firms can operate without the looming shadow of financial uncertainty, providing a sense of security and control.
What Can Litigation Funding Cover?
Many law firms turn down strong cases because of financial constraints. With litigation funding, firms can confidently take on more cases, knowing key expenses are covered.
Common Costs Covered by Litigation Funding:
- Court Fees: Ensure timely filings without delays.
- Expert Witnesses: Retain the best professionals to strengthen your case.
- Depositions & Discovery: Conduct thorough case preparation without financial limitations.
- Trial Preparation & Courtroom Costs: Cover filings, motions, and evidence presentation expenses.
- Operational Stability: Keep your firm running without cash flow disruptions.
Plaintiff firms shouldn’t have to choose between financial security and aggressive litigation strategies. Litigation funding makes it possible to do both.
A Smarter Financial Strategy for Growth
Litigation funding isn’t just about solving cash flow challenges. It’s a growth strategy for firms looking to scale, take on bigger cases, and expand their practice without risk. Firms that leverage smart financing solutions don’t just survive. They thrive.
John’s firm stopped worrying about cash flow and started focusing on winning cases. With litigation funding, he could expand his team, take on higher-value cases, and build a stronger future for his firm.
Is Litigation Funding Right for Your Firm?
✔ Are you waiting on settlements but need immediate capital?
✔ Are you managing high-value cases but facing cash flow challenges?
✔ Do you want to scale your practice without financial strain?
If the answer is yes, litigation funding could be the key to unlocking your firm’s full potential.
Secure the Funding Your Firm Needs Today
Bridgehead partners with firms like yours. Contact us today to explore a tailored funding solution that works for you.
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