SpectraLegal are launching 2 new products which provide solutions to the common challenges faced by all litigation practices.
We all know that cash flow is king, but when it comes to litigation we also know that the cash doesn’t flow until the end of the case! This is just one of the common problems we all know exists for litigation practices and we wanted to create solutions that directly address as many problems that you face as possible. We therefore took to the streets and spent much of the early part of 2019 consulting with many of you from mixed and specialised litigation firms trying to understand the common challenges that you face – from a finance perspective that is!
The pressure point that cash not flowing until case conclusion creates is further magnified by the constant outgoings that case development through disbursement expenditure creates. You then add to this an inability to obtain significant financial support in the form of capital injections which would enable the firm to grow and you have a pretty tough environment for any firm to survive, let alone thrive, in. Finally, as if that wasn’t enough, you also highlighted the need for off balance sheet solutions which come without the need to have clients enter regulated loans. Let’s be frank, that’s quite a wish list!!
This long list of requirements is not something that can easily be addressed and we quickly realised that one product could not solve all these issues. We have therefore split our disbursement offering into an Equity Release product (ER+), focusing on historic disbursement expenditure and completed cases, and our Disbursement Funding product (DF+) focusing on all the future disbursement expenditure your practice may have.
The first of these is our Equity Release product or ER+. This product enables the firm to release the investments it has made in its current caseload thereby providing a capital injection back into the law firm. The product itself is structured as a facility to the law firm and the capital available can then be used for a number of business reasons such as releasing partners from the burden of personal guarantees and enabling further investment into the growth of the practice.
The product is off balance sheet, simple to administer with repayments linked to case conclusions and is available for facility sizes of £1m upwards.
To complement the ER+ offering and to focus on the future disbursement expenditure of the law firm we are also launching our imaginatively titled Disbursement Funding product or DF+. Think Ronseal and you’ll understand our product naming philosophy!
DF+ is a revolutionary new product which provides all the disbursement expenditure that you will have and it is on a no win, no fee basis. Having funds always available means that you will always be able to instruct your expert of choice and remove any reliance on the expensive deferred terms provided by medical agencies, amongst others.
Although compelling in their own right, the combination of these two solutions means you can now future proof your business and give it a footing from which to grow and take advantage of the constantly changing legal landscape. These solutions are off balance sheet, do not require the client to take out loans and have repayment terms tied to case conclusion. The question isn’t why would you want to try these but rather why wouldn’t you want to give them a go!
We are a specialist provider of finance and we don’t do anything else. We pride ourselves on understanding the challenge that law firms face and creating solutions which meet all your needs. And at the end of the day if you want the best steak in town you don’t go to a fish restaurant.