Ideal Business Consultants

Attorney loans are essential whenever lawyers or firms are having difficulties with their finances. These loans are offered by various financing institutions and could provide lawyers with revolving credit lines that could amount up to millions of dollars. These loans could help firms and lawyers alike continue with their operations or litigations, which could benefit them and their clients. These are hardly provided by banks but could easily be obtained from financing institutions as long as their requirements are met.

Requirements for Attorney Loans

Before you avail of an attorney loan, you need to meet several requirements of financing companies. They are most likely to require you to prepare some documents before they could approve your application for an attorney loan. Here are some of the requirements that may be asked from you:

• Federal Tax Identification Number
• Information on firm or professional practice. Some of these information would include one or more of the following:
  • Number of partners
  • Number of associates
  • Number of paralegals
  • Total fee income of the firm (usually for three years before date of loan application)
  • Case development expenses
• Proof of authority of person negotiating the loan
• Length of practice
• Existing litigations/cases to be used as collateral

Attorney Loan Collateral

In order to avail of the credit line that you need, financing institutions would often require the cases that you are handling to be your loan collateral. There is a broad range of cases that you can use as collateral. These cases often involve the following fields:

• Civil rights
• Fraud
• Negligence
• Breach of contract
• Class suits
• Medical malpractice
• Discrimination in workplace
• Legal  malpractice
• Personal injury (vehicle, pedestrian, etc.)
• Nursing home malpractice
• Product liability
• Wrongful death

There are still other types of cases that you can use as collateral for an attorney loan. The most important thing is that you could show the bank that your case is bound to win, even if it is still in the court of origin or in the appellate level. There are various types of loans that you can actually avail of.

Types of Attorney Loans

• Firm loans

This is the type of loan that firms apply for in order to acquire the needed funds that the firm needs, most especially to pursue litigation of the cases they handle. There are instances when firms could no longer take on new clients or cases, and have to refer them away, just because the firm is already short of funds. Hence, firm loans would be very ideal so that the firm would have the necessary funds for their day to day operations and for litigation expenses.

• Funding Post Settlement Agreements

Financing institutions also provide loans based on post-settlement agreements. If you have reached an agreement from the other party to settle but payment has not been received yet, then you could go for this type of loan. You just need to present a documentation that states the attorney’s fees owed to you. You also need to present to the financial institution, a copy of the general release executed between the defendant and the plaintiff or between the insurance carrier of the defendant and the plaintiff.

So in order to smoothly carry out any litigation and to free yourself from financial worries, attorney loans would be a good option.

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