How does law firm funding work?
Law firm funding is capital advanced to a contingency-fee practice against the fees its cases are expected to produce. The lender reads the firm’s docket, estimates when and how much fee income will arrive, and sizes a facility against that. Repayment comes from fees as cases resolve. The firm keeps its equity and its cases.
What the lender looks at. The case list: stage, venue, case type, expected resolution, co-counsel splits, and the firm’s own history of fees collected. A lender that can read outcomes from the court record prices a docket more accurately than one that relies on a personal financial statement.
The forms it takes. A working-capital line for payroll and overhead while fees are pending. Case-cost funding for experts, filing and discovery, usually non-recourse to the firm. A settlement bridge when a resolution is signed but not yet paid. A portfolio line for larger books. Growth capital for a firm adding a practice area or an office.
What it costs. Rates and terms are set by the independent capital provider and written in its agreement. They depend on the docket, the facility type, the size and the term.
How to start. Send the docket. Criterica Capital evaluates it from the record and prepares a request for independent capital providers, who decide whether to offer terms. A firm can also ask for a docket read first, with no obligation to proceed.
Common questions
Does the firm give up equity?
No.
Is the client involved?
No; the facility is between the lender and the firm.
What if a case loses?
Case-cost funding is non-recourse to the firm; lines are repaid from fees across the docket, not from any single case.
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