Litigation funding for law firms: how terms are set
Criterica Capital does not set law firm capital terms. Independent capital providers decide whether to offer working capital, case-cost funding, settlement bridges, portfolio lending, growth capital or mass tort facilities, and they set the rate, size and term in their own agreements.
What moves the rate. The quality and stage of the docket, the venues, the firm’s collection history, the facility size and term, and whether the facility is recourse to the firm or to specific cases. A docket with resolved, collectible matters near the end of their timeline prices lower than one of early-stage claims.
What is not in the rate. No equity, no board seat, no control of case decisions, no contact with the firm’s clients.
Reading a term sheet. Look for the advance rate against expected fees, the draw schedule, the repayment trigger (fee receipt, not calendar), covenants about reporting, and what happens if a case takes longer than expected.
Common questions
How fast is a decision?
Timing depends on the case, on how quickly counsel provides documents and on the capital provider. Criterica Capital tells you what it needs and what comes next.
Can a firm borrow against a single large case?
Yes, as case-cost funding or a settlement bridge.
Is the pricing negotiable?
Capital providers set terms from the docket, so a stronger docket tends to attract better terms.
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