Thank you for asking. In addition to the testimonials from national leading law firms on this website, you’ll also find us at NLVA.law. The National Legal Vendor Association has vetted us as a trusted and compliant resource serving the plaintiff’s bar since 2003. ALFC’s founder is also a frequent speaker at Mass Torts Made Perfect in Las Vegas, the National Trial Lawyers Annual Convention in Miami, The Business of Law seminar in Phoenix, and other venues.

Our standard and larger loan programs (debt) normally do not include personal guarantees by the firm or its partners. In smaller loan amounts under $10M, or for firms with certain risk attributes, personal guarantees may be required. In any instance, personal, corporate, or “bad boy” guarantees will be disclosed in the term sheets ALFC arranges for you. Equity-like transactions or co-counsel financing arrangements typically have no personal guarantees.

That’s called a “waterfall.” Your repayment percentage of the future legal fees earned on any case that settles is a flexible amount based on the strength of your collateral and the financial condition of your firm. The waterfall repayment range is normally 35% to 80%, with most firms landing around 60%. The percentage is finalized after all due diligence is complete.

Your funding amount, or Borrowing Base, is an ongoing evaluation throughout your debt or equity product lifecycle. It’s determined primarily by (i) your total estimated future legal fees and collateral, (ii) the maturity and risk stage of that collateral, (iii) your annual operating costs, and (iv) your debt and other material data points. Typically, your Borrowing Base will be $1 for every $3 or more of your estimated future collateral, unless a portion of your collateral is already settled. Borrowing Bases are driven by these factors, not by your firm’s balance sheet, and are finalized after all due diligence is complete.

Loans driven by our Exchange Network of family offices and hedge funds normally have no mandated monthly interest payments. You may defer interest (called PIK) until settlements occur, at which point a waterfall repayment between you and the lender applies. These loans typically start at $5M and above. Bank loans normally require monthly interest payments; however, we can structure a bank loan with an interest reserve carved out of your total loan facility, so your firm can make timely interest payments despite unpredictable settlement timelines.

Currently, ALFC has funding programs as low as $1M and in excess of $100M per firm. To see the practice areas and case types we fund, visit our Cases We Fund page.

Funding timelines depend on the size and type of transaction, the data you have available, your firm’s responsiveness during underwriting, and any material hurdles. Generally, loans under $10M are completed in 45 to 60 days, and larger loans in 60 to 90 days.

Most firms can’t match, on their own, what our model and platform deliver. We match your firm’s attributes to the right capital, terms, rates, and conditions that support your scaling and a long-term relationship. Our knowledge, the years of data we build into our financial products and tools, our industry relationships, and our seasoned legal and executive teams are difficult to replicate. That’s what our clients engage us for.

You can apply through the online form on this website, or use the “Get Started” links located throughout the site. You’re always welcome to call 1-928-CAPITAL.