Why Work with Balanced Bridge Funding?
At Balanced Bridge Funding, we are professional, courteous, fast, and discreet. Our clients like to keep their financing activities private, and we respect their wishes. When you work with us, you work with a group of true professionals with many years of legal funding industry experience.
When you work with Balanced Bridge Funding you are working with a true funding company. We are not a brokerage for someone else’s business. When you work with us, you work with the source, not a “middle man.” Going direct to a funding source can help keep costs down, maintain privacy, and ensure you are working with the people who actually make the decisions about your funding.
What is Post Settlement Funding?
Post settlement funding is a financial vehicle law firms and attorneys can use to receive advances on upcoming contingency fee payments from a settlement award. These funds are used to finance rapid expansion, growth, take on new clients, and finance operations.
Who is Post Settlement Funding For?
Post settlement funding is utilized by law firms of all sizes. Large law firms use post settlement funding to leverage their continued growth. Smaller law firms use post settlement funding to finance operations, take on new cases, hire better experts, and to help them be competitive.
Post Settlement Funding Strategy for Growth
Business owners who think small, tend to stay small. Large businesses never hesitate to use “other people’s money” to fund their future growth. They borrow, sell debt, sell shares, and take positions on commodity exchanges to hedge against price fluctuations. They buy new companies just to leverage their assets for the growth of their existing businesses. Law firms should be no different.
Major lawsuits are expensive and can last years or even decades. During that time, the law firm does not receive any capital from the lawsuit. Even after the case is settled, it can take years before the money is actually paid out.
Post settlement funding is a great way to leverage the work you’ve already done to fund future growth instead of putting growth on hold while you wait to be paid for efforts.
How Does Post Settlement Funding Work?
Once you (the law firm) have reached a settlement or judgement on behalf of your client, the money you are owed is considered an asset. You own the rights to the money you are owed. Because it is an asset, all or part of it can be sold. We (Balanced Bridge Funding) purchase a portion of the amount owed to you (at a discount). You get money now, and we own the asset (a portion of the settlement funds you sold to us). You go on about running your law firm, and we wait for the settlement funds to be paid to us directly by lead counsel, or whomever is designated to distribute the funds on behalf of the settlement.
How Does Balanced Bridge Funding Get Paid?
When the settlement pays out, Balanced Bridge Funding is repaid what it is owed directly from the case administrator, lead counsel, or from the escrow account. You are paid any remainder owed to you. Remember, we purchased this asset from you. It is ours, and it is our responsibility to collect what is owed to us from the settlement or award.
Is Post Settlement Funding a Loan?
Post Settlement Funding is NOT a Loan.
Although post settlement funding is often referred to as a loan for lawyers, it is not. We are purchasing an asset from you at a discount rate. The terms might seem semantical, but they matter.
Some states have passed bills just to specify that legal funding does not in any way meet the criteria of a loan and cannot be called a loan.
Example: In 2020, Utah passed HB 312 that specifically states post settlement funding does not meet the definition of a loan or credit. (source)
Unlike a loan, post settlement funding does not have monthly or interim payments to a lender. When your case finally pays out, your obligor pays Balanced Bridge Funding directly.
What Type of Settlements Does Balanced Bridge Funding Finance?
We fund all types of settlements where there is a delay between time of settlement and actual payment. Here are just a few (not all) types of settlements we will fund:
- Class Actions
- Veterans Disability Claims
- Sexual Assault
- Infant Injuries
- Product Liability
- Personal Injury
- Truck Accidents
- Mass Torts
- Multi-District Litigation
- Employment Discrimination
- Wrongful Death
- Slip & Fall
- Medical Malpractice
- And More!
Chances are, if you are going to receive a settlement or award, you can receive post settlement funding from Balanced Bridge Funding.
Is Post Settlement Funding Regulated?
As of 2022, there is no federal regulation for third party litigation funding. Some states have begun considering regulation, and it is reasonable to expect regulation in the future and for those regulations to differ state to state.
The legal industry is policing themselves (as they tend to do) regarding legal funding. The American Bar Association (in 2020) issued a report of “best practices” for third party litigation funding: Link: https://www.americanbar.org/content/dam/aba/directories/policy/annual-2020/111a-annual-2020.pdf
The Legal Funding industry has made a great deal of progress policing itself. There are at least two associations now in the Legal Funding Industry. The Alliance for Responsible Consumer Legal Funding (ARC), and the American Legal Finance Association (ALFA).
Does Balanced Bridge Funding Belong to an Association?
Yes, Balanced Bridge is a member of ARC – The Alliance for Responsible Consumer Legal Funding.
Infographic Explaining the Underwriting Process for Attorney Post Settlement Advances: