You heard a litigation funder has been invited to your law firm to do a CLE presentation. Should you take the time from your already too busy schedule to attend? Definitely. Litigation funding can help you build your own business and position yourself well at your firm. Litigation funding does more than just help the “little guy” – it can also serve as an additional tool for you to enhance your knowledge of your clients’ businesses and develop new client relationships, as well as grow your practice.
Here are four ways that litigation funding can build your profile:
1. Keep clients happy
We all know litigation is a long and costly endeavor. Even if your firm offers contingent or alternative fees, clients with meritorious claims can still find it hard to keep up with their reduced fees and cost payments over the long haul. Moreover, the costs can put a great strain on their business operations. Litigation funding can offer these clients the funds they need to fill the budget gap to permit their business to weather the storm. Educating yourself now on how funding can work for your clients allows you to get ahead of the game. Don’t wait for the clients to fall behind on their payments, talk to your clients early about their financial needs. Helping a client secure litigation funding at the outset can help them avoid unnecessary financial strain. A happy client is more likely to maintain a strong working relationship, stay loyal to your firm, and generate positive feedback about your service.
2. Increase your firm’s profitability
When a client has a strong case, offering a contingent fee has the potential to bring far greater revenue to the firm than trying to collect on the hourlies. But your firm must be able to endure the full litigation marathon before receiving any money. This could take many years. Litigation funding permits your firm to offer full contingent fees to those valuable clients with solid cases, while receiving a steady and reliable cash flow from the funder, thereby allaying financial risk to your firm. What’s more, with a litigation funder, legal fees are paid on time. Funding ensures the claim can keep progressing without the need to cut corners or make sacrifices. When this happens everyone, including the partners, are happy.
3. Build a bigger client base
Many clients are reluctant to pursue meritorious claims because of the heavy price tag. If you familiarize yourself with a litigation funder you can trust, you will have ready-made options to offer those clients when you come across them. By having a relationship with a litigation funder you know and trust, you can significantly expand the range of clients to whom you market. You may even find the funder refers work back.
4. Broaden your legal skills
Getting to know a litigation funder offers potential opportunities to broaden your own legal skills. By having the opportunity to work on claims that are funded, you will gain exposure to a funder’s view of the litigation process, while also learning valuable commercial skills. At Bentham IMF, our investment managers and legal counsel are all seasoned litigators who not only bring their legal expertise to the table, but also the unique perspective they have acquired from reviewing and analyzing tens or even hundreds of legal budgets across a wide spectrum of practices and jurisdictions.
So, next time you hear about a firm-wide CLE or a panel discussion at a conference on litigation funding, remember it is not only an option for your clients who don’t have ‘deep pockets’, but also a powerful tool to help you build your own business profile.
To learn more about the benefits of how litigation funding can help you and your clients, please contact us.