Just Costs Solicitors and Novitas Loans have launched a new funding scheme for industrial disease, personal injury and clinical negligence law firms to realise work in progress (WIP) and improve cash flow.
The scheme offers unlimited funding and is available to law firms throughout the country.
Said Mark Hartigan, client services director at Just Costs Solicitors:
“Law firms can have considerable sums of money tied up in WIP, significantly constraining the money available for growth. Our solution is to advance the law firm a fixed sum, per case, that has reached a certain stage in its development. The size of the loan facility and the amount per case that can be drawn down is agreed per firm and interest is only charged on money drawn-down.”
While the money itself is advanced by Novitas, Just Costs Solicitors conducts a WIP audit on the firms’ files which acts as an approval process. When the case settles, the money advanced on the case is repaid via the cost consultant, Just Costs.
Jason Reeve, managing director at Novitas Loans said:
“This is a very flexible source of funding with no personal guarantees required. We believe it will be of widespread appeal.”
Last year, Just Costs Solicitors and Novitas launched a costs advance scheme, equivalent to invoice discounting, which is now lending over £1 million every month to law firms.
The costs advance scheme helps firms’ bridge the gap between applying for and receiving their case fees.