Many attorneys structure their fees so they can have a predictable amount of cash flow. There are also tax advantages to structuring their fees which can help them avoid paying a huge bill to the IRS once fees are awarded. Many attorneys are known to have cash flow issues because of the inconsistency court cases can have as well as eventual payment of the legal fee which can be subject to delay for a variety of reasons.
There are those attorneys who like structured settlement companies and hope to build a long lasting relationship with them almost like a bank. With RD Legal Funding’s Attorney Post-Settlement Fee Acceleration product, once an attorney gets funded, they can move on to the next case without worrying about a relationship with the funding company. The product is designed specifically for attorneys who are interested in getting what they need to continue their operations. Structured settlement companies have an array of options to keep the attorney in a relationship, many of which the attorney may not want. That attorney’s next fee could be big enough so he won’t need funding after the fee pays out.
In general, attorneys use settlement funding and legal funding companies when they need to bridge a short term cash flow problem. They are also used when they plan on making a big investment in what may be a huge case. For that case, they will need money for expert witnesses, advertising for new cases, personal plans, or a mixture of all three. A structured settlement prolongs an attorney’s ability to process things faster, basically handcuffing him to the situation.
Attorney Fee Acceleration allows lawyers to cash in so they can make things happen now for themselves and their firm. The future can only be changed by what happens in the present. An attorney is only as good as his next case. Reputation, prestige, and ultimately income are tied to how an attorney performs on his next case.
For many lawyers, a structured settlement may not be what is needed to help them get the competitive edge on their colleagues or help them with their cash flow. Structured settlements are for attorneys who are thinking about the future. Attorney Fee Acceleration is for attorneys who are thinking in the present and looking to advance in the moment. That is something most attorneys have in common, which is being in the moment.
Written by Lulaine Compere.