A new service offering lawyers an upfront credit facility on fees has been launched in London. cowardlion
Legal Cost Finance is a credit facility which enables clients to secure pre-approved funds to cover the cost of legal services. Launched by legal services entrepreneur Dr Yuri Rapoport, it allows legal bills to be paid in instalments by the client over an agreed period. “If any unexpected costs arise, the credit facility can be adjusted accordingly. In effect, Legal Cost Finance is analogous to using a credit facility to buy a new car, and later having the option of extending the facility to pay for upgrading to a newer model,” said Dr Yuri Rapoport.
Aged debt solution
The solution would also assist aged debt in firms, Dr Rapoport said. He added that the key advantage was "instead of paying legal costs outright from their pockets, a third-party creditor pays the lawyer’s bills on the client’s behalf, enabling the client to repay the creditor via convenient instalments over an extended period.In addition, by offering clients a discount of 5-10 per cent on their legal bills, lawyers can offset the cost of the financing facility (ie interest and/or arrangement fee). Clients would "always be better off using a convenient payment plan to settle their legal bills by instalments over time, instead of paying large sums outright from their pockets," Dr Rapoport said.