The Trial Lawyer Fall 2017 - Page 28

FROMTHEEXPERTS By Kelly Anthony, Esq. | Deputy General Counsel & Elizabeth DiNardo, Esq. | Associate Counsel UNDERSTANDING LAW FIRM FINANCING: Separating Fact From Fiction Law firm financing has grown substantially in the past 20 years. As with all burgeoning industries, it has suffered criticism as well as received praise. Critics often cite pricing and a lack of uniform industry regulations in opposition, while supporters argue law firm financing is advantageous to address the increasing costs of litigation and the day-to-day management of a plaintiffs’ practice. So who is right? Determining if third-party litigation funding is good or bad for your law firm involves separating fact from fiction. Therefore, listed below are some of the most prevalent myths and why you should stop believing them: 26 x The Trial Lawyer Myth #1: All Law Firm Financing Companies Are The Same. Companies that provide law firm financing offer varying products and services. Some extend traditional bank loans or lines of credit, others fund firms based upon fees from