Bank Rates Plus More Capital
Example Case Study
LAW FIRM
Law Firm X has a $1 million line with a bank and needs an additional $4 million that the bank refuses to provide.
CHALLENGE
Until now, Law Firm X would be required to pay off the low-cost bank rate on the $1 million bank line in order to obtain the $5 million—all of which would have been payable at higher-cost rates.
SOLUTION
The Hybrid Line allows Law Firm X to obtain the full $5 million: however, the rate on the first $1 million in financing will be comparable to the bank rate. Only the additional $4 million is payable at traditional litigation financing rates.
WHAT DOES THAT MEAN FOR YOUR FIRM?
A blended interest rate that is much lower than any other law firm lender can provide.
Benefits of the Hybrid Line™
How We Compare
We have designed our credit lines to be straightforward, without the complex rates and hidden fees of other lenders. Compare how our terms stack up against the competition:
Features | Counsel Financial | Other Lenders |
---|---|---|
Pre-Payment Penalty | None | 10 - 15% with some specialty lenders |
Ticking / Other Fees | None | Up to 7% per annum |
Rate | Comparable to your bank rate + customary rate on additional funding | Customary specialty lender rate |
Loan Term | 4 years | 1 year |
Annual Maintenance Fees | None | 0.5 - 2% |
Balloon Payment | None | Standard with most banks |
Draw Fees | None | Up to 2% with some specialty lenders |
Use of Proceeds | Any law firm related expense | Case expenses only with some specialty lenders |