Frequently Asked Questions

Bridgehead can process a normal underwriting and provide financing in a matter of days. Because our underwriting hinges upon an assessment of the firm’s case portfolio, however, our timeframe is dependent upon receiving a complete application from the law firm. The sooner we receive materials, the sooner we can finalize the underwriting process. There are, of course, unique or more complicated situations that require additional documentation, which could extend the timeframe.  But we pride ourselves on moving quickly. 

The short answer is yes and no. While we do not offer a traditional line of credit (“LOC”), our products straddle the line and mimic a LOC in many aspects.  Like a LOC, your payments are interest only, until such time that a principal paydown is required.  Bridgehead can approve your firm for funding up to a certain amount.  But we typically encourage firms only to take what they need, so as to avoid paying interest on funds they do not plan to use immediately.  Rather, you can come back for additional funding when the need arises.  Because your firm has already undergone the initial underwriting review, those secondary fundings are far more streamlined (assuming the total amount still remains within the initial approval threshold).  While not an “automatic draw,” the process is fairly quick and can be completed within days. 

We do require a personal guaranty but we take no interest in any real property nor do we place any liens on your real property. 

This is a hot topic for firms interested in litigation funding. There have been a number of recent court opinions holding that attorneys must disclose litigation financing arrangements to the courts and opposing counsel.  Congress has even proposed legislation that would require disclosure of litigation financing arrangements.  While each jurisdiction differs, most disclosure requirements pertain to non-recourse litigation financing, whereby the funding company purchases an interest in the firm’s attorneys’ fees.  Bridgehead does not offer non-recourse financing.  Our financing is more in line with bank lending with a security interest in a firm’s fee receivables. 

Bridgehead keeps all case information strictly confidential and uses imbedded technology to ensure that third parties cannot access this information. We do not require transmission of any information that falls under the attorney-client privilege.  The terms of our funding ensure confidentiality. 

Absolutely not. Bridgehead operates purely as a lender.  Our loans are secured by an interest in your firm’s receivables.  But we have no involvement in any of the underlying cases.  While we ask for periodic updates, all of the case management and litigation decisions are strictly the priority of the law firms. 

• Our rates are competitive, but the actual rate depends on a number of factors, including, but not limited to, your firm's financial strength and the specific terms of the line. We aim to be fully transparent about all costs and have that discussion with your firm prior to sending any formal agreements for review.
• Our lines of credit are revolving, meaning you only pay interest on the amount you draw. We typically require monthly interest-only payments, with the principal due upon maturity (often 12-24 months), or as fees are collected. You're free to repay and re-draw funds as needed within your approved limit.

• Absolutely, flexibility is a cornerstone of our lines of credit. They're designed to help you manage your firm's unique cash flow. You can draw funds whenever your firm needs them, whether for operational expenses, case disbursements, payroll, marketing, or even partner distributions, as long as it's within the agreed-upon terms and legal uses. You can draw what you need, repay when cash flow allows, and then re-access those funds, making it an ideal tool to smooth out the unpredictable cash flow inherent in legal practices.

• For lines of credit, we typically look for a lien on the firm's assets, which can include accounts receivable and other business assets. This allows us to secure the facility without tying up your partners' personal homes or other significant personal assets.
• For most lines of credit under $1 million, particularly for younger firms or those seeking to maximize their funding capacity, a  personal guarantee from the shareholders is often required. This provides an additional layer of security for the lender.

• This is our core expertise. We specialize in law firm finance and deeply understand the unique challenges of contingency fee models, long litigation cycles, and the importance of valuing unbilled work and case portfolios. Our underwriting process is specifically tailored to assess these unique assets and cash flow patterns. We employ our own team of legal and financial analysts who assess the strength and projected value of your case inventory, helping us structure a line of credit that truly reflects your firm's potential.

• Our process is streamlined for efficiency. Once we receive a complete application and all required documentation, you can typically expect an initial decision within 2-5 business days. Once approved and documents are signed, funds can be disbursed to your account within 24. The process usually involves an initial application, submission of financial statements (balance sheet, P&L, cash flow), a schedule of your firm's cases/receivables, and a brief interview to understand your firm's operations and funding needs. We aim to make it as straightforward as possible.

• Generally, our lines of credit are very flexible for general working capital purposes. We typically do not have strict prohibitions on usage, beyond what is legally permissible for a business. The funds are intended to support the firm's operations and growth.

• While specific criteria vary, we generally look for firms with an existing portfolio of filed cases, a solid credit history for the firm and its principals, and a profitable track record. We also consider the firm's practice area stability and overall financial health.

• We are dedicated specialists in law firm finance, with extensive experience in the sector. Our team comprises professionals who deeply understand the legal sector's financial nuances. Absolutely, we are happy to provide references from other law firms we've partnered with, allowing you to hear directly about their experience with our services and support. We can provide these once we've had a preliminary discussion and determined a potential fit.

• Beyond the capital, we see ourselves as a strategic partner. As former litigators, we offer invaluable guidance on building a practice, from client acquisition strategies to efficient case management. We act as a sounding board for their nascent business models.
• Further, we can connect start-up firms with other legal professionals, service providers, and potential referral sources within our network, helping them establish a foothold in the market.

• We have a sophisticated proprietary model for valuing contingency fee cases and work-in-progress. Our in-house legal and financial experts conduct thorough due diligence on your active case portfolio. We look at factors such as the stage of litigation, historical success rates, the jurisdiction, the quality of your firm's legal talent, and the expected settlement ranges. This allows us to assign a conservative, yet effective, advance rate against your qualified inventory.