NEW YORK, April 23, 2013 /PRNewswire/ -- Legal-Bay LLC, The Lawsuit Settlement Funding Company, announced today that they were given an increase in their credit facility with one of their major foreign institutional investors to accommodate their growing Attorney Loans Division. The increase was spurred by the substantial amount of business that Legal-Bay is providing to various CPA's and Law Firms in Texas, Louisiana, Mississippi, Alabama, and Florida that are directly in need of capital from the B.P. Oil Spill in order to deal with the large influx of claims to be filed, and adequate staff to process them.
"Our B.P. Oil Claim Funding Division secured $10MM for B.P. Economic Claim's for Plaintiffs needing working capital for their businesses. But what we didn't shore up until now, was the needed funding to our CPA and Lawyers who are also in need of B.P. Capital Funding as well," said Chris Janish, Legal-Bay's CEO. "We have now secured enough capital for both sides of the B.P. funding market as well as traditional law firms nationwide from New Jersey to California who need working capital, whether associated with B.P. or not."
Legal-Bay's attorney loans program is a non-traditional banking facility where as credit score is not a major factor, but the quality of the firm's case load is. Legal-Bay's evaluation is based more on the assets available through eventually settlement of the firm's lawsuit cases, as opposed to hard assets that a bank would look to collateralize. Even better for the law firm, Legal-Bay allows the attorney to pay back the funds when most convenient for the firm without further impeding cash flow further with large monthly servicing payments.
The program has been a success for Legal-Bay as they have increased their attorney loans by 500% in the first quarter of 2013 alone; mainly since they are one of the few true players providing capital up to $1MM for smaller firms at flexible terms. The typical underwriting process takes 48 hours for a pre-approval once all needed documents are provided, and funding typical takes 5-7 business days thereafter.