Loans are secured by the Borrowers future case settlements. We are a investment broker, finding you the best match for your investments.
Interest is paid monthly direct deposit into your account by a 3rd party loan servicing company.
Borrowers are guaranteed a term of up to 36 months. Investors will collect interest until the loan is paid in full.
Investments are $10,000 or more into a loan to a personal injury attorney law practice secured by future account receivables associated with specific existing cases and future cases of the law firm.
The inventory of cases will be underwritten and values for the portfolio estimated. Loans will be made up to a maximum of 35% of the future estimated account receivables.
The loan will be further secured by future cases acquired by the borrowing Law firm as well. Borrowing law firm will be required to pay a minimum monthly payment plus an escalating percentage of contingent fees received from personal injury cases.
A balloon note applies at the expiration of the 36th month following the funding of the loan.
Investors will receive a 10% to 15% annual return depending on the amount invested.
K.J. Law Firm Funding, LLC acts as a loan broker between the Investor and the borrowing attorney firm. Therefore, investor will be paired with one or more borrowing attorney firms based upon the amount invested and the amounts being sought by the borrowing attorney firms.
Solo personal injury attorneys and small law firms often borrow capital to balance out ebbs and flows in income. Additionally, borrowing to invest in pending litigation is common. For instance, expert witnesses, medical consultations, cost of discovery such as deposition costs or sight evaluations are expensive. Attorneys commonly utilize loans to fund these types of expenses within very successful and solvent law practices.
Each borrowing law firm will also have a written succession plan in place to ensure access to the proceeds of the future account receivables in the unlikely event of death or disability of a sole practitioner or principal attorney in a small firm.
In the unlikely event of bankruptcy of a sole practitioner or law firm the loan is still protected by the U.C.C. 9 filing which secures a portion of the existing and future caseload as collateral for this loan.
Payments will be made directly through an independent loan processing company with the cost of the loan processing fee being paid by the Borrower. The independent loan processing company will supply monthly statements to the Investors and Borrowers re-calculating principal following each payment.
Fees for K.J. Law Firm Funding's loan broker services will be paid directly by the borrowing firm and not by the Investor. K.J. Law Firm Funding will monitor the collateral periodically and will ensure that a U.C.C. 9 filing securing the future account receivables is filed.