It is not ideal to front-load a plaintiff with funding, as most law firms tend to do by manipulating funding companies. Law firms attract high-liability clients by offering them funding of tens of thousands of dollars on the same day or within days of the accident date. Funding companies, lacking strategy and using Other People’s Money (OPM), capitulate. Villagómez Capital does not! We educate; we simply show the client the numbers. Our client managers have detailed scripts that explain the numbers and the realities of a strong case.

The result of frontloading is that plaintiffs receive less funding and become upset when they realize they received so little in principal compared to the interest they have to pay.

Funding can be used for anything the plaintiff wants, as long as the case’s value justifies the financing. Consistent monthly funding for bare necessities is ideal, allowing for occasional big-ticket items such as emergencies, holidays, surgeries, etc.

If the same plaintiff mentioned in the previous example had an accident on this day five years ago, they would have been funded $2,500.00 every month and $5,000.00 every December. That client would have 59 contracts. The following table would display all the fundamental data. These contracts include a total of 20% on and off-contract fees for our brokers and joint ventures.

Remember, the $3,650,000.00 is a conservative award, providing us with a buffer since we target firms that receive eight-figure verdicts. A case like the previous example could result in a verdict of $15,000,000.00 or more, which would likely be appealed by the defendant and settled in the high seven-figures to low eight-figures.

Our goal is to own 25% of that potential award, resulting in a Payoff amount, including compounded interest, of $608,333.33. At $678,928.19, we are comfortable with the additional funding because of the variables we have factored into our proprietary underwriting formulas built into our CRM.