VFS Legal
Case Studies

Costs Advance Facility

CAF provides the law firm with cash flow to maximise the profitability of a case at the time of issuing the bill. This enables the law firm not to be forced to accept a reduced settlement, driven by the constraints of the law firm’s own finance facilities rather than the merits of the case.

Gross Bill Value £120,000.00
Expected Correct Settlement £100,000.00
Law Firm Requires Immediate Cash Flow £50,000.00
 – VFS can advance up to 80% of WIP / Dibs
Use VFS CAF Immediate Funding:
Law Firm Receives Immediate Funding from VFS £50,000.00
Defendant Offers Low Settlement £80,000.00
– VFS funding enables law firm to reject low offer
– It takes further 60 days to settle + 30 days for payment
BUT settle at full value of Expected Correct Settlement £100,000.00
Law firm also entitled to statutory interest
Increase in Settlement £20,000.00
Statutory Interest                                                                                                    ((£100,000 x 0.08) / 12 months x 2 months) £1,333.00
Cost of VFS Funding                                                                                                         (3 months Interest + 1% fee) £2,375.00
Increase in Law Firm Profits £18,958.00
– Cash Flow to meet law firm needs
– No breach of any overdraft facility
– Increase in Profitability
– Simple, Innovative, Proven

VFS Legal Funding Products
VFS Legal offers a range of innovative funding options for Law Firms to release cash flow tied up in Costs and Disbursements. Find out more about our products here:

VFS Legal Funding