Your firm has won the case and the bill of costs has been served. A VFS Costs Advance Funding (CAF) Facility can advance funds against the expected cost settlement direct to the firm’s account.

Releasing the cash tied up in your bill will give you a stronger cash flow as the advance is not repaid until the agreed costs settlement has been received.

This can give you the financial muscle to challenge the Points of Dispute and the time to negotiate to the correct settlement level without the need to reach a quick, inappropriate amount that undervalues your WIP because the cash is urgently required for the business. VFS bridges this cash flow gap.

How Does It Work?

Under a Master Agreement VFS will provide a CAF facility to match your expected requirements, flexing as your needs change and drawdowns are made.


When a bill has been served and you want to release funds against it you, or your costs draftsman, simply make a request to VFS. We will create a schedule that sets out the specific details for the particular case including the funding offer and, once executed, enables VFS to immediately release the funds directly to your account.

Each drawdown relates to a specific case; interest is paid monthly with the initial interest and documentation fee deducted from the amount funded.


Funding for a specific case is not set against a specific timescale but is designed to remain open and only repaid when the bill is settled.

Cost and Charges

There is a one-off fee to put the initial facility in place.
For each drawdown there is a fee of £75 or 1% of the Purchase Price if higher. There are no further fees payable for the duration of the funding.

The interest charged is extremely competitive. It is agreed with the law firm when the facility is put in place and is paid monthly on utilisation only.

Use of Funds

The funds released are the law firm’s to use as they require:

  • File acquisition, working capital
  • External costs including tax and insurance
  • Business expansion, Partner buy in / buy out


Increase Your Profitability – Example Case

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 cashflow needs 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)
Cost of VFS Funding
(3 months Interest + 1% fee on £50,000 funding)
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
Download Overview Document
Find out more about our Costs Advance Funding Facility in this PDF download

VFS CAF Facility

An Enquiry
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