Disbursement Finance for Law Firms
Fund the case now.
Recover the costs later.
Counsel, expert witnesses, medical reports and court fees all have to be paid long before a matter settles. Disbursement funding carries that outlay so the firm doesn’t have to.
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- We are a broker, not a lender
“Simon has been fantastic in supporting my business to secure suitable funding across several deals.”
Who this is for
- Lender searchWhole of marketNot tied to any one lender
- Instant QuotesNo credit searchSee indicative quotes first
- Who we helpProfessional practicesSole traders, partnerships, LLPs and companies
- Our roleSpecialist brokerWe approach suitable lenders for you
Quick answer
What is disbursement finance for law firms?
Disbursement finance pays the costs a law firm incurs on a client’s case before it settles, such as counsel’s fees, expert witnesses, medical reports and court fees. The funding is typically repaid when the case concludes, so the firm does not carry the outlay from its own working capital. We source disbursement funding from specialist lenders across the market.
The pressure
Fund the case now.
A firm running a volume of cases can easily have a significant sum paid out in disbursements at any one time, all of it waiting on settlement. Paying them from office account ties up capital that the firm needs for salaries, growth and its own liabilities, and it can limit the number of new matters the firm is able to take on.
The pressure grows with success. A firm that wins more instructions carries more disbursements, and in areas such as personal injury and clinical negligence, the most valuable cases can also be the slowest to conclude. Disbursement funding lets the caseload grow without the office account setting the limit.
What can be funded
What it can cover.
“Kind and highly efficient: I would highly recommend them for a fast, professional service.”
- 01 Counsel’s fees
- 02 Expert witness and medical reports
- 03 Court and issue fees
- 04 Searches, surveys and specialist reports
- 05 Other recoverable case costs
This page describes funding provided to the firm. Loans made directly to a firm’s clients to cover their disbursements are a separate, regulated consumer product.
How it’s often structured
Structured around the practice.
Usually a facility the firm draws on as disbursements arise, with each drawing repaid when the matter concludes and costs are recovered. Some funders look at individual cases; others fund a portfolio.
How we help
Not one lender. The right one.
We don't offer a single product. We look at what you're trying to fund, how your firm earns and spends, and which lenders in the market are most likely to support it. Then we prepare the case, approach suitable lenders and manage the process through to completion.
- Whole of market accessHigh street banks, specialist and private lenders.
- Specialist understandingLenders who understand how practices earn and grow.
- Your case, properly presentedStructured and put to lenders suited to it.
- With you to completionFrom the first conversation to funds arriving.
Disbursement funding explained
How does disbursement funding for solicitors work?
Disbursement funding for solicitors pays case costs such as counsel’s fees, expert and medical reports and court fees while a matter runs, usually through a facility the firm draws on and repays as each case concludes and costs are recovered. Professional Practice Loans, a specialist whole-of-market broker, approaches funders whose appetite suits the firm’s practice areas and caseload.
- Who it suits: firms carrying disbursements across a volume of matters, particularly personal injury, clinical negligence and other claimant litigation, where the most valuable cases can take longest to settle.
- How it works: the funder pays or reimburses each disbursement, and the drawing is repaid when the case settles. Some funders assess matters one by one, others provide a facility across a portfolio, and some combine it with WIP finance and costs finance so one arrangement covers the life of a case.
- What funders look at: practice areas and case types, how long matters take to conclude, historic recovery of disbursements, the current level carried, case management and risk assessment, any after-the-event insurance, and the firm’s accounts and SRA standing.
- What to watch: who carries the cost if a case is lost, how charges build up on long-running matters, and the difference between funding for the firm and loans made to clients, which are a separate regulated product.
Funding arranged for the firm is the firm’s own borrowing, kept separate from client money, and the SRA Accounts Rules govern how client money is held. The Law Society lists disbursement funding among its funding options for law firms, and our guide to WIP finance for law firms shows how it fits with the other options. See solicitor practice loans for everything we arrange for law firms.
Ready to compare options? Get instant quotes for disbursement funding, or talk your caseload through with a specialist.
What lenders will want to see
What lenders will look at.
- The firm’s practice areas and case mix
- Historic success rates and how long matters typically take to conclude
- The level of disbursements currently carried and how they are tracked
- How costs are recovered, including any after-the-event insurance arrangements
- The firm’s accounts, management information and SRA standing
Disbursement funders differ widely in the case types they support and how they assess them. We know which parts of the market suit which practice areas. Our guide to WIP finance for law firms explains how disbursement funding fits with the other options.
Who this is for
Questions
What firms usually ask.
How does disbursement funding for solicitors work?
A funder pays case costs such as counsel’s fees, expert reports and court fees while a matter runs, usually through a facility the firm draws on and repays as each case concludes. Professional Practice Loans, a specialist whole-of-market broker, approaches funders whose appetite suits the firm’s practice areas.
What is disbursement funding for solicitors?
Disbursement funding is finance arranged for a law firm to pay case costs such as counsel’s fees, expert and medical reports, court fees and searches before the matter concludes. Each drawing is usually repaid when the case settles and the costs are recovered, so the firm doesn’t have to carry that outlay from its office account. The Law Society lists disbursement funding among its funding options for law firms.
How does a disbursement funding facility work?
Typically the firm has a facility it draws on as disbursements arise, and each drawing is repaid when that matter concludes and costs come in. Some funders assess individual cases, while others fund a portfolio across the caseload. We search the market for funders suited to your practice areas and manage the process through to drawdown.
Can disbursement finance help our firm take on more cases?
It can. When disbursements are paid from office account, the capital tied up can limit how many new matters a firm is prepared to take on. Funding that outlay frees working capital for salaries, growth and the firm’s own liabilities. Whether it suits your firm depends on your caseload, practice areas and how reliably matters recover costs.
Is disbursement funding for the firm the same as a disbursement loan to a client?
No. This page covers funding arranged for the firm itself. Loans made directly to a firm’s clients to cover their disbursements are a separate product and can be regulated consumer credit. If you are looking at client-facing funding, tell us at the outset and we can explain how that differs.
What do disbursement funders look at before offering a facility?
Lenders usually want to understand the firm’s practice areas, the types of matter being funded, historic recovery of disbursements, case management and risk assessment processes, and the firm’s accounts and existing borrowing. Criteria vary between funders, which is why we prepare the case and approach the lenders most likely to support your type of work.
Knowledge Hub
Read the guides.
WIP Finance for Law Firms: Funding Work in Progress, Disbursements and Lock-Up
Why profitable law firms run short of cash, the funding options that bridge work in progress and disbursements, and what lenders look at when assessing a firm.
Read the guide →Reducing Lock-Up in Professional Firms: How to Measure It and Bring It Down
How to measure lock-up in a professional firm, what drives it, the practical steps that reduce it, and where finance bridges the gap rather than fixing it.
Read the guide →Let's talk
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