By: 14 November 2014
Just Costs Solicitors and Novitas Loans launch new funding scheme for PI firms

Just Costs Solicitors and Novitas Loans have launched a new funding scheme for industrial disease, personal injury and clinical negligence lawyers to help them complete work in progress (WIP) and improve cash flow.

Mark Hartigan, client services director at Just Costs Solicitors, said that the scheme offered unlimited funding to firms that had considerable sums of money tied up in WIP, which significantly constrains the money they have available for growth.

The scheme advances a fixed sum to firms for each case when it has reached a certain stage in its development. The size of the loan facility and the amount per case that can be drawn down is agreed per firm.

Just Costs Solicitors conducts a WIP audit on a firms’ files and Novitas provides the funding for the scheme.

Jason Reeve, managing director at Novitas Loans said that it was a very flexible source of funding which did not require any personal guarantees.

“We believe it will be of widespread appeal,” he said.

Last year, Just Costs Solicitors and Novitas launched a costs advance scheme, equivalent to invoice discounting, which is now lending over £1 million every month to law firms.

The costs advance scheme helps firms’ bridge the gap between applying for and receiving their case fees.