Frequently Asked Questions

Why not borrow from a bank?

Always consider the bank first. However, most banks cannot give any monetary value to your contingent cases for borrowing purposes under federal and state laws. However, to the extent that you or your firm has a current bank line, California Attorney Lending can also augment that loan or pay it off, thereby releasing your personal collateral to you!

How much can I borrow?

The law firm's borrowing power is based upon an estimate of the total value of your case portfolio - whether contingent or otherwise, as determined by you and our experienced staff attorneys. Banks won't and can't loan your law firm the amount of money it needs. We do.

What expenses can I pay?

You may utilize the proceeds for ANY business related purpose, including case expense, experts, advertising, payroll, general office expenses, retirement plan funding or to relieve everyday cash flow problems. It's working capital for your law firm.

How long does it take?

Applying for attorney loans at California Attorney Lending is quick and easy:

1. Fill out a short application (which can be done conveniently online).
2. Send CAL certain documents as requested.
3. Pay a non-refundable $500 application fee.
4. Funding can occur as soon as five business days thereafter.

What are the terms of the loan?

We offer flexible repayment terms and interest-only payments for the first two years. Generally, principal payments are then amortized equally over the following two years.

Are monthly payments tax deductible?

Yes, all monthly interest payments made to California Attorney Lending are tax deductible as "ordinary and necessary" business expenses, which will save you and your law firm money. You receive no tax benefits when you finance your own cases - unless you lose! In addition, interest on loans for client expenses can usually be charged to the client (check your local state ethics rules or call us to receive a copy of the opinion in your jurisdiction).

Is California Attorney Lending in any way associated with our legal cases?

ABSOLUTELY NOT. California Attorney Lending is not involved with your clients or legal cases. We have a working relationship with the law firm as any lender would. You, of course, remain in complete control of your entire portfolio.