Comparing MCA's & Cartiga Capital
Merchant Cash Advances (MCAs) may seem appealing for quick capital, they weren't designed with contingency fee law firms in mind.
MCA vs Cartiga Capital
Let’s examine a real-world comparison of financing an $80,000 advance.
Our unique structure – 50% current and 50% paid-in-kind (PIK) – means you only pay half the interest monthly, with the remainder accruing until case settlement.
| Breakdown | MCA | Cartiga |
|---|---|---|
| Principal Balance | $80,000 | $80,000 |
| Required Monthly Payment | $5,000 | $800 |
| Principal Reduction | $666 | --- |
| Balance | $79,333 | $80,000 |
| Effective Interest Rate | 65% | 24% |
Flexible Repayment
Payment terms that align with your contingency fee models during extended litigation.
Transparent Terms
Clear, competitive rates without hidden fees or triple-digit APRs.
Growth-Oriented
We provide capital for all your firm's needs, so you can focus on winning cases.
Frequently Asked Questions
Law firm financing is a financing solution designed for law firms and attorneys, providing working capital to cover practice-related and case management expenses. It allows personal injury firms to concentrate on their cases and alleviates cash flow concerns for contingency based practices. With flexible repayment options based on case outcomes or timelines, our financing allows you to grow your marketing, take on more cases, and expand the scope of your practice.
Collateral: In a traditional business loan, financial institutions review all business-related assets, which are then used as collateral. In contrast, attorney working capital evaluates the docket of cases and uses the anticipated attorney’s fees as collateral. Many traditional lenders do not consider contingency fees to be a viable form of collateral for a loan.
Repayments: Traditional business loans typically feature a fixed monthly repayment schedule based on principal and interest. However, attorney working capital is primarily repaid through a portion of the attorney’s contingency fee at the time of settlement.
Personalized: Cartiga working capital is staffed by attorneys who understand the cycle of revenue involved in contingency based firms and will work with you to craft a solution that meets your unique needs.
Step 1: Pre-Qualification
Fill out Part 1 of the application to see if you Pre-Qualify
Step 2: Case Docket Review
If Prequalified, submit your case list for review. We will select a few cases for document collection and Underwriting review.
Step 3: Underwriting
Our underwriters will evaluate the requested cases and make a determination for funding.
Cartiga helps law firms manage cash flow and expenses at different stages of litigation. We provide working capital on presettled and settled case fees to assist with your cash flow needs while you wait for funds to become available.
If you are primarily a contingency fee based firm, fill out our application to see if you qualify!
Our team is ready to review your application and get you the funds as quickly as possible, typically just a few days after you complete your application.
While law firm financing can be a valuable resource, it’s important to understand the potential risks involved. Like any business loan, law firm financing carries its own risks, with time being a significant factor. If your cases take longer to settle, you may incur higher interest and repayment amounts.
However, the risks are generally lower than with traditional or SBA loans. Notably, law firm financing does not require a personal guarantee, has no prepayment penalties, and uses only the expected fees from your cases as collateral.
