The solution to accelerating costs recovery, explained

You will recall our previous article dealing with the exciting new development between John M Hayes and Fee Solutions Ltd. By way of a reminder, our two companies are providing a facility whereby at the conclusion of a case solicitors can avail themselves of cash in advance of receiving their costs from paying parties, enabling them to avoid potentially compromising settlements, which in many cases might not otherwise have been conceded.

As an example of how this might work for you, take a bill of costs drawn at £121,476.70, with an assigned conservative floor of £73,800 (80 per cent of the realistic value of the receiving party's costs), of which the client wished to take full advantage.
A standard lend fee of 4.75 per cent for the first 90-day period was deducted.

On day 90, the advanced £70,294.50 became a repayable figure of £73,800.00. As the matter had not settled, a 1.58 per cent per month fee was charged upon the outstanding balance. This was rolled for a further
30 days with the interest compounding under instruction from the firm, and was rolled over again until 10 February 2015, when an interim payment of £47,500.00 was received. Deducting this from the outstanding balance of £76,150.50, the balance became £28,650.50. This itself attracted a 30-day interest charge of 1.58 per cent, hence the £452.68 added to give a new outstanding balance of £29,103.18, which was then repaid when settlement was obtained
from the paying party.

It is important to remember that once approved a solicitor can take any amount up to the 80 per cent cash advance value, and at different stages if preferred. There are no personal guarantees required, no set-up or drawdown fees, and this facility offers an excellent and cost-effective means of improving your cash flow position. SJ