Why Choose Armadillo?
Take cash flow concerns off your docket.
Armadillo Financial Partners was founded by a mass tort plaintiff attorney with the goal of helping other mass tort plaintiff attorneys.
This sets us apart from our competition in a crucial way. It puts us in a unique position to understand your specific issues and provide a practical and comprehensive litigation finance solution for you.
We know first hand mass tort litigation is a costly endeavor. We know when a new opportunity presents itself, how cash flow issues are most often one of the key variables in the equation that cause you to scale back your initial plans. Sometimes it even forces you to wait on the sidelines longer than you had hoped before being able to get into a docket.
We know it often takes years to develop and settle a docket. This impacts your cash flow while you cover case costs and operating expenses in the interim.
We understand your financial statements; e.g., why they do not look like traditional law firm’s financial statements, and the hurdles you face in obtaining adequate conventional lending from banks because of them.
Most importantly, we do also understand the value you have built up in your firm by acquiring the cases you have, whether they have settled or not. We are confident in our valuations of your projected attorney fees for those cases because of the skill and expertise we employ. We are here to offer institutional sized loans without personal recourse, typically ranging from $5 million to $50 million, with low interest rates and terms that can be tailored to the situation, utilizing those projected attorney fees as the collateral for your loan.
We appreciate the role you play, the work you do, and the risks you take as you conduct your practice. We are here to help.
Pursue cases on favorable terms.
We do understand how law firms like yours operate and thus typically require no scheduled interest or amortization payments. The loan is repaid from contingent fees as received.
We do respect your ability to handle the cases as you see fit. There is no fee sharing/fee splitting; borrowed capital is a straight loan.
We do know how to attach a fair value to those unsettled cases and treat those projected attorney’s fees as collateral for a loan. We have a unique valuation system to evaluate your projected attorney fees on dockets at every stage of development. Our competitors cannot value the collateral for firms like yours as well as we do because they do not understand how to properly assess the financial value of cases to the extent our team does.
We acknowledge each firm is different and has its own unique set of assets, challenges, and goals. We customize each loan to each Borrower’s needs. We offer competitive interest rates with a flexible repayment structure.
We do not give out a “one size fits all” loan. Instead we take the time to learn who we are working with in order to design the most comprehensive litigation finance solution for them.
Spare no expense and no effort in your pursuit of justice.
We understand the sometimes lengthy period of time that exists after cases have settled before you receive your fees. We respect that some litigation fees are more financially secure than others. Cases close to settlement, or cases that have already been settled where attorneys are simply awaiting fee disbursement may provide more favorable loan terms compared to recently initiated litigation. Most of our borrowers have taken advantage of an A-Note/B-Note loan structure when the situation allows for it.
We offer institutional sized loans typically ranging between $5 million and $50 million. Loan availability is determined by the collateral value we assign for pre-settlement and post-settlement cases. We recognize your needs will change over time. As you acquire additional collateral, we often have the ability to advance additional capital to you.
We trust you know the best way to use the loan proceeds and create additional value. Funds may be used for partner distributions, office expenses, debt restructuring, case work up, and marketing, as approved.
Mass tort litigation is a competitive industry where timing can be everything. We recognize this and have a prompt process that allows us to evaluate and fund your needs in a timely manner.
A simple process.
(1) Our process begins when we send you a NDA to execute and return to us along with the forms necessary for an audit to commence of your dockets and cases. This is necessary in order to establish a maximum loan amount given our LTV guidelines to aid us in initial discussions.
(2) If the initial audit presents a high enough collateral value to meet your goals for a loan amount, then a discussion will ensue between us to determine if we can offer you a loan with terms and options agreeable to all parties. A period of due diligence will occur where we will request and review a variety of documents from you such as entity formation docs, tax returns, financial statements, etc. A more extensive audit of your collateral will also be performed. Armadillo has established procedures so that we never have any access to your confidential client data. We use a mass tort plaintiff firm engaged in similar dockets as our other Borrowers to conduct the audit. NDAs will be exchanged between you and the audit firm to ensure your confidential client data remains confidential. Armadillo only receives unique case IDs with the audit report to identify and track your collateral for the duration of your loan.
(3) If we can come to agreement on terms, loan documents will be drafted and circulated for additional review and comments.
(4) An account would be established in your name at one of our local banks where we will receive the attorney fees that would otherwise be sent to you directly on the select cases that are pledged as collateral for your loan until the loan has been paid off.
(5) Once all the final documents have been executed properly, funds will be transferred via wire to the account(s) of your choice. Funds used to pay off another lender are wired directly to that lender.
The entire process can take less than 30 days depending on circumstances, if all requested documents are exchanged in an expedient manner and minimal or no changes are requested from the initial form loan documents.
The information provided herein is intended solely for the use of the party to whom Armadillo has provided it, is strictly confidential, and may not be reprinted or distributed in whole or in part nor may its contents be disclosed to any other recipient under any circumstances. All loan terms contained herein are subject to change. Offering of this product will occur only in accordance with the terms and conditions set forth in the long form loan documents. Not all prospective borrowing law firms may qualify. It should be noted that Mr. Nick Johnson, the Chairman & CEO of Armadillo, is also the owner of Johnson Law Group, the law firm which performs collateral valuation for potential borrowers. Johnson Law Group is a personal injury law firm with a focus on product liability, class action, pharmaceutical cases, nursing home negligence, and business litigation.