An Alternative Funding Arrangement (AFA) is an innovative form of legal finance that greatly reduces the risk of litigation whilst significantly increasing its affordability. Alternative Funding Arrangements mean that you pay your solicitor by means other than the usual hourly rate. This approach can often reduce the upfront costs and risks involved in litigation, allowing you to proceed more easily with your legal claim. There are various types of AFAs, including:
- Fixed Fees: your solicitor charges a fixed price for the work done
- Capped Fees: the fees you pay will be limited to a maximum threshold
- Blended Rates: instead of paying particular hourly rates for each individual fee earner working on your case, one hourly rate is applied across the board
- Conditional Fees: you only pay your solicitor if you win the case
Pros
- Low Risk: with various performance-related fees, the amount you pay depends on the success of your case, so the solicitor shoulders some risk on your behalf
- Low Cost: with conditional fees, for example, you don’t have to pay your solicitor anything upfront if you win, or anything at all if you lose
- Predictability: with fixed fees and capped fees, for instance, you have far greater certainty and control over legal costs than with hourly rates
Cons
- It’s Not Free: you will still have to pay legal fees, just in a more convenient way
As specialist litigation solicitors, we can connect you with various alternative funding sources if you instruct us to take your claim forwards. Please contact us to arrange a consultation.