- What does it cost?
- Is there an application fee or a collateral inspection fee?
- Are there any legal fees?
- Are there any audit or quality assurance review fees?
- Are there any pre-payment penalties?
- Do you check my credit?
- Is there a renewal fee?
- What can the funds from Advocate Capital, Inc.’s Working Capital lines of credit be used for?
- How is interest calculated and billed?
- How long does it take to get approved?
- When does the principal need to be paid back?
- How often can funding requests be made on a Working Capital line of credit?
- Is there a minimum amount that can be borrowed at one time?
- Is there a maximum amount that can be borrowed at one time?
- What is the collateral for a Working Capital line of credit?
- Does the Working Capital line of credit require personal guarantees?
- Does a Working Capital line of credit require on-site audits of the law firm?
- Do I have to pay the line of credit down to zero once per year like my bank makes me do?
What does it cost?
Advocate Capital, Inc.’s Working Capital line of credit includes an annual fee based upon the size of the line and an annual interest rate that floats with the Prime and/or LIBOR rates as published in the Wall Street Journal. Check with one of our financial advisors for current pricing by calling toll-free 1.877.894.9724.
Is there an application fee or a collateral inspection fee?
No.
Are there any legal fees?
As long as the line of credit is not in default, no.
Are there any audit or quality assurance review fees?
As long as the line of credit is not in default, no.
Are there any pre-payment penalties?
No.
Do you check my credit?
Yes. We do a standard credit bureau check on any law firm partner owning 20% or more of the law firm. We normally use Equifax to pull a Beacon (FICO) score.
Is there a renewal fee?
As mentioned above, there is an annual fee based upon the size of the line. Current pricing on the Working Capital annual fee can be obtained by calling toll-free 1.877.894.9724. Aside from the annual fee, there are no other renewal fees.
What can the funds from Advocate Capital, Inc.’s Working Capital lines of credit be used for?
The funds from Advocate Capital, Inc.’s Working Capital lines of credit can be used for any commercial purpose at a law firm. This includes, but is not limited to, case expenses, advertising, payroll, equipment, rent, tax payments, partner distributions, etc.
How is interest calculated and billed?
Interest is calculated as “simple interest” (not compound) and billed once per month. Borrowers using Advocate Capital, Inc.’s Working Capital product make monthly interest-only payments for as long as there is a balance on the line of credit.
How long does it take to get approved?
The approval process normally takes 4 to 5 business days once all necessary documentation has been received at the Advocate Capital, Inc. offices.
When does the principal need to be paid back?
As long as the Working Capital line of credit continues to get renewed annually and is not in default, principal can be paid back whenever the borrower wishes.
How often can funding requests be made on a Working Capital line of credit?
There is no limit.
Is there a minimum amount that can be borrowed at one time?
No.
Is there a maximum amount that can be borrowed at one time?
Other than the overall credit limit of the particular Working Capital line of credit, there is no limit on the size of a funding request.
What is the collateral for a Working Capital line of credit?
The collateral is the accounts receivable of the law firm. Advocate Capital, Inc. must have a first-position lien (UCC-1) on all of the law firm’s accounts receivable. Also, without written permission from Advocate™, no second-position liens on the law firm’s accounts receivable are permitted.
Does the Working Capital line of credit require personal guarantees?
Yes. Any partner owning 20% or more of the law firm will be required to sign a personal guarantee.
Does a Working Capital line of credit require on-site audits of the law firm?
As long as the Working Capital line of credit continues to be renewed annually and as long as the Borrower is not in default, there are normally no on-site audits of the law firm.
Do I have to pay the line of credit down to zero once per year like my bank makes me do?
No. Advocate Capital, Inc.’s Working Capital line of credit has no annual pay down requirement, unlike many banks.
