Introducing X Social Capital. A New Way To Get Funding

March 28, 2022

The Problem Explained:
Today in our industry many law firms rely on capital funding via what is normally known as a Hedge Fund loans. The law firm pledges attorney’s fees coming on their Docket in exchange for financing that traditional banks do not offer.
The hedge fund loans are consistently over three times current bank rates and usually over 20% per year. The rates go from about 17% to 24% depending on how good the lawyers docket is. If a law firm loaned 10 million today in 3.6 years, he will owe more than 20 million.
It takes time before the lawyers gets paid and as an example a tort like Roundup has now run for 7 years. While the lawyers get paid well a lot of that profit end up with the hedge funds because of the 17%-24% interest rate.
Probably 50% or more of the law firms we deal with are getting loans like this.
The Solution
We set out to come up with a solution to fix this industry wide problem. We offer a unique product, the first of its kind to be offered commercially, that will insure a Mass Tort docket. The insurance premium to insure a minimum value of a mass tort docket is between 6-12%, depending on collateral, loan amount, etc.  Final premium amount is determined by the insurance carrier.
Our process provides our loan applicant to be matched with the right lender coupled with an A Rated insurance company. The Insurance will guarantee the principal loan amount. A commercial lender that is interested in an insurance company which is A Rated backing these loans will be able to offer a rate that is below current market rates because of the insurance wrapper.
The time it takes for the insurance to rap the mass tort docket is between 45-60 days from start to finish. This allows the insurance company time to do their due diligence on the docket they are insuring. Today we have 5-7 lenders that are willing to engage with us on this product at a very competitive rate.
We see the market in its infancy right now but as more and more people take advantage of A Rated insurance on their Mass Tort Docket we believe we can drive the lending rates down to a healthy level for our industry.
Have feedback? Want to see something specific? Have questions? Want to setup a call to discuss or get started? Email jacob@xsocialmedia.com
MTMP VEGAS
April 5-7, 2022

Mass Torts Made Perfect is more than just a conference – it’s a place for plaintiff attorneys to connect, network and learn more about the top mass tort and class action lawsuits in the country. To achieve our mission of keeping plaintiff attorneys connected, we host bi-annual conferences in the spring and fall of each year, along with webinars throughout the year that cover essential topics for individuals working in the area of plaintiff mass torts and class actions.

Whether you are an experienced trial attorney looking for the inside scoop on the latest cases or a paralegal looking to learn the basics, MTMP can help you grow your skills and practice.

Be sure to catch us in-person at MTMP, Jacob, Lucas, Paul, and Josh will all be attending. Let us know if you can schedule a sit-down while in town! Our schedules will fill up quickly.
Mass Torts Puerto Rico
May 4-6 2022

Mass Torts Puerto Rico is a first-of-its-kind event you won’t want to miss. This for attorneys by attorneys event promises to be two unforgettable days of substantive programming, all-inclusive seaside parties, and an environment cultivated for personal connections with some of the most outstanding and highly respected trial lawyers in the country. Come learn from world class experts in an intimate setting while earning CLE General and Ethics credits.

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