Pre-Paid
Forwards

A pre-paid forward is not a loan. It's a pure buyout. A capital provider purchases a percentage of your firm's future fees at a discount today, giving you immediate cash in exchange for a portion of settlements you haven't collected yet. There's no interest, no monthly payments, and no repayment schedule. You sell a slice of your future, and you get the capital now.

Key Benefits
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Immediate cash
No debt or interest
Repay from settlements
Off balance sheet
Sell future fees today. Receive immediate capital with no debt.
Key Features

How Pre-Paid Forwards Work

This isn't lending. It's a sale. You're selling a portion of your future attorney fees to a buyer who pays you upfront at a discounted rate.

It's a Buyout, Not a Loan
This is the most important thing to understand. A pre-paid forward is a sale of future receivables. A capital provider looks at your docket, estimates the future attorney fees your cases will generate, and offers to buy a percentage of those fees at a discount. You receive the cash now. When cases settle, the buyer collects their purchased share directly from the settlement proceeds.
Zero Interest, Zero Payments
Because this isn't a loan, there's no interest rate and no monthly payment schedule. You're not borrowing money. You're selling an asset (your future fees). The 'cost' is the discount the buyer applies. If your fees would have been $10M, and the buyer purchases 30% at a 25% discount, you receive $2.25M now and the buyer collects $3M when cases settle.
No Debt on Your Books
Since a pre-paid forward is structured as a sale rather than a loan, it doesn't appear as debt on your firm's balance sheet. This is a significant advantage for firms that want to maintain clean financials, whether for banking relationships, partner distributions, or future fundraising.
Immediate Capital Deployment
The capital you receive can be used for anything, case costs, hiring, marketing, office expansion, case acquisition, or personal distributions. There are no restrictions on use of funds because you've already sold the fees. It's your money.
Repayment Only From Settlements
The buyer collects their purchased percentage only when your cases actually settle. If a case takes longer than expected, the buyer waits. No accelerated payments, no default triggers, no pressure on your firm. If a case is lost entirely, the buyer absorbs the loss on their purchased share.
How the Discount Works
Buyers price pre-paid forwards based on your docket's expected value, timing, and risk. The discount typically ranges from 15%–35% depending on portfolio quality and expected resolution timeline. Shorter-expected timelines and higher-quality dockets command smaller discounts (better pricing for you).
Full Transparency

Pros & Cons

An honest look at both sides. So you can make the best decision for your firm.

Immediate Cash, No Debt
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You receive capital immediately without taking on any debt. The transaction is a sale, not a loan. So your balance sheet stays clean, your credit profile is unaffected, and you have no ongoing payment obligations.

No Interest Accumulation
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Unlike loans and credit lines, there's no interest clock running. Your cost is the upfront discount, agreed at the time of sale. Whether cases settle in 6 months or 6 years, your cost doesn't change, the buyer bears the time risk.

No Monthly Payments
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There's nothing to service. No monthly interest, no principal repayments, no covenant compliance. The buyer simply collects their share when cases settle. Your firm's cash flow is completely unencumbered between now and settlement.

Flexible Use of Capital
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Once you receive the funds, they're yours. No restrictions on use. Invest in marketing, hire attorneys, acquire cases, cover operations, take partner distributions, or build reserves. The buyer has no say in how you deploy the capital.

Non-Recourse on Individual Cases
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If a specific case is lost or dismissed, the buyer absorbs the loss on their purchased share of that case's fees. You don't owe them anything for cases that don't produce recoveries. The risk shifts to the buyer at the point of sale.

Balance Sheet Clean
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Because it's a sale, not a loan, the transaction doesn't create a liability on your books. This matters for banking relationships, partner buyouts, firm valuations, and any situation where your firm's financial health is under scrutiny.

The pros and cons above are illustrative and not exhaustive. Every funding structure carries firm-specific legal, tax, and financial considerations. Always consult your CPA and an attorney before entering into any funding arrangement.

Deep Dive

The Mechanics of Pre-Paid Forward Structures

A pre-paid forward is one of the most misunderstood capital structures in litigation finance. But also one of the most powerful for firms in the right situation. Unlike a loan or credit line, a pre-paid forward is a pure sale of a portion of your future case fees. You sell a defined percentage of your expected settlement revenue at a discount, receive cash immediately, and the buyer collects their portion directly from settlements as cases resolve. There is no interest. There are no monthly payments. There is no debt on your balance sheet. The buyer takes ownership of that fee stream and bears the risk of collection timing and case outcomes. The discount rate, typically 15-35% depending on portfolio quality and expected resolution timeline, is the buyer's compensation for taking on that risk and providing capital today. For example, if your firm expects $10M in future fees and sells 30% at a 25% discount, you receive $2.25M immediately. The buyer then collects $3M from your settlements as they resolve. The effective cost depends entirely on how quickly cases settle, faster resolution means a higher annualized cost, but you've had the capital working for your firm the entire time.

Common Applications

How Firms Use This Capital

01
Generate immediate cash without creating any debt
02
Fund firm operations while maintaining clean balance sheet
03
Deploy capital for case acquisition and marketing
04
Bridge between current operations and future settlement revenue
05
Fund partner distributions or firm restructuring
06
Invest in technology, hiring, and infrastructure
07
Cover overhead during extended litigation timelines
08
Monetize strong portfolio without borrowing against it
Key Considerations

What to Know Before You Apply

It's Irreversible

Once you sell a portion of your future fees, you can't buy them back. The buyer owns that fee stream permanently. Make sure the capital you receive justifies the portion of future revenue you're giving up.

Discount Rates Vary Widely

Discount rates range from 15-35% depending on portfolio quality, resolution timeline, and buyer competition. Getting multiple offers is critical, even a 2-3% improvement in discount rate can represent hundreds of thousands in savings.

Settlement Coordination

The buyer needs visibility into settlement timing and direct collection from proceeds. This requires coordination with your settlement team and potentially your banking partner. Understand the operational requirements before committing.

Complex Valuation Process

Buyers need detailed data on your portfolio, case types, stages, expected values, and resolution timelines, to price a forward accurately. Our memo team streamlines this process significantly.

The Tortlink Advantage

Why Choose Tortlink for Forwards?

Pre-paid forwards require a specialized buyer pool that most firms can't access on their own. Tortlink's network includes capital providers who actively purchase litigation fee streams, and our platform generates the detailed portfolio analytics these buyers need to evaluate and price your forward accurately. We ensure competitive tension between buyers to drive the best discount rate for your firm.

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