South Africa sees more than 800,000 road accidents every year, one of the highest rates in the world. But beyond just the numbers, being in a serious car accident is usually incredibly distressing and can completely alter a person’s life. And it becomes even more challenging when having to deal with the worries of covering medical bills while waiting for compensation from the Road Accident Fund (RAF) after the claim has been settled in court.
Back in 2015, a media statement highlighted the RAF’s dire financial condition, disclosing an outstanding backlog of unpaid claims exceeding R17 billion. Unfortunately, the situation has only worsened since then, as ongoing financial and management challenges have made it increasingly difficult for the RAF to process claims fairly and on time.
But what are the implications for you, the attorney representing these claimants? We’ll get to that in a moment.
The Heavy Price of Handling High-Stakes Cases
As a personal injury attorney, your income can vary significantly from month to month. Some periods bring more financial rewards than others, even as your experience and professional reputation grow. This unpredictability is inherent in this field of law, where court dates, settlements, and RAF payments can be inconsistent, which can lead to challenging financial situations.
As you’re well aware, undertaking cases involving claimants with significant or complex injuries demands extensive time for investigation and thorough preparation. Add to this the substantial costs associated with obtaining medical and expert opinions to support your clients’ claims.
While larger law firms may have the resources and confidence to manage these types of cases, the truth is that many attorneys, especially those in smaller practices, may not be financially prepared to navigate these demands. Does this sound like you? If so, then it might be time to shift your perspective. A financial lens can help you start thinking like an investor, not only like a lawyer.
Why You Need to Adopt an Investment Mindset
As a personal injury attorney, every case you undertake is, in essence, an investment opportunity. Every month you incur the fixed running costs of your firm as well as disbursements. However, the payoff at the end can be significant – a Return on Investment (ROI) that clearly outweighs the associated costs. When you embrace this perspective, you open the doors to immense growth potential and success for your firm.
Imagine, just for a moment, the scenario where you have the financial resources and support to double your caseload. Your firm’s future would look remarkably different, wouldn’t it? Increasing your clientele would mean extending your reach in the legal market – and, naturally, offers the exciting potential for increased revenue and higher profits.
With the right bridging solution – one that grants you access to growth finance – you can accelerate your firm’s expansion. By leveraging your firm’s largest asset, your outstanding contingency fees, you can access the funding required to cover the medico-legal disbursements needed to move your work in progress forward.
Opt for Snooze Mode or Fast-track Your Funds with Taurus Attorney Advance
It typically takes the RAF about 180 days or more to disburse funds for your client’s RAF claim after the settlement. Now that you realise that every RAF case you take on contributes to your firm’s growth, would you rather sit on your hands for those 180 days or get the funds sooner and speed up your client settlements?
If you’re not leaning towards the latter option, you haven’t fully embraced that investor mindset yet, and you might want to learn more about Taurus Attorney Advance and then crunch those numbers again.
With Taurus Attorney Advance from Taurus Capital, you can get upfront cash for the fees tied up in your firm’s Road Accident Fund cases. You can get up to 50% of what you’re owed right away, which lets you take on more clients at a time, improve your cash flow, expand your firm, and focus on getting justice for those who genuinely need it.
What Are the Main Concerns with Extended RAF Delays?
Firstly, as we’ve mentioned, the six-month waiting period creates a bottleneck that hinders your law firm’s growth. When you have fewer cases getting paid, it directly impacts your revenue and disrupts the cash flow you need to meet essential overhead costs.
Without the expected contingent fees from settled cases, your firm might face difficulties in meeting its operational costs, including salaries, rent, and other expenses. This financial trap can limit your firm’s ability to expand and make progress in other cases, thereby affecting your growth potential.
On top of that, the extended waiting time for compensation can strain the relationship between you and your clients. As the wait drags on, they might get jittery in the process and in some cases, even lose confidence in your abilities as an attorney. In the worst-case scenario, they might consider seeking legal help elsewhere or even lodge complaints against your practice. If this happens, it can be detrimental to your firm’s reputation and hinder your efforts to acquire new clients in the future.
The Bottom Line
When dealing with RAF settlements, the lengthy waiting times can be stressful and frustrating for both you and your client. But the good news is that partnering with Taurus Capital can help alleviate all these concerns. You can rely on us to make sure your clients get the funds they need, so you can fully concentrate on your legal responsibilities, knowing that the financial aspects are in capable hands.
To date, Taurus Capital has helped 224 attorneys access bridging finance against R500 million in trapped contingency fees. If you’d like to learn more about how we can support your law firm’s growth and grant you access to working capital at lower rates, feel free to get in touch with our team. We’d be happy to assist you right away.
