As you may recall, I blogged earlier about refinancing onerous, costly funding deals. You are really doing your client a solid favor if you do.
Real life case in point. Just did a deal where the client had an $850k verdict up on appeal. He owed three funders a total of about $92,000; average rate of the three was about 45% annually. Attorney asked me to consolidate and refinance the rate; which I did at 15% every 6 months, no monthly compounding.
So on our new deal it will cost the claimant around $28,000 per year. Under the old agreements , he would accrue about $45,000 /per year.
You be the judge: Did refinancing make sense? Contact me to discuss options that are available.
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