Lead facility — funder model

Overdraft and irresponsible lending claims. Return to the funder from loading, cost of credit and back end participation.

Clear Law · v2
Structure. The funder buys leads from the supplier and on-lends them to the law firm at a loaded price, taking the difference immediately. Interest accrues on the advance until fee income repays it. The back end is then shared between supplier and funder, on top of what the law firm retains.

Product and pricing

Prices here are what the supplier charges the funder. The loading is added in the funding section below.

%

Overdraft claim

£
£

Irresponsible lending opportunities

£
£
%
Supplier cost of leads—
Supplier cost per lead—
Spent on overdraft—
Spent on IL—

Funding

The funder pays the supplier and advances a loaded amount to the law firm. The loading is earned on day one; interest accrues on the advance until repayment.

Advisor margin

£

—

Advance

£
%
%
Funder cash out—
Advance to the firm—
Facility used—
Advisor margin—
Interest earned—
Effective annual rate—

Back end split

A share of the law firm's fee income on irresponsible lending claims, divided between supplier and advisors. Overdraft fee income is excluded, and the funder does not participate.

IL fee income only — overdraft work is excluded
%
%

—

Back end base—
To the supplier—
To the advisors—

Conversion

The retainer is already signed at source and the lender is identified before signing, so the only leakage is duplicates and clients who withdraw.

100% — fixed, DBA and LOA signed at source
0% — fixed, lender identified before the LOA is signed
%
%
%
Live clients—
Survival rate—
OB-backed at decision—

Claims and outcomes

One overdraft claim per client, plus the IL opportunities purchased.

Overdraft claims

%
%

Irresponsible lending claims

%
%

Ombudsman

%
%
%
£
£
Total claims raised—
Overdraft claims—
IL claims—
Blended uphold rate—

Redress quantum

The tier is a floor, not an average. In blended mode this table is replaced by the tier figures above.

Overdraft bandAverage redressShare of upheld OD claims
At the floor £ %
Mid £ %
Large £ %
Very large £ %

Weights total 100%.

£

Fees and cost to serve

Fee income is the headline rate applied to redress, restricted by the SRA fee cap bands.

%
%

—

%
£
£
£
£
Fee income—
Effective rate after cap—
Cost to serve—
Ombudsman fees—

Sensitivity

The first two grids show the funder's return on cash deployed. The third shows what the law firm is left with, which is what determines whether the facility gets repaid at all.

Funder return: advisor margin against months outstanding

Rows vary the advisor margin per lead; columns vary how long the advance stays out. The margin goes to the advisors, but the funder advances it and earns interest on it, so a larger margin lifts the funder return too.

Funder return: monthly rate against term

Rows vary the monthly interest rate; columns vary how long the advance stays out. The funder now earns interest and fees only, so these are the two levers that move its return.

Law firm profit after funding: uphold rate against months outstanding

Rows move all lender uphold rates together; columns vary the term. Red cells are where the firm cannot service the facility out of the book, whatever the funder's paper return says.