Call us today +44 (0)1722 417 065

Budget

Allowing cost draughtsmen to defer the cost of budgets

Cost draughtsmen are under pressure from law firms to defer the cost of budget preparation. Novitas provides a loan to the cost firm so they can maintain their own cash-flow whilst offering deferred terms to the law firm. For stage 1, Novitas will lend up to the higher of £1,000 or 1% of the approved budget, drawn down to cover the costs of preparing the budget. This is done following the approval of the budget at the first CMC.

 

For stage 2, Novitas will lend up to 2% of the approved budget. If the case is successful, the funding for the budget work is recovered by the cost consultant from the other side and they repay Novitas. If the case is stopped or is unsuccessful, the money advanced on that case is repaid by the cost firm.

Key benefits

  • Improved cash-flow – no need to wait for the case to settle to get paid
  • Improved third party relations – provide deferred fees for law firms
  • Simple administration - on-line system; just select case and the amount to draw
  • Fast payment - money received within 72 hrs from request
  • Flexible - funding provided as a facility, draw down on a client by client basis
  • Simple commercials – fixed admin fee per case, interest taken monthly