The answers included in these "Frequently Asked Questions" are for information purposes only. Further details can be obtained by reading the pro-forma Loan Agreement included in your pack or by contacting your OFS Manager.
1. What does OFS stand for ?
Outlays Funding Services.
2. What does OFS offer ?
Finance to personal injury Law Firms to invoices from Medico Legal experts, Engineers, Accountants, Investigators and other specialists required to advance personal injury matters.
3. Who is behind OFS ?
A group of high net worth investors who have recognised the need for this service from both injured persons and solicitors for this service.
4. How does it work ?
OFS meets the appropriately authorised representative of the Law Firm to introduce the Company and the service offered. If interested, the Law Firm completes an Account Application Form (available on this website). OFS considers the Application and (if successful) appoints an Account Manager & sets an Account Limit.
The Law Firm then executes the Contract & sends to OFS a schedule of invoices and copies of invoices it would like paid. OFS attends to the payment of the invoices and advises the Law Firm that the invoices have been paid. The Law Firm can then contact the service providers to note that the invoice has been paid, requesting the issuance of the expert reports.
The Law Firm will repeat the exercise of sending invoices and a schedule of invoices to OFS as required. OFS will process invoices (usually) on a daily basis.
The OFS Account Manager will meet with the Law Firm periodically to discuss the account. When the Law Firm is nearing settlement, the firm simply emails OFS for a payout figure as at the estimated settlement date.
Once settlement monies are received into the Trust Account of the Law Firm, the Firm has 7 days to settle the loan with OFS.
It is then up to the Law Firm to reimburse itself from the settlement monies, with the injured client's permission, by a Trust Account Authority signed by the injured client.
5. What does OFS charge ?
It depends on how much is paid by OFS in respect of the invoice & the length of time between payment by OFS and payment by the Law Firm to OFS.
6. Who is responsible for payment to OFS ?
The Law Firm. OFS envisages that (without offering legal advice) each Law Firm would have an appropriately worded costs agreement with their clients permitting the law firm to obtain Third Party Funding from OFS and for the reimbursement of monies paid to OFS by the Law Firm to be paid to the Law Firm by the client upon conclusion of the matter. The party to the Agreement with OFS is the Law Firm, not the injured client.
7. So is the repayment to OFS dependent upon the client receiving compensation ?
OFS does not offer the service on a speculative basis. It is on a deferred fee basis. All accounts are to be paid upon conclusion of claims, irrespective of the outcome, or no later than 3 years after payment of the invoice by OFS, whichever is the earlier.
8. What if the claim is unsuccessful or the client of the Law Firm discontinues the claim, instructs other solicitors, disappears or dies ?
On the rare occasions when a matter results in a nil result for a Law Firm, OFS is quite prepared to discuss applying a lower rate of Interest.
9. Is there a minimum amount of invoice OFS will pay ?
Yes. The minimum individual invoice available for processing is $500.00.
Typically OFS will pay for outlays such as reports from medical experts, engineers and accountants but not for photocopying fees, court filing fees and the like.
9. Can I apply for an increased account limit if I have exhausted my limit ?
Yes. OFS will review requests for account increases on a case by case basis but may need some additional information to consider such requests.
10. If the Law Firm decides that it wishes to proceed, and OFS approve the facility, how long does it take from initial meeting to payment of first invoices ?
It would be reasonable to estimate 14 days, from initial meeting, provided the necessary paperwork is fully completed promptly by the Law Firm.
11. What are the upfront costs?
There are no origination or document preparation fees.