Personal injury claims specialist Claimline is in talks with two banks to fund a massive expansion plan with the long-term goal of floating on the stock market.
The Surrey-based company, which operates an after the event (ATE) claims recovery service involving a panel of 45 legal firms, is seeking to raise at least several million pounds.
Company secretary Jeremy Wolff said: “We are in discussions with two large financial institutions over the prospect of them investing significant funds in Claimline.”
Claimants are not required to pay a premium for their ATE cover, which is met by Claimline's panel of law firms, nor are any costs deducted from their settlement.
Legal costs are obtained from liability insurers when a claimant wins the case.
Claimline meets its costs by charging its panel solicitors a £300 flat fee for undertaking preliminary claims work.
The company is accepting up to 600 cases a month at the moment.
Wolff claims that Claimline offers one of the lowest premiums in the ATE market – £876 to pursue an employer liability claim, compared to £2,520 for the Law Society's ATE product.
He said Claimline's premiums were lower because potential claims cases were vetted by three separate legal teams before they were accepted.
This filtering process reduces the number of spurious or borderline cases, reducing the cost to liability insurers.
It also ensures solicitors have detailed information on each case before they start work, enabling them to accurately determine their level of success fee.
Wolff said the company preferred to negotiate with liability insurers rather than resort to litigation to settle cases.
He said: “Our panel solicitors are instructed to handle claims in a responsible and reasonable manner and not to go on a cost-building exercise.”
