BigHand research highlights client demand for budget transparency and AFAs—and legal finance can help firms deliver
Recent research from BigHand shows that law firm clients increasingly want alternative fee arrangements (AFAs), signaling a continued shift away from the billable hour. Based on responses from approximately 800 senior legal finance professionals in the US and UK, including for the first time law firm respondents, the survey confirms a trend Burford has long tracked.
Nearly half (47%) of law firm respondents surveyed said their clients are asking for more AFAs. This aligns with Burford’s experience, as reflected in a recent roundtable discussion featuring top US law firm leaders on the rising popularity of contingency and other AFAs as clients seek predictability and risk-sharing, particularly in high-stakes matters.
Coverage of the BigHand report in Above the Law underscores a growing disconnect between client expectations and firm readiness. While clients demand better budgeting and transparency, many law firms are struggling to adapt. As author Stephen Embry states, only 30% of firms report employing resources such as financial analysts or data scientists to manage finances and budgets—leaving a significant opportunity untapped.
BigHand’s findings reinforce that clients want flexibility and transparency from their law firm partners. For firms, meeting these expectations doesn’t just require new pricing models—it requires new tools and capital solutions.
That’s where legal finance plays a crucial role. By partnering with providers like Burford, firms can access capital to support contingency and hybrid arrangements, manage the cash flow impact of delayed recoveries and offer clients the predictability they seek. Through portfolio facilities, monetizations and risk-sharing structures, legal finance enables firms to offer AFAs without compromising profitability.
As client expectations evolve, legal finance offers a bridge between innovative fee structures and sustainable firm economics.
