Barristers are to be given the option of offering clients ‘payment plans’ to fund current and future cases.

The Bar Council yesterday announced a partnership agreement with Legal Cost Finance for a new payment option.

The scheme is a third-party credit arrangement which is not restricted to any particular type of legal matter and is not tied to the chances of success.

Its backers say it can allow clients the option to pay for legal services by instalments over extended periods, while ensuring lawyers enjoy full payment of their bills on time.

Paul Mosson, director of services at the Bar Council, said: ‘We believe that [this] service will provide barristers with another valuable tool to secure work by presenting a payment solution for their clients, offering peace of mind to both the barrister and the client.’

The bar already offers an escrow account for financial arrangements between barristers and clients in the form of the Barco scheme. This is a service that holds client’s funds in a secure account without barristers having to hold onto the money.

Legal Cost Finance was founded in 2013 by Australian solicitor Dr Yuri Rapoport and has arranged loans valued at more than £1m in total.

Financing is provided by UK financial institutions, all of which are licensed under the Consumer Credit Act 1974 and/or the Financial Services and Markets Act 2000.

According to its website, clients are charged an initial application fee of £125 and a further fee of £165 upon approval of the credit facility. The application fee is to cover the cost of consulting services, which include communications with the lawyer to obtain a report about the merits of the case.