Posted by Sara Mebtouche, borrower relations associate at Legal Futures Associate Fenchurch Legal [1]
Mebtouche: Good firms scale cautiously and deliberately
The consumer litigation market is evolving quickly. Firms operating in high-volume areas such as housing disrepair, financial mis-selling and redress-related claims now face increased regulatory scrutiny, rising operational costs and a more competitive industry.
Recent commentary from the Solicitors Regulation Authority (SRA) has highlighted recurring concerns across parts of the sector, including weaknesses in client journeys, inadequate oversight of introducers, unrealistic marketing practices and poor case progression.
While these issues do not reflect the market as a whole, they reinforce a wider reality: the gap between well-run firms and those struggling to manage volume effectively is widening.
As a litigation funder, Fenchurch Legal works closely with law firms and claims management companies across the consumer claims landscape, conducting detailed due diligence before providing funding. This gives us visibility of how firms operate – from their workflows and financial structures to leadership behaviour and governance frameworks. While every firm is different, we see consistent traits among those that perform well over the long term.
From a funder’s perspective, here’s what consistently sets top-performing consumer claims firms apart.
A focus on case quality, not just volume
The firms that succeed long-term prioritise the quality of cases they take on, rather than pursuing volume for its own sake. They take a disciplined and compliant approach to acquiring clients, with clear oversight of introducers and marketing channels.
These firms understand their cost of acquisition, track conversion rates realistically and design intake processes that set accurate expectations for clients from the outset. They monitor case progression closely and apply structured vetting criteria before cases are accepted into the portfolio.
Crucially, they are prepared to walk away from introducers or marketing channels that lack transparency or raise compliance concerns. Short-term volume is never allowed to outweigh long-term regulatory, reputational or financial risk.
This approach aligns closely with the themes raised by the SRA: strong firms retain control over how work enters the business and take responsibility for the entire client journey.
Visible, engaged and accountable leadership
Leadership engagement is one of the clearest differentiators between firms that scale successfully and those that struggle. High-performing firms are led by individuals who remain closely involved in the operational reality of the business.
They understand where cases tend to slow, how long evidence gathering typically takes, what their teams can realistically handle, and how cash flow behaves across the lifecycle of a claim. This visibility enables faster decision-making, more effective supervision and earlier intervention when issues arise.
Importantly, these firms scale cautiously and deliberately. Growth is pursued only when systems, staffing and funding structures are capable of supporting it, ensuring that increased volume does not come at the expense of client care or file quality.
Operational discipline that supports scale
Volume itself is not the problem; unmanaged volume is. Firms that perform well at scale invest in operational structures that allow caseloads to grow without compromising standards.
They operate with clearly defined workflows and consistent processes across the full lifecycle of a claim, from onboarding through to resolution. Common features include:
- Well-configured case management systems;
- Consistent evidence-gathering processes;
- Documented workflows and policies;
- Regular case reviews and progress checks; and
- Reliable and complete record-keeping.
Many also embed after-the-event insurance requirements directly into their workflows, reducing friction and minimising the risk of disputes later in the process.
Financial clarity and realistic forecasting
Financial maturity is another hallmark of strong firms. Those that perform well forecast conservatively and in line with their actual operational rhythm, rather than best-case assumptions.
Marketing spend, staffing levels and funding drawdowns are aligned to realistic settlement timelines and evidence-gathering speeds. Clean financial records are maintained, and working capital demands are clearly understood.
Importantly, these firms avoid relying on future settlements to resolve short-term cash flow pressure. Instead, they maintain sufficient buffers to absorb delays and fluctuations. This approach supports stability and gives external stakeholders confidence in the firm’s resilience and long-term viability.
Consistency in file quality, reporting and client care
One of the most noticeable traits of successful firms is consistency. File quality is predictable, data is kept up-to-date, evidence is gathered proactively and clients are kept informed throughout the process.
Red flags such as large volumes of dormant files, missing documentation or incomplete file notes are rare, not because problems never arise, but because systems and oversight are designed to identify and address issues early.
This consistency is not accidental; it is the outcome of disciplined leadership and process-driven operations.
Looking ahead
The consumer claims market is becoming more demanding, not less. Regulators expect stronger controls, insurers expect evidence-based case handling and clients expect transparency and professionalism throughout their claims.
From our experience, the firms best positioned to succeed are those that view these expectations as a foundation rather than a burden.
Quality case acquisition, engaged leadership, operational discipline, financial clarity and consistent client care are no longer optional extras. They are fast becoming the baseline for firms seeking to grow sustainably in today’s environment.
For those prepared to invest in these foundations, the opportunity remains significant. The difference is that success now depends less on how quickly firms grow and more on how well they are set up to do so.