Litigation can be extremely expensive, and occasionally even people who have strong cases simply cannot afford to start a lawsuit. Lawsuit financing can help by providing some funds. Companies that provide these loans usually do not require credit checks, monthly payments, notes, or any other security. Frequently, claimants have missed work or lost their jobs and can no longer meet their rent or automobile payments. In the past, these claimants have needed to accept lesser settlement amounts due to pressing financial difficulties. Now, clients can sustain their personal lives and give the attorney the necessary time to achieve the full value of the case.
There are a handful of companies that provide lawsuit funding. For more information on these lawsuit loan companies please visit www.fredcoutts.com/indexlawsuit.htm. Each company provides funding that is specific to their criteria. All lawsuit-funding companies will provide funding for personal injury lawsuits. But it is more rare to find one that will fund commercial and other non- personal injury lawsuit cases.
One such company is the Legal Advances. On contacting Legal Advances, the client will be required to go through an application process that involves submitting information and providing the attorney’s contact information. Within 48 hours, the client and the attorney should have an answer. If Legal Advances agrees to provide a lawsuit cash advance, then that will be the extent of their involvement in the case. They do not provide legal advice or services, nor do they have anything to do with the strategy of the court case. They may, however, check in with the attorney from time to time to see how the case is going.
Global Financial is another company that deals with personal injury and worker compensation legal claims. This company offers a low cost lawsuit loan or cash advance against pending lawsuit settlements. Global Financial will review the merits of an applicant’s legal claim and determine the chance and size of a financial recovery. They then offer the claimant a small percentage of the total value of their claim in return for an assignment of a portion of the potential future proceeds in the claim. If there is no financial recovery from the claim, then the funding company receives nothing. This makes lawsuit loans very risky and actually more of a venture capital investment than an actual loan as the name suggests.
Rates will vary depending upon the risk. Lawsuit funding companies will generally finance up to 10% to 15% of the potential settlement value. For example, if the case has a potential value of $100,000, the client can expect a funding offer of $10,000 to $15,000. Lawsuit funding companies carefully analyze the cases they choose to fund. They must like the lawyer as well as the potential settlement value. Lawsuit funding is available in most states and can ensure that even a person in dire financial straits can see a meritorious lawsuit through to its just conclusion.