Litigation funding is a commonly referred to concept in the financial lending and lawsuit industries. It is the process of raising private monies to assist plaintiffs in pursuing a lawsuit. Although the lending industry has been instrumental in assisting plaintiffs in overcoming economic hardship for decades, the concept has only recently received widespread attention. This article will explore the lawsuit funding industry and describe some of the common sources of lawsuit cash. Learn more about this service on this page.
Commercial litigation funding services tend to fall into two basic categories: commercial and consumer. Commercial litigation financing, also referred to as a lawsuit loan or settlement finance, is an unregulated industry that usually lends cash to commercial victims of personal injury lawsuits before their lawsuits settle. Commercial victims may have been severely injured due to the negligence of another business or organization. Commercial litigation funding can advance cash to plaintiffs in a civil suit in exchange for the promise to repay the principal and interest within a predefined time period.
Consumer litigation financing is often referred to as “settlement advance” or “advance deposit.” It differs from commercial funding in that plaintiffs are not typically asked to sign a contract or commit to a certain amount of money. Settlement advances are available to victims of personal injuries who have not been able to obtain any form of commercial insurance or other lawsuit funding. Unlike commercial lawsuit funding advance companies, consumers do not need to be protected by any form of business contract before receiving settlement advances. Settlement advances are typically non-recourse (the plaintiff does not need to recover anything if he loses the case) and are accessible for a pre-determined period of time, usually one year. Visit here to discover more about this service.
One of the most widely used forms of lawsuit funding is the “risk-fees.” risk-fee loans are based on the value of the settlement advance and in turn are calculated based on the potential value of the underlying settlement or claim. The risk-fee loan is not reliant on plaintiffs credit or ability to repay. Instead, all plaintiffs are offered loans without any credit check, financial guarantees, or collateral.
Another popular pre-settlement cash advance is the “pro se” funding option. This option allows a plaintiff to apply for funding without being involved with a lawsuit. In many states, this type of funding is not allowed. However, many plaintiff attorneys choose to use this option to raise the funds they need to hire professional attorneys.
If you are involved in an accident or have sustained personal injuries that require you to seek monetary compensation, it is important to contact a reputed lawsuit funding company to discuss your case. A reputed lawsuit funding company will be able to provide you with the funds you need in order to file your lawsuit. You will also be able to receive peace of mind, as your lawsuit will be completely paid for once your attorney receives his/her payment from the funding company. With today’s economic crisis, more people are choosing to pursue their legal remedies through the help of a lawsuit funding company.
You can get more enlightened on this topic by reading here: https://en.wikipedia.org/wiki/Lawsuit.