Pegasus Legal Funding provides non-recourse cash advances to personal injury plaintiffs. Non-recourse lawsuit funding means that if there is no recovery on the lawsuit the legal funding company loses their investment. Non-recourse lawsuit funding is not near as risky for personal injuries victims as many of the other options available for personal injury victims.
Typically, when a person attempts to borrow money they have to put some type of collateral down in order to be approved. For instance, if a personal applies for a mortgage, the bank will use the house as the collateral. If a person tries to get a loan for a new car, the car will be the collateral. Most traditional cash advance companies require an individual to put down a title for their car or some other item of value in order to get the cash advance.
On the same note, when a person applies for lawsuit funding, the legal funding company will use the lawsuit as collateral. However, there is a clear benefit to having a lawsuit as collateral instead of some type of physical property. A personal injury lawsuit cannot actually be taken away from one person and given to another. Instead, the legal funding company simply receives the amount owed out of the total settlement amount. However, if the case turns out not to have been worth the Legal funding, the person will not have to pay back the legal funding company. So, if there is no settlement the person gets to keep the money from the legal funding company and does not have to pay anything back.
.:About the author:.
Max Alperovich is a Partner and co-founder of Pegasus Legal Funding, LLC. Max was an early adopter and identified third-party litigation funding as a mutually beneficial endeavor for both client and funder relationships.