Lawsuit funding is becoming more popular each day. The option to get advanced cash seems to be chosen by many people involved in lawsuit cases for crime, accidents, and injuries. Many have approved the idea of advanced settlement. In fact, this option has been widely used for decades now. Lawsuit funding is to help an individual settle the financial aspect while the lawsuit is being processed. This finance includes medical health and regular bills. It does give an opportunity to claim right now while maintaining balanced cash flows. Here are the pros and cons of lawsuit funding.
• Get access to the funds easily
The settlement may not have been made by the court but you can get the fresh cash even before the court starts. Your lawyer will provide legal documents that benefit for the advance. Once your case is considered, you can get the money immediately. It is not a loan; hence the company does not look at your bad debt or credit score. Instead, they look at your case and see if you have the chance to win it. Hence, it has nothing to do with the history of your financial report. If you are likely to win, then the chance to be granted for cash is bigger.
• Larger amount
Lawsuit funding enables you to get up to large amounts of funding. Unlike waiting for the defendant to settle your claim in an extensive period of time, you can obtain various amounts through lawsuit funding. This way, you can continue with the case while it is investigated and allow yourself to finance yourself until the legal system concludes your case. This way, you don’t have to accept the money from a defendant that could be much less than you deserve.
• There are also negative impacts of lawsuit funding. Not everyone is recommended for this type of funding. If you don’t have a chance to win, then you should not opt for lawsuit funding because most of the time, the companies will not fund you.. You can only pay back the fund resource if you win the case. Hence, if your chance in winning is small, you may not get the advanced cash.
• There is an interest rate that you need to pay to the company who gives you the advanced cash. And because the company needs to stay in the business, they make money through your payment with the interests. The amount that you need to pay is usually larger than the first time you receive the cash. This is due to the compiling of interest. The longer the court holds your case, the higher your settlement.
The hidden cost
There are many lenders who claim to be a fast cash provider for those with lawsuit issues. However, some of these companies want you to pay back even when you don’t win the case. In that scenario, that is considered a loan and not legal funding. As you may know, loans are required to be paid back regardless of the situation or circumstance. On the other hand legal funding does not get repaid upon unsuccessful litigation of your case.
Pegasus Legal Funding LLC
Pegasus Funding is a lawsuit funding that works using a non-recourse policy. The cash advance is the one you can obtain without worrying that you cannot pay it. There will be no upfront payment to finish your case. Pegasus rate is quite lower than the others. They don’t charge brokers fees when you contact us directly.
Pegasus is a member of the American Legal Finance Association that follows strict rules and regulations that can protect you through the court systems and provide you with the legal funding you are entitled to receive.
Call us: 855-FUND-YOU / 855-386-3968
.:About the author:.
James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible