Factors which determine the amount of funding you get
A law suit cash advance or funding is pretty advantageous to the borrower. The person does not need to wait till the end of the verdict to receive money. He gets liquid cash through this form of funding, with the only stipulation that he must return it after winning his case. And in the contingency of his losing the case, he wouldn’t be required to return the money.
But the amount granted to you will depend on a number of factors. Here are the major ones:
i. The strength of your case: One of the major factors that determine the amount of law suit funding is the strength of your case. If your chances of winning are good, then you get a higher sum! In fact, to an extent, it is directly related to your winning probability. Higher the probability of your victory, higher is the money! On the other hand, if the chances are very less, then most lenders would shy away from granting the pre-settlement funding.
ii. The extent of injury: If the plaintiff’s injuries are extensive, then the companies would be ready to grant higher sum. This is because, your medical bills would be higher. Besides, the court is more likely to allow you compensation. So, the funders are assured that you would be able to repay the money.
iii. The extent of lost wages: Owing to personal injuries or incapacities, if you have lost your wage or have become permanently incapable to work further, then the amount of law suit cash advance will depend heavily on the extent of your monetary loss.
iv. Jurisdiction: The state and the jurisdiction in which you suffered injuries also play a big hand in determination of the amount of legal funding. Since, different state laws are different, so lenders take this factor into consideration as well.
v. Liability insurance: If the defendant is covered by liability insurance, then it will have a major say in the money allotted to you under law suit cash advance.
vi. Other factors: Depending on your individual case, several other factors may play a deciding role in the matter
.: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