The peculiar aspect of the pre-settlement cash advance is that there is benefit for the funding firm, the attorney and the victim too, in this financial transaction. All the three parties that are signing the funding contract are completely benefited in this deal. Legal funding help the plaintiffs who are in desperate need for money. Hence they do not mind paying something in addition to what they get as emergency financial assistance. In fact, they are more than ready to take more such pre-settlement advances, if awarded.
Yet, only 15% of the evaluated settlement amount expected can be awarded to the plaintiffs in most cases. Legal finance firms have their own set of rules and regulations of the unique kind as per their comfort as there is huge risk associated towards lending money in this format. If the case is lost then there is nothing that is to be paid by the plaintiff to the legal funding firm. It is why the presettlement non-recourse cash advances are restricted to just about 10 – 15% at the most.
Plaintiffs will find it to be ample amount to help meet their needs of the emergency kind far more readily. The minimum amount is about $500 and we have even funded Million dollar plus. You can get as lawsuit cash advance too, the outcome of the process is based on the details your case. Funding can be useful to pay your bills of variety kind, and you do not have to repay anything if you are losing the case in the court.
Secondly, from the attorney’s perspective, they are going to reap for their rewards as one time lump sum cash once the case is won in the court. They do not take a case on contingency basis if there is no big scope to win the case. Hence, they know they are going to make a lot of money out of it, in a short span of time, by doing some little formal paper work. Meanwhile the plaintiff can take care of the expenditure without settling for anything low by availing the presettlement funding.
Thirdly, the legal funding firm has underwriting officials that will look into the case in detail. Based upon their recommendation the approvals are made for offering presettlement loans to the plaintiffs. Moreover, the reputation of the attorney is checked and the documentation in detailed is expected from the attorney with signature, before issuing any funds. Hence, after making a thorough scrutiny presettlement loans are being awarded to the candidates who are eligible and do have ample scope to win the case in the courts of law for a big settlement to be done in a while. All until then the money that they shell out in the form of presettlement loans is accruing with good interests to be repaid soon. Hence, it is the benefit for the lending firm too.
Altogether it is a win-win situation for all the three parties involved in the financial transaction.
Non-recourse nature of the lawsuit cash advance is one valid point that is pretty attractive for the applicant. It is used for promoting the concept easily. However, it is important that the plaintiff should be aware of all the details completely right ahead of choosing to borrow money in this lawsuit loan amount format.
Lawsuit settlement amount that is offered by the legal funding agency is of the non-recourse nature. Conventional loans that are borrowed from the banks and other financial institutions are totally different from that of the settlement advance. You cannot get a loan from the bank just out of you lawsuit case filed in the court. On the contrary, here in the case of lawsuit settlement funding agencies. They treat your lawsuit case filed in the court, like a property. They attribute it to a non- hypothetical but well estimated value.
Based upon the estimate made, a part of that is issued as cash advance to the plaintiff. Even though it is done purely for commercial motives, in a safer manner, there is risk associated towards it for the funding agency. There is a lot of merit associated towards it for the plaintiff. Instant relief is something that comes in the form of lawsuit loan amount. They can clear the bills pertaining to the medical treatment for a speedy recovery. Once they are recovered completely and continue to do their routine job, then most of the financial issues can be tackled with a lot of ease.
Primary focus is to take care of the bills all until then. It can be children educational expenses too. You cannot stop them from going to school just because of the fact that you are injured. You cannot stop the family from eating some good food on a daily basis. You cannot escape from paying your bills associated towards mortgages, loans, property related bills, credit card bills, insurance, auto bills, monthly expenditure, living expenses of the other kind, and so on.
Special treatment for a speedy recovery may be one of the most wanted needs too. Lawsuit loan amount can help you do all of that and you have excess cash in hand to be used for other purposes too. Repayment guarantee is not asked by the funding agency. You can waive it all too. Yes, in case of losing the case you are not paying anything back to the funding agency.
Lawsuit funding amount, hence, is by all means different from the other conventional loans and it does a whole lot of favor for the plaintiff. All you need to know is just to check if you are eligible for one such a kind and avail lawsuit cash amount, immediately from a reliable funding agency. In order to it easily, you can get the assistance of your legal advisor. They can take care of the formalities and make you get the lawsuit loan amount at the earliest possible. The cash advance is usually provided in just a span of about 2-3 days with most of our clients.
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