When you begin looking at lawsuit funding as an option you will probably have questions regarding the process and exactly how it works. LawLeaf, a leader in settlement funding, understands that getting an advance against your lawsuit can be as stressful as the lawsuit itself. We do our best in providing clients with information upfront to help them better understand the process of obtaining an advance against their claim. Like many of our clients, we share the same expectations; faster turnarounds and better rates.
In this article we will better explain lawsuit funding and how it works. Lawsuit funding is used by plaintiffs that have pending or already settled cases. Lawsuit funding is a cash advance given by a hedge fund or private investor with the understanding that if the case is successful, you will pay back the advance with interest. Because settlement funding is non-recourse, you can only be eligible if you have the representation of an attorney.
There are many different terms that describe lawsuit funding. You may be familiar with the terms pre settlement funding, litigation financing, lawsuit cash advance, settlement funding and even a lawsuit loan. The fact is all these terms describe the process of borrowing money on a contingency fee basis against a lawsuit.
Settlement funding is based upon the strength of a case. The investor or fund will evaluate a case and provide funding based upon the possibility of a successful outcome. If an investor decides to provide an advance against the lawsuit, the plaintiff does not pay back the advance if there is no recovery from the case (non recourse). When applying for settlement funding a lender is only interested in the actual case and not your credit or employment status. Quite frankly those individuals that are applying for settlement funding are often unemployed and have maxed out their credit cards.
When applying for settlement funding you should consider working with a company like LawLeaf. There are many different companies that take on different cases and charge different fees and interest rates. While lawsuit funding is solely based upon risk, some companies will evaluate a claim differently than others based upon the underwriter's comfort level. There are some companies that provide commercial litigation financing and others that will review personal injury related claims. While the majority of companies provide catastrophic injury advances, very few are interested in soft tissue claims. If an underwriter reviews an application and determines you are not qualified to receive an advance based upon their criteria you will have to start the process over again. At LawLeaf we can work with clients that need funding against commercial litigation lawsuits, catastrophic injury and soft tissue claims.
Equally important is the amount on the advance. Each hedge fund is set-up differently and the amount of money they will advance on a single case can vary. A company typically has a ceiling on the amount of money they would be willing to advance on a single case. The ceiling could be several thousands to several millions. At LawLeaf we can provide lawsuit funding for clients interested in $500.00 and others that are interested in millions. Our ability to secure such a broad range of funding is what makes LawLeaf so unique.
When applying for funding with LawLeaf you can be sure we are interested in providing you with the best rates available to you. We have experience in funding directly as well as providing our clients with those funds that best match their funding criteria. We are known for streamlining the process because we have experience in evaluating and quickly determining which funding sources give our clients the best chance for an approval at the best rate.
The process begins with an application provided online or through a phone conversation. Once a representative or partner has been provided the necessary information we will immediately contact your attorney for a case document request. When the attorney sends us the necessary information we immediately have it in front of an underwriter. The underwriting process can take as little as an hour to several days depending upon the information provided. There are cases in which the underwriter will need additional information that was not included in the document request. On average the process takes around a day and in some cases LawLeaf has received approvals within an hour of receiving the necessary documents from the attorney.
If you are approved for settlement funding, a written agreement will be sent to the attorney. The agreement should be signed by the plaintiff and attorney and immediately sent back to the fund. Once the agreement is received funds will be immediately released.
If you are considering settlement funding against your claim, begin by contacting LawLeaf today.
We provide settlement funding services for the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C. |
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