Small law firms are often involved in complex litigation that can take years to work out in court. While many people don’t know about them, these private public interest law firms and plaintiffs do the heavy lifting of defending our rights in court in many civil rights and public interest cases.
However, many of these practices are relatively small and underfunded. Complex litigation funding can provide these limited teams with the resources they need to take on some high-profile, life-changing cases. Legal funding can give small firms even footing.
What Is Litigation Funding?
Litigation funding, also known as a personal injury cash advance, is financial support to cover litigation costs in the form of a non-recourse loan. The loan doesn’t have to be repaid with your own assets and is actually considered an investment by the IRS. The pre-settlement loan company that provides the funding will only see a return when you reach a settlement.
This non-recourse structure literally means that in the event you do not win your case, the client will not have to repay the financier. As your potential settlement is the collateral for the funding, you have nothing to repay if you lose. These pre-settlement loan companies do not get involved in the legal proceedings, but essentially cover all your litigation costs until the end of the trial.
Why Do You Need Litigation Funding?
The lengthy process of complex litigation usually takes years before the settlement is reached. The process is long because complicated lawsuits are not straightforward, like real estate or commercial law cases. These cases involve many parties over potentially multiple jurisdictions fighting for a substantial amount of money.
These cases can take longer to litigate than anticipated, which can have an impact on your firm’s financial state. It is important to plan ahead and make sure your litigation does not come to an early end because of financial limitations. This is where a legal funding company will step with litigation funding to support you all the way.
How Do They Assess My Case for Litigation Funding?
Pre-settlement loan companies want to secure a good investment, thus they will be looking at criteria that will influence the risk profile of the case. First, there should be solid evidence backing up the legal case, as legal lending companies do not want a lawsuit that ends up in “he-said-she-said” scenarios.
Second, the legal theory used to argue the case should be sound and grounded in precedent. Preferably, alternative legal theories will be available as well. If your firm has a good track record of winning cases, you’ll have a better ability of gaining the trust of legal funding companies.
A reputable legal funding company will assess each case individually to give your small law firm the litigation funding it needs to continue fighting the legal battle for your client.
Where Does the Money Come From?
Dedicated litigation funders are mostly private entities along with a handful of publicly-listed companies. Hedge funds or asset management companies with a diverse investment strategy approach are also known to fund litigation procedures. These are known as multi-strategy funders and they have a portfolio of cases which can yield a return for their investors.
Another class of creditors is known as ad-hoc funders. They do not advertise, but every so often will take on a litigation lawsuit. These ad-hoc funders could be hedge funds, wealthy families, or another type of asset management firm.
How Fast Can I Get Complex Litigation Funding?
Depending on the details of your case and which legal funding company you work with, you could receive complex litigation funding in just 24 hours. This can be crucial if you have immediate pending expenses, like payroll or fees that need to be paid now. If you’re potentially facing years of litigation, the last thing you need is to wait even longer for your money.
Get Complex Litigation Funding Today
Small law firms can fund complex litigation with a complex litigation loan from pre-settlement financiers like Tribeca Lawsuit Loans. We have years of experience in funding complex litigations and can deal with legal funding over $2 million. Small law firms facing a complex litigation lawsuit who do not have the funds to continue can get a cash advance within 24 hours.
Contact us today to learn more about our offerings and to submit your application for complex litigation funding. We’ve disbursed over $45 million to our clients over the years and can provide you with the funding necessary to finish your case. At Tribeca Lawsuit Loans, we can offer you the resources you need to complete the fight for justice for your clients.