Legal Funding is somehow a new kind of financial solution that can be used by plaintiffs who are involved in ongoing litigation. Not only is this, legal funding is also helpful for the attorneys who work on a contingency fee basis while representing the plaintiff in the court.
Legal Funding Definition
Going by the Definition suggested by the experts of Legal Funding, it is a form of non-recourse financial help which plaintiff and law firms can acquire in due process of settlement. Most of the time a third-party lending firm offers cash advances to the plaintiff in return of a minimal portion of the future compensation, which will be awarded to the plaintiff once they win the legal battle. Funding Companies like America Lawsuit Loans offers risk-free settlement loans to the plaintiff since the money which they handover to the plaintiff comes with no win-no repay scenario. If a plaintiff wins the battle then only they have to repay the loan amount, or else they go free with no-obligation of repaying the money back if the loses the case. Legal Funding For Attorney Now coming to the other segment where we told that Legal Funding is also the saviour of Attorneys and Law Firms. If an attorney is working on a contingency fee basis then they are not held responsible to repay the funds given by some third-party litigation funding company. Since we are terming any amount in legal funding as “advance”, so never confuse it with the term “loan”. Because in the loan the repayment is necessary whereas in advance given by lawsuit funding company there is no surety whether the fund can be repaid. Hence legal funding is somehow costly compared to other kinds of funding like personal loans, credit cards, or bank loans.
Why Legal Funding is the Best Financial Solution for Plaintiff?
As we mentioned earlier that legal funding could be a little expensive in comparison to a credit line and bank loans. Then also why you must consider Legal Funding ahead of Bank Loans during lawsuits? The simple answer to the query will be no-obligation and availability. Since Personal Injury Lawsuit Loans comes with very little obligation, the demand for paperwork is very minimal, as well as the funding company will never ask for any collateral, but on the contrary, the bank loans generally ask for collaterals. Moreover, in case you choose a financial solution in the form of bank loans for your lawsuit, and if you lose the lawsuit then you have to repay the amount with interest to the bank at all cost or else they will recover the loan amount which they offer by selling your collateral. But legal funding has no such trouble if you lose the litigation you go free with no-obligations. We are concluding this great information on Legal Funding with a suggestion that, if you are a plaintiff involved in a pending lawsuit, fighting for compensation, or waiting for the settlement to get over, legal funding is the best financial solution you can have if you are facing cash crunches due to increasing bills.