Litigation funding is legal help in the form of a loan, which is only repayable if you win your case. This is called non-recourse lending, recourse is a legal term which means you are entitled to claim your money back, therefore non-recourse financiers are not eligible to ask for repayments if your client loses their case. This puts the financial risk with the financier and not the plaintiff.
To make sure they will see a return on their investment, these pre-settlement loan companies uphold certain criteria when issuing loans to candidates.
Here are 3 tips to secure the capital needed:
Counsel Reputation and History
Pre-settlement loan companies require a thorough fact-check before issuing a plaintiff with a cash advance. This means that having a track record is advantageous as it provides an extensive view of your abilities and also the strength of your case. Necessary factual background checking is an important step in securing litigation funding. Legal loan companies extensively look at this and other aspects of the case to establish whether it is strong enough to be won.
Therefore having a good track record builds your credibility and trust with pre-settlement loan companies.
Meticulous Documentation of Evidence
The stronger the evidence, the stronger the case. Therefore the damages incurred should be well documented as this will be used as evidence to support your case. Medical reports, extra bills, bank statements, email communication, receipts, phone bills, call logs, a modest budget, household expenses, and income before and after the injury are a few examples of what your client might need to show to establish the extent of the damages they have incurred.
These will be used as evidence to assess the financial loss. It should be noted that the total sum of the plaintiff’s damages should be high enough to cover the litigation financier’s principal investment and interest, leaving most of the settlement for the plaintiff. A well established legal funding company will fund up to $2 million dollars for a settlement of $20 million.
Risk Profile
Legal funding companies look at the risk profile of your case when assessing a lawsuit for funding. The stronger the risk profile the stronger your case, thus a higher likelihood of your lawsuit winning.
A pre-settlement loan company will assess a risk profile by looking at specific characteristics. They will look at the validity and strength of the legal theory, this means the set of laws that will be used to argue your case. The stronger your legal theory, the stronger your lawsuit. Where multiple viable legal theories can be approached to argue your case, the better. It is also favorable if the legal theories have received good support and have been tested within the legal system. Looking at past performances, if it is obvious that your client incurred damages caused by the injury or incident, this will also strengthen your case.
These are key characteristics that a litigation financier will look at when assessing your client for a cash advance. Are you currently leading a lawsuit and are in need of a pre-settlement loan?
Get your client a cash advance in 24-hours, after a quick eligibility check by Tribeca Lawsuit Loans.
Call now on 866-388-2288 or fill out the short online form.