Is your business a plaintiff in a lawsuit and you need more money to continue your case? A litigation loan may be for you. Since this service has only been available for a few years now, most attorneys and very few businesspersons are aware that they can receive a cash advance to see their way through a pending lawsuit.
What is a litigation loan, you ask? When a lawsuit funding company provides money to a lawsuit plaintiff to advance the favorable outcome of the case, this is called a litigation loan. Litigation loan – often referred as lawsuit loan, litigation financing, and legal finance – is a relatively new segment of the cash flow industry. However, it is growing by leap and bounds.
Based upon the strength of your lawsuit, the lawsuit funding company will provide an advance (normally, in the range of 10-15%) on the amount of money you are expected to receive, should you win your case.
This advance is “non-recourse”. This means, that should you not win your case, you do not owe the funding company any money in return. As you have guessed, a litigation loan is not a typical loan because the money does not have to be paid back, unless you win or settle your case.
Why Litigation Loans? It levels the lawsuit playing field. By now, you know the drill: lawsuit defendants (insurance companies, large manufacturers, banks, etc) have deep pockets. Other businesses, perhaps like yours, may not be as flush with cash. These large companies tend to string the process out, hoping that businesspersons like you will run out of money and quickly settle the case for next to nothing.
A lawsuit loan allows businesspersons, like you, who are lawsuit plaintiffs, to hire expert witnesses, meet payroll, hire additional case personnel, keep your business operating, etc. The problem is: Most lawsuit plaintiffs do not know they can obtain a lawsuit loan. As a businessperson, you can qualify for funding ranging from $250 to over $1M for an individual case and up to $10M for a commercial case.
How Do Litigation Loans Work? It is simple and straightforward: You fill out an application and submit it to the litigation funding company. The company contacts you and your lawyer to ask background questions about the case. The funding company then sends you a contract for signature. After you sign, the company transfers the money into your bank account or overnights the funds directly to you (whichever you choose).
Advantages of Litigation Loans. They offer many advantages: it is confidential, prompt and discreet; there is no risk to you, the businessperson; applications are free, and without obligation; there are no upfront or processing fees; there are no credit checks; bad credit – even no credit – is okay; the underwriting process is quick; you can have money in hand the very same day; funds can be used for any purpose; you pay back the advance, only if you win – no payment if you lose the case; you do not need your attorney’s approval; and its available for all types of civil and commercial lawsuits.
Who is eligible for a litigation loan? If you are involved in any type of lawsuit, such as: personal injury, product liability, auto accident, patent infringement, malpractice (medical, legal, construction), employment discrimination, fraud, breach of contract, Mesothelioma, negligence, workers compensation, class action, civil rights, whistle blower (qui tam), workers compensation (in many states), wrongful death, commercial litigation etc.; and you are represented by a lawyer, you may qualify.
Spread the word! You can get a litigation loan to advance your lawsuit. If you have a business associates involved in a lawsuit, let them know about this relatively new service.
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