Lawsuit Funding: What Is It?
Lawsuit funding for plaintiffs is something many people are unaware of or not informed of. That us, until the time comes that they need funding for a legal case or settlement. The purpose of this article is to clearly define what litigation funding is as well as the business behind it. The lending, application process and much more will be discussed.
More and more people are looking to lawsuit funding and other means of litigation support now more than ever before. An entire sector of the legal industry that has been virtually unknown, is becoming more important to understand. As we continue to become more savvy with technology, things become more transparent.
Let’s begin by clearly defining what it is. Litigation funding or other forms of lawsuit funding for plaintiffs is the providing of financial resources, primarily to a plaintiff, but it can also be for lawyers and law firms. The purpose is to help them afford legal expenses and the pursuit of a settlement or trial.
What Else You Should Know
Lenders and funders that provide these funds often have a motive in mind, which is arguably the most important thing to note when speaking about this topic. Certainly, funding options like lawsuit loans have their benefits. But, you must know what you are getting into and choose carefully when deciding a lender to work with. We recommend you read through our recommended list of legal funding firms.
For plaintiffs in need of funds for their legal troubles, these loans seem like a great solution. In many cases they are, but it’s important to consider everything. Researching and learning about the process is a great first step. The first thing to know, is that this is a loan. You are applying for a loan from a lender. That means, you need to understand the interest rates involved. Be straightforward and to the point, by simply asking a lender what they charge or what their rate is. You should expect an equally upfront and clear response from them, any hesitation to answer your question should lead you to seek out another lender.
Next, when you are involved in a pending lawsuit and need funding, speak with your attorney. They can share some insights with you as well as provide any necessary documentation that the lender may need or ask for. This can also help speed up the process and get you the funds you need sooner. Another important thing to consider is the overall price you are willing to pay. You’ve done your research and have found a good, reliable lender and your lawyer agrees. Now, consider the expenses of working with that lender, look at what fees there are and just how much they want from your settlement. It may not be worth it to go with a lender that is on the expensive side.
Conclusion: A few extra pending lawsuit loan tips
Remember, that lenders work and function similarly to how venture capitalists do. They decide on the lawsuits and cases they want to work with, based on the potential returns they see. Something else to consider is to talk to your attorney about the settlement and what to expect. This can create clarity for you and the lending company.
Lastly, try and get a good idea of what funds you actually need. It is possible that you will only need a certain amount, maybe even the minimum amount. Don’t take more than you need and if you choose the right lender, they won’t pressure you into taking more either. It comes down to being diligent in your research and working collaboratively with your attorney and the lender. If you do all of that, it’s smooth sailing. Be sure to check out Thrivest Link and see how we can help with your legal funding needs!