Get your Pre-Settlement Cash Advance against Your Pending Lawsuit
Lawsuit Funding — also known as litigation finance, settlement advances, lawsuit advances, pre settlement funding, post settlement funding, cash advance, etc. — is the process of providing cash advances to clients and attorneys based solely on the merits of a pending case or settlement.
Lawsuit settlement funding advances are cash advances on pending litigation. The funding company can only look to the lawsuit itself for repayment. It is not a loan. It is simply an assignment of a portion of the client or attorney’s interest in the anticipated recovery of the lawsuit. If there is no recovery, there is no re-payment. Is it ethical for attorneys to refer their clients for pre-settlement advances? Yes. As long as:
• The referring attorney has no financial interest in the lawsuit funding company.
• The referring attorney does not profit from the transaction.
• The lawsuit funding company is not involved in the litigation of the pending lawsuit.
Because of the quantity of cases and the bureaucracy of our current court system, the legal funding industry evolved in the 1990’s. As time has gone on, this industry has not only stood the test of time, but has also been praised as its own industry within an industry. In fact, the industry has become so prevalent to the system that it is being lauded by some legal minds as a valuable service which balances the scales between plaintiffs and the system.
Institutional funding groups give plaintiffs a viable option with the non-recourse advance, which is more expensive than traditional lending facilities, but offers a no risk guaranty to the plaintiff.
The advance provides a different service for each and every plaintiff. For some it’s the ability to remain patient until their case achieves maximum value, for others it’s a bridge for vital expenses just to maintain their monthly expenses, and for others still it provides an opportunity to get something today for a case that could ultimately end up with no compensation whatsoever. Whatever the use may be, the ultimate choice lies with the consumer, and in any industry that simply is a positive.
Each year approximately 3 million new lawsuits are filed. Of course many of the active cases will be adjudicated, but not at the same rate as new lawsuits are filed. In essence, the number of active lawsuit cash in the system will continue to grow on an annual basis.
This simple fact creates an endless supply of new opportunities for an industry that is in its infantile stages. In fact it is estimated that there are less than 1,500 total industry personnel working in the legal funding industry and that almost 80% of the active plaintiffs in lawsuits don’t even know that these services exist. One could reason that over 8 million people are available for advance funding services today, with only 1,500 such people to contact or service them. This presents a positive supply to demand ratio in the market place.
If you have a pending lawsuit and have financial needs such as medical bills, repairs, or just are in a spot you need funds now, lawsuit funding provides a fast, efficient and cost effective way to get the cash you need now while you wait for the court system to run its course.