Various Forms of Litigation Financing
Litigation financing is meant for assisting the plaintiffs who have a lawsuit but lack enough financial support to reach the conclusion of the case and get their settlement. Litigation companies do not give loans to the plaintiffs but are mainly concerned with investing in the lawsuit. This finance is not based on a plaintiff’s previous credit or bankruptcy status.
The interest rates and fees charged by different funding companies vary. It goes without saying that the litigation funding companies take a lot of risks when they choose to invest in the lawsuit instead of giving the plaintiff a loan. There are some lawsuits that are not resolved successfully in spite of how strong they are. Due to the risks involved, these litigation finance companies charge high-interest rates on the cases that are successful so that they can make up for the cases that have been unsuccessful. It is possible to find funding companies that consider multipliers to be better than the interest rates.
If you seek the services of financial litigation companies; you will not struggle in any way to find financial resources to help you fight the case. If you have a lawsuit, and you do not have the financial resources to settle the case, you are qualified for the funding. Generally, lawyers are not allowed to provide means to the clients. In spite of that, the advocate has a right to inform you about the best financing option that you can depend on. The litigation financing options available are several.
The first type is the plaintiff’s funding. This means that the plaintiff does not have to repay the loan if the case is lost. When the plaintiff is given this loan, they are expected to pay high rates if they win the case. The amount received from the plaintiffs funding is limited to only a certain percent of the expected settlement amount.
Another financial option is the post-settlement financing. In case you are not sure of the time you will receive the settlement, this is the best financial option you can choose.. This financing is offered on a non-recourse basis.
If you are an injury victim, you are qualified for the financial assistance from these companies. The other option is the attorney litigation funding. This financing is offered on both recourse and non-recourse basis.
Appellate financing provides the means to attorneys to pursue a legal case. It is often offered on a recourse basis to plaintiffs.
You should know all the facts that concern litigation financing before you use it. It is good to research on the company before you get any funding from them.