Various Forms of Litigation Financing

26 Dec

Litigation finance is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding for concluding the case when they will receive their share of the settlement or verdict.  The main role of litigation financing companies is to fund the plaintiffs in the case instead of giving them a loan.  This finance is not based on a plaintiff's previous credit or bankruptcy status.

The litigation finance companies at charge interest and fees differently.  It is true to say that these litigation finance companies assume a lot of risk due to their investment in the lawsuit as opposed to investing in the plaintiff.  There are some lawsuits that are not resolved successfully in spite of how strong they are.  For this reason, the cases that are successfully resolved have high-interest rates so that the funding company can balance that money with that of the cases that have not been resolved successfully.  There are also other litigation finance companies that use multipliers instead of interest rates.

If you seek the services of litigation financing companies; you will not struggle in any way to find financial resources to help you fight the case.  Any person who lacks financial capability id allowed to go for this financial assistance.  Generally, lawyers are not allowed to provide means to the clients.  However, the advocates are not prevented from telling the plaintiffs the various litigation financing options they can check out.  Plaintiffs have several funding options they can seek financial assistance from.

The plaintiffs funding is one of the available options.  In this type of funding, no money is paid back if the case is not resolved successfully.  This litigation finance is like a debt and attracts high-interest rates.  The funding company only takes away a certain percentage of the amount paid after the case has been resolved.

The other type of litigation finance 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.. When you get the post-settlement financing, you are expected to pay back the interest rates or a portion of the settlement in case the case is successful.  Read more claims about litigation financing at

If you are an injury victim, you are qualified for the financial assistance from these companies.  The other option is the attorney litigation funding.  You can either pay or not pay after the case has been resolved successfully.

Appellate financing is also offered by the funding companies.  It is often offered on a recourse basis to plaintiffs.

There are very many plaintiffs that rush to litigation finance as the answer to their current cash flow problems without completely understanding the facts behind litigation funding.  As a plaintiff, it is always a good idea to choose a funding company with a good image.

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