Litigation Capital - Understanding Various Sources
Every legal case, no matter how big it has become today, needs funds and that too an incessant flow of cash to keep them alive in the courts. The legal fees and charges alone are big enough to drill a massive hole in the pockets of the plaintiff. If you add the attorney’s fees for his/her services, you will find that any legal battle will be simply out of the budget of the common man.
Every plaintiff HAS faced the problem of arranging for funds to get the ball rolling. Litigation capital is one of the most basic needs that any case needs to ensure that it does not end up dying in the court. But as it often happens, getting this initial boost happens to be the hardest part.
Now if you are lucky and you have a ton of cash lying around, whether left to you by a distant relative or saved by you from your past incomes, you can go ahead with your case without any issues. But if this is not the situation, the problem that arises is quite difficult to manage. Any pending litigation will have absolutely no sources of funding. Your friends and family will keep away, saving themselves from having to help you out for defending a legal case. What guarantee is there that you will win in the end! Banks will shy away too as there are no operations in progress and no past incomes to show as proof of your repayment capability or profitability or even your chances of winning the case. So who would you convince to lend you some money to keep the case running?
You have two options here..
You can either seek out an angel investor who is willing to offer you his money to file your case in return for a share in the settlement money. Or else, you can go for litigation funding, a format that allows you to retain the settlement amount and profits but has you paying interest to the lender. Litigation financing providers can be of any kind – banks or private financial institutions and each of them have their own interest rates and repayment conditions. But the best part is, no matter which source you choose for your loan, you will get to keep your rightful ownership of the settlement money intact.
Litigation financiers generally offer easy repayment terms that begins when the case is moving towards a close. The interest amount charged is also comparable to other types of loans that you can avail from the market. But what makes these loans different is the fact that they are specifically designed with the needs of the plaintiff in mind. The best part is the fast disbursement of the loan money. Some litigation finance companies provide the money to the plaintiff in as less as seven days! This speedy process is a godsend for people looking for fast access to funds to keep their cases going.
So choose whichever financing options suit you most and get that case rolling!
For more information about litigation funding solutions, visit NLFunding.com.
About The Author
Sydney Banks is a litigation funding expert who openly advocates the many advantages that this option brings for plaintiffs in need of intermittent financial support during the course of cases. She recommends NLFunding.com as the best and most trusted provider of such products in the US.
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