Legal Funding Companies – All Your Questions About Them Answered
If you are a plaintiff who is engaged in an ongoing legal battle, managing finances is going to be one of the biggest challenges during the course of the proceedings. I mean it - this will be an even tougher job than trying to unearth the evidence that will prove your case in court! The reason? Legal battles happen to be a major financial drain and in most cases, particularly the ones involving personal injuries because in such cases, the plaintiffs are usually rendered incapable, whether temporarily or permanently, the make any income or do any work. This is where legal funding companies appear as life savers and provide the necessary financial assistance needed to make ends meet.
But before you file an application for such financial aid, it is important that you understand how legal funding companies work. In this article, we have listed the common FAQs that might pop into your mind about these lenders and how they offer their much needed help to keep your chances of winning in court alive.
Which types of cases are usually financed by legal funding companies?
These lenders do not have strict preference particular types of cases as such. As long as it is viable in court and has a reasonable chance of success at the time of settlement, the case will be financed by these companies. But it has been observed that most of the times, these cases pertain to personal injury claims. However, this is not an exhaustive definition and the cases financed by such lenders may also include auto accident, malpractice (medical, legal, construction), employment discrimination, fraud, product liability, breach of contract, Mesothelioma, negligence, workers compensation, civil rights, class action, patent infringement, whistle blower (qui tam), workers compensation (not in all states), wrongful death, commercial litigation and the like.
Why cannot I just approach a Bank for this loan?
First of all, you will have to understand that this transaction is not a loan; it is actually a non-recourse lawsuit cash advance on the future value of your case. This means that in case you are not successful at the end of your case proceedings, you will not owe anything to the legal funding company. The very nature of this transaction is therefore much more risky that what traditional financial institutions and banks are ready to venture into. There are of course, some institutions that have started taking initiatives in this field but even they have adopted a very conservative approach on these matters. In most cases, they grant loans to only those individuals who have a proven repayment capacity. However, if you go with a legal funding company, chances are you will not have to worry about these matters at all. These companies are ready to take the risk of investing in the interests of your case and will therefore offer you this cash advance without much hesitation. In the end, it is just a question of your convenience and easy terms of the loan.
Visit Nlfunding.com to know more about legal funding companies.
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.