A relatively new source of financing is now available for both individuals and business owners. It is called lawsuit financing, often referred to as lawsuit loans or lawsuit funding. They are not truly loans, however, because the money does not have to be paid back unless the case is won. Lawsuit loans are thus also referred to as "no risk loans."
Frequently, claimants have missed work or no longer have the job at all, and can no longer meet their rent, automobile payments, or other life expenses. In the past, these claimants have needed to accept lesser settlement amounts due to pressing financial difficulties. Now, clients can sustain their personal lives and give the attorney the necessary time to achieve the full value of the case with the help of lawsuit financing. Lawsuit financing companies usually do not require credit checks, monthly payments, notes, or any other security.
Often times, individual claimants and commercial litigants require financial loan assistance prior to settlement or judgment. Types of cases that qualify include personal injury such as automobile accidents, malpractice, wrongful termination, discrimination, harassment, and much more. Lawsuit financing is available in most states and can be a very beneficial source of funds.
There are a handful of companies that provide lawsuit funding. For more information on these lawsuit loan companies please visit http://www.fredcoutts.com/indexlawsuit.htm. Each company provides funding that is specific to their criteria. All lawsuit-funding companies will provide funding for personal injury lawsuits. But there are hardly any that will fund commercial and other non- personal injury lawsuit cases.
Rates will vary depending upon the risk. Lawsuit funding companies will generally finance up to 15% of the potential settlement value. For example, if the case has a potential value of $100,000, the client can expect a funding offer of $10,000 to $15,000. Lawsuit funding companies carefully analyze the cases they choose to fund. They must be impressed with the lawyer as well as the potential settlement value.