Litigation financing is a funding service that offers victims in the midst of a lawsuit an advanced payment on their expected settlement amount. Victims often wait months and even years before they receive their settlements; in the meantime bills, medical expenses, and other financial commitments are adding up quickly. Many times the victim’s case is drawn out intentionally for a long period of time by the defense so that the victim is likely to settle their case for a lesser amount than it is worth just to get their cash sooner.

Litigation financing is not a typical loan that most people associate with a bank. When a lender gets a loan from a bank they must have some sort of collateral or security that is worth more than the loan amount. With a lawsuit cash advance, the collateral is the anticipated settlement, so the victim does not have to put up their personal property as a guarantee. Another major difference between litigation financing and a traditional loan is that the money does not have to be paid back unless the victim wins their case, in which case the victim will pay back the original cash advance with interest.

Being approved for litigation funding is easier than most plaintiffs think; there are a few short steps required to complete the application process. The steps include:

• Filling out a short application that describes their case, personal information and attorney information
• Authorizing the funding company to view their information
• Authorizing their attorney to release the details of the case to the case funding company

After the case funding company receives this information they will quickly review it for approval. They will then come up with an estimated settlement amount and an estimated settlement date. Once complete the litigation financing company will contact the victim and offer them a loan amount that will cover their expenses. If the applicant approves the amount and the fees, the loan is processed and the plaintiff receives their loan. It is important to note that many of these companies will try to offer the plaintiff an amount that far surpasses their actual need. Choosing a case funding company with a good reputation and track record is recommended as many of these companies will try to “over lend” the victim to drop more money to the bottom line.

For more information and a recommendation on a reputable case funding company, enter your name and phone number in the form on the right, and someone will contact you shortly.

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