Types of Litigation Financing
Litigate finance refers to the prior cash payment given to plaintiffs who have filed a case but do not have enough money to settle the case. Litigation companies do not give loans to the plaintiffs but are mainly concerned with investing in the lawsuit. The funding companies are not usually concerned with the credit position of the plaintiff.
The interest rates charged by different litigation companies for the financial assistance are different. It goes without saying that the litigation funding companies take a lot of risks when they choose to invest in the lawsuit instead of giving the plaintiff a loan. This is because it is possible for a good case to be thrown out. 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. Some funding companies prefer to use multipliers overcharging interest rates for their financial assistance.
If you seek the services of financial litigation companies; you will not struggle in any way to find financial resources to help you fight the case. If you have a lawsuit, and you do not have the financial resources to settle the case, you are qualified for the funding. As long as a person is a lawyer who is involved in your case, they are not allowed to provide the clients with the means to get the case settled. However, the advocates are not prevented from telling the plaintiffs the various litigation financing options they can check out. The litigation financing options available are several.
The first type is the plaintiff’s funding. This means that the plaintiff does not have to repay the loan if the case is lost. The plaintiff is required to pay high rates if they win the case. The funding company only takes away a certain percentage of the amount paid after the case has been resolved.
Another financial option 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.
If you are an injury victim, you are qualified for the financial assistance from these companies. Attorney litigation financing is also another financial choice. 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.
You should know all the facts that concern litigation financing before you use it. As a plaintiff, it is always a good idea to choose a funding company with a good image.