There are a variety of different types of lawsuit funding in the legal arena. These types of lawsuit cash advances can consist of pre-settlement funding, structured settlements, commercial litigation and law firm loans. The difference between these types of funding is contingent upon each case.
Pre-settlement funding is typically a cash advance by a lender for a pending lawsuit case. These cases are almost always personal injury related cases. Personal injury related cases can include car accidents, slip & falls, medical malpractice, workers compensation, wrongful death and other catastrophic injuries. Lawsuit cash advances are determined by the strength of your case, because typically these types of loans are non-recourse loans. Non-recourse funding can be defined as lawsuit funding that you pay back only if you receive compensation from your personal injury case.
Structured Settlements funding is very popular in the legal funding arena because this type of funding is much safer for the lender than that of pre-settlement funding. Legal funding companies provide both structured settlement funding and structured funding annuity. These companies can provide cash advancements for several monthly payments or purchase the life of the structured settlement or annuity.
Commercial litigation funding provide funding to companies that are in need of cash advances against cases such as wrongful termination, breach of contracts, class action, discrimination and product liability. The money you get from commercial litigation funding are typically used towards the trial, expenses, company growth and employee salaries. These loans typically range from the thousands of dollars into the millions.
Attorney Funding or Law Firm loans are very popular to those attorneys that take on contingency fee cases such as personal injury cases. A personal injury case can go on for years and without a steady flow of cash coming into the firm, financial hardship can happen. Lenders that provide attorney loans typically offer several different services including financing, funding and lines of credit. This funding can be used for trial expenses, company growth, employee salaries and personal everyday expenses.
Whether you are seeking cash advances as a person that has been involved in an accident or an attorney seeking a line of credit, legal funding can help. Regardless of the loan its important that you understand that each lending source charges premiums or interest on their payouts. Some companies offer non-recourse funding while others offer limited recourse loans. These types of loans are dependent upon the loan type.
When you are seeking a lawsuit cash advance its also important that you consider shopping payouts, rates, payment schedules and contract terms and agreements. You give yourself the financial advantage of doing your homework and finding the right funding sources for your case.
LawLeaf is an online legal funding service that provides the consumer options. LawLeaf works with lenders that will compete for your business. We match you with the Right lending companies based upon the amount of money requested and your case type. For more information on lawsuit funding and LawLeaf visit our website at http://www.lawleaf.com.