Where to Find the Best Deals in Legal Finance

Q. Why use a legal finance company?
A. Only use a legal finance company if you are the plaintiff in a lawsuit and you need cash to pay pressing bills. If you are involved in a lawsuit, but you do not need cash or you have other sources of income, you probably do not need the services of a legal finance company.

Q. What is the legal finance application and funding process?
A. The process begins when you apply for funding. The legal finance company reviews your application, and if you appear to have a good case, they contact your attorney and request supporting documentation. Once a legal finance underwriter has reviewed this documentation, he makes a decision about funding your case. The legal finance company sends an agreement to your attorney to review on your behalf, and when the legal finance provider receives back your signed agreement, a check is issued and over-nighted to you.

Q. How does the legal finance company get paid back?
A. When you win your case at trial or reach an out-of-court settlement, the proceeds of your settlement go into a trust account that is administered by your attorney. Your attorney pays his fees and expenses from that account, and also pays the legal finance company and any other lien holders. If you lose, you keep the advance, and you owe the legal finance company nothing.

Q. What is the difference between legal finance, lawsuit funding, litigation financing, lawsuit loans and pre-settlement funding?
A. These are different terms for the same service. We prefer the term legal finance as being the most universal and accurate.

Q. What involvement does the legal finance provider have in my case?
A. None at all! Once the legal finance company advances you funds, it is not involved in any way in the prosecution of your case, but the legal finance company will ask that it be kept informed as the case progresses.

Q. What rate of interest do legal finance companies provide?
A. No interest is charged, so there is no interest rate. Interest is charged on loans, and the funds you receive via legal finance is not a loan. Legal finance companies charge “risk premium” and it is assessed in six-month intervals. The risk premium differs from advance to advance since each application for legal finance funding is considered on a case-by-case basis.