Lawsuit Loan Companies
Below is a MRR and PLR article in category Finance -> subcategory Loans.
Understanding Lawsuit Loan Companies
Overview
Litigation can be prohibitively expensive, often preventing individuals with strong cases from pursuing legal action. Lawsuit financing offers a solution by providing necessary funds without the burden of credit checks, monthly payments, or collateral. This support can be crucial for claimants who have lost jobs or missed work and struggle to pay essential bills. Historically, financial pressures forced many to accept smaller settlements. Now, with lawsuit loans, clients can maintain their personal lives while allowing attorneys the time needed to maximize case value.
What Are Lawsuit Loans?
A few companies specialize in lawsuit funding, primarily for personal injury cases, although options for commercial and other types of lawsuits are less common. These companies evaluate cases based on their specific criteria.
Key Players
- Legal Advances: This company requires applicants to submit information and attorney contact details. Within 48 hours, they make a decision regarding the cash advance. Legal Advances do not offer legal advice or interfere with case strategy but may check in with the attorney periodically to monitor progress.
- Global Financial: Specializing in personal injury and worker compensation claims, Global Financial offers low-cost cash advances against pending settlements. They assess the merits of a claim and offer a small percentage of its potential value. If there’s no financial recovery, the company receives nothing, positioning these loans more as venture capital investments rather than traditional loans.
Risk and Rates
The risk associated with lawsuit loans means interest rates can vary significantly. Typically, these companies finance 10% to 15% of the potential settlement value. For instance, a case valued at $100,000 might result in a funding offer of $10,000 to $15,000. Companies carefully evaluate cases, considering both the lawyer and the potential settlement value, to determine funding suitability.
Conclusion
Lawsuit funding is available in most states, providing crucial support for individuals in financial distress, allowing them to pursue rightful legal actions to their conclusion. This financial backing ensures that even those facing economic hardships can see their cases through to a fair resolution.
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