Pre settlement funding is an arrangement between a legal funding company and a lawsuit plaintiff. It grants the plaintiff a certain sum of money that the plaintiff needs for whatever purpose it may serve. The legal funding company does not have control over the plaintiff as to how will he spend the total amount of cash that is granted to him by the company. He can use it for his foreclosure, for his medical bills, for his lawsuit, and even for his daily expenses.
The Risks of Getting a Legal Fundingpre settlement funding
It is true that there is a great risk in legal funding. However, this great risk we are referring to is shouldered by the legal funding company. In fact, it is the company that bears all the kinds of risks in pre settlement funding. That is why there is no reason to be afraid about getting legal funding. The only thing you will need to worry about is how to win the case and how to apply for a pre settlement loan that will serve as your cash advance.
Why Companies Are Offering Legal Funding?
There are so many people who are curious as to why companies are providing plaintiffs the amount of money that they need. There are two reasons for it. The very first reason is for justice. Of course, we all know that there are so many plaintiffs out there who lost their battle due to the lack of funds. Companies are offering their pre settlement funding to plaintiffs who have insufficient balance to fund their lawsuit. These legal funding companies really want justice to prevail.
The second reason is, of course, business. It is true that legal funding companies face great risks in this kind of business. Nonetheless, they will also earn a lot once their client wins the case in court. Both the client and the legal funding company will benefit from the lawsuit that was won.
How to Win the Case?
Though it is true that clients will no longer be required to pay the amount they get from the legal funding company if ever they lose the lawsuit, plaintiffs still want to win their lawsuit simply because they will be getting more from it and they want justice for themselves. That is why, though they will be obliged to pay the legal funding company the total amount they owe plus interest, they are still looking for ways to guarantee the success of their case. The only way to do that is to get enough cash to finance your lawsuit and get the best lawyer that will help you with your case.
The Coverage of Pre Settlement Funding
Many lawsuit funding companies have rejected some applications of plaintiffs. It is simply due to the fact that pre settlement funding is only available for certain cases, mostly, personal injury cases. Some of the cases that are covered by the lawsuit funding are wrongful discrimination, mesothelioma case, property damage case, fire damage case, and of course, bus accident.