Tuesday, March 14, 2006

Lawsuit Loans – Where Do I Begin?

Lawsuit loans can be confusing especially for someone who was recently introduced to the concept. What is a lawsuit loan? Do I need a lawsuit loan? How do I get a lawsuit loan? When I am approved for litigation funding, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and the following text will answer these questions and more.

What is a lawsuit loan?
A lawsuit loan is not a “loan” at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Litigation finance companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. Lawsuit loans are not based on a plaintiff’s prior credit or bankruptcy status. Other terms used for this type of funding include: litigation funding, litigation finance, litigation loan, lawsuit funding, lawsuit finance, lawsuit cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need a lawsuit loan?
A lawsuit loan should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for litigation financing with the belief that a lawsuit loan is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that lawsuit financing companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on lawsuit loans. Some good sources of information are The Funding Exchange (https://www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get a lawsuit loan?
Lawsuit lending companies have popped-up all over the country. Some tout their “low interest rates” or how they are the most lenient when it comes to approving lawsuit loans. For every 1 respected lawsuit lending company there are 3 that will do anything to charge plaintiffs random penalties that make no sense. These penalties help to offset their “low interest rates” and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange (https://www.TheFundingExchange.com). The Funding Exchange is a network of the most respected lawsuit lending companies in the industry. You complete one application on The Funding Exchange and your application is intelligently routed to the best lending companies for your specific case.

If I get a lawsuit loan, do I have to pay back the money?
Almost all lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a litigation finance company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case?
The simple answer is “no.” Being denied for funding does not mean that your case is not a good case or that you will actually win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying lawsuit loan applications include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion
As a plaintiff, you should understand lawsuit loans and the process of securing litigation funding before you apply. If your expectations are set correctly and you proceed with a lawsuit loan then you will find that it is a saving grace in the turbulent world of litigation. If you apply for a lawsuit loan without an understanding of litigation finance then you may be disappointed.


About the author:
Tony Perkins is the founder and president of The Funding Exchange (www.TheFundingExchange.com) which connects the top lawsuit lending companies in the country to people in need of a lawsuit loan. The Funding Exchange is not a lawsuit lending company but rather it is an independent 3rd party company that routes a high volume of applications every day to its network of lawsuit lending companies. Mr. Perkins has unbiased experience in helping secure lawsuit loans.

4 Comments:

At 9:53 AM, Blogger The Funding Exchange said...

Searching for a lawsuit loan can be a confusing, frustrating, and painful process. Just the fact that you need a lawsuit loan means that you have most likely been injured and had to file suit against someone to recoup damages. You may or may not be able to work and now you are having trouble making ends meet financially. You are in a difficult situation well before you start the process of finding a lawsuit loan which is why I want to share my experience in the lawsuit loan industry with my 10 guidelines. I hope that this makes the process easier for you and allows you to secure a lawsuit loan and to ultimately receive the damages that you deserve.

First of all, let me quickly define a lawsuit loan:

Lawsuit loan definition: A cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Lawsuit loans are not based on a plaintiff’s prior credit or bankruptcy status. Lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then the cash advance is kept by the plaintiff with no obligation. Therefore, a lawsuit loan is not a true “loan” but rather a pre-settlement cash advance also know as: litigation funding, litigation finance, litigation loan, litigation cash advance, lawsuit funding, lawsuit cash advance, lawsuit financing, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, and pre-settlement lending.

The following are my 10 Guidelines Every Plaintiff Must Know About Lawsuit Loans, please read them and understand them as they should help every plaintiff through this difficult time.

10) Understand your case
Almost all personal injury attorneys will tell their client that they have a “million dollar case.” We all know that not every case is a “million dollar case.” I am not saying that your attorney is incorrect but I am saying that you, the plaintiff, should understand your own case. Familiarize yourself with other cases that are similar to your case. How long did it take to reach a verdict/settlement? Also, research the final verdict and settlement amounts awarded to the plaintiffs in those other cases which should help set expectations on your own case.

9) Lawsuits take forever
Have you ever heard someone say that the were surprised that their lawsuit proceeded so fast? The judicial system of the United States is not known for being speedy and I do not think that will change anytime soon. The odds are that your lawsuit will also take longer than you expect. My suggestion is to expect your lawsuit to take twice as long as your original estimate. This should help set realistic expectations and hopefully you will be pleasantly surprised at how quickly your case concludes.

8) Research lawsuit loans
I have given some background on lawsuit loans in this article but you should continue to learn as much as you can about lawsuit loans before applying for one. There are some good internet sites that give more background on lawsuit loans. Some good sources of information are The Funding Exchange (https://www.thefundingexchange.com/litigation_funding.aspx) and Expert Law (www.expertlaw.com).

7) Be prepared to accept less money
A lawsuit loan is not a substitute for your settlement. It should help supplement your current income so that you are able to pay necessary bills until you receive your settlement. The average lawsuit loan amount (depending on the case type) ranges from $1,000 to $10,000. There are lawsuit loan amounts that fall outside of this range but the majority of lawsuit loan applications ask for an amount within in this range.

6) Start early
I see too many plaintiffs who need a lawsuit loan immediately or else “they will repossess my car!” If you are sure that securing a lawsuit loan is the right thing for you then be sure to apply early since these things can take time (see number 3) and no one wants to have their car repossessed.

5) Use only a respected lawsuit funding company
Lawsuit funding companies have popped-up all over the country. Some try to tout their “low interest rates” or how they are the most lenient when it comes to approving lawsuit loans. The truth is that there are respected lawsuit funding companies in the industry that have been doing business for a number of years and they are still in business because they do not try to swindle plaintiffs. I have spoken to over sixty different funding companies ranging from mom-and-pop companies to institutionally funded giants. For every one respected lawsuit funding company I have found another one that will do anything to charge plaintiffs random penalties that make no sense. These senseless penalties help to offset their “low interest rates” and actually end-up costing the plaintiff more of their settlement money in the end.

4) Do not apply with multiple lawsuit lending companies at the same time
When you apply for a lawsuit loan directly with a funding company, they contact your attorney in order to gather documentation and to review your lawsuit loan application. If you apply directly to multiple lawsuit funding companies then you have several companies contacting your attorney at the same time and asking for the same information. Your attorney will become inundated and you may be denied by all of them because companies are now tracking plaintiffs and their applications in order to stop this. A good option is The Funding Exchange. The Funding Exchange is a network of the most respected lawsuit funding companies in the industry. You complete one application on The Funding Exchange (www.TheFundingExchange.com) and your application is intelligently routed to the best litigation funding company for your case. If the funding company declines your application then it is instantly routed to the next best lawsuit funding company and so on until your application is funded (or declined by all of the appropriate funding companies).

3) Be patient
It takes time for lawsuit funding companies to gather the necessary documentation from your attorney and to review your case. It usually takes a lawsuit funding company three business days to make a decision once they have all of the documentation. But, in almost all situations, gathering the documentation from your attorney takes the most time and can sometimes take weeks depending upon how cooperative is your attorney (see number 2 below).

2) Communicate with your attorney
It is absolutely vital that you communicate with your attorney. Every lawsuit funding company needs to review documentation about your case (medical records, complaint, police report, etc.) before approving your funding application since the lawsuit loan is based on the case itself. Your attorney must provide this information to the funding company or else your application will be declined instantly. Make your attorney aware that you are in need of this money and that they should cooperate with the lawsuit funding company by promptly forwarding the requested documentation.

1) Lawsuit loans should be a last resort
Lawsuit loans are only repaid to the funding company when you win your case. But, when you win your case, the amount owed to the funding company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first.



About the author:
Tony Perkins is the founder and president of The Funding Exchange which connects lawsuit funding sources in the country to plaintiffs in need of a lawsuit loan. The Funding Exchange is not a lawsuit lending company but rather it is an independent 3rd party company that routes a high volume of plaintiff applications every day to its network of litigation funding companies.

 
At 7:40 AM, Blogger The Funding Exchange said...

10 Rules of Lawsuit Loans

Searching for a lawsuit loan can be a confusing, frustrating, and painful process. You have most likely been injured and had to file suit against someone to recoup damages. You may or may not be able to work and now you are having trouble making ends meet financially. You are in a difficult situation well before you start the process of finding a lawsuit loan which is why I want to share my experience in the lawsuit loan industry with my 10 rules. I hope that this makes the process easier for you and allows you to secure a lawsuit loan and to ultimately receive the damages that you deserve.

First of all, let me quickly define a lawsuit loan:

Lawsuit loan definition: A cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Lawsuit loans are not based on a plaintiff’s prior credit or bankruptcy status. Lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then the cash advance is kept by the plaintiff with no obligation. Therefore, a lawsuit loan is not a true “loan” but rather a pre-settlement cash advance also know as: litigation funding, litigation finance, litigation loan, litigation cash advance, lawsuit funding, lawsuit cash advance, lawsuit financing, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, and pre-settlement lending.

The following are my 10 Rules of Lawsuit Loans, please read them and understand them as they should help every plaintiff through this difficult time.

10) Understand your case
Almost all personal injury attorneys will tell their client that they have a “million dollar case.” We all know that not every case is a “million dollar case.” I am not saying that your attorney is incorrect but I am saying that you, the plaintiff, should understand your own case. Familiarize yourself with other cases that are similar to your case. How long did it take to reach a verdict/settlement? Also, research the final verdict and settlement amounts awarded to the plaintiffs in those other cases which should help set expectations on your own case.

9) Lawsuits take forever
Have you ever heard someone say that the were surprised that their lawsuit proceeded so fast? The judicial system of the United States is not known for being speedy and I do not think that will change anytime soon. The odds are that your lawsuit will also take longer than you expect. My suggestion is to expect your lawsuit to take twice as long as your original estimate. This should help set realistic expectations and hopefully you will be pleasantly surprised at how quickly your case concludes.

8) Research lawsuit loans
I have given some background on lawsuit loans in this article but you should continue to learn as much as you can about lawsuit loans before applying for one. There are some good internet sites that give more background on lawsuit loans. Some good sources of information are The Funding Exchange (https://www.thefundingexchange.com/litigation_funding.aspx) and Expert Law (www.expertlaw.com).

7) Be prepared to accept less money
A lawsuit loan is not a substitute for your settlement. It should help supplement your current income so that you are able to pay necessary bills until you receive your settlement. The average lawsuit loan amount (depending on the case type) ranges from $1,000 to $10,000. There are lawsuit loan amounts that fall outside of this range but the majority of lawsuit loan applications ask for an amount within in this range.

6) Start early
I see too many plaintiffs who need a lawsuit loan immediately or else “they will repossess my car!” If you are sure that securing a lawsuit loan is the right thing for you then be sure to apply early since these things can take time (see number 3) and no one wants to have their car repossessed.

5) Use only a respected lawsuit funding company
Lawsuit funding companies have popped-up all over the country. Some try to tout their “low interest rates” or how they are the most lenient when it comes to approving lawsuit loans. The truth is that there are respected lawsuit funding companies in the industry that have been doing business for a number of years and they are still in business because they do not try to swindle plaintiffs. I have spoken to over sixty different funding companies ranging from mom-and-pop companies to institutionally funded giants. For every one respected lawsuit funding company I have found another one that will do anything to charge plaintiffs random penalties that make no sense. These senseless penalties help to offset their “low interest rates” and actually end-up costing the plaintiff more of their settlement money in the end.

4) Do not apply with multiple lawsuit lending companies at the same time
When you apply for a lawsuit loan directly with a funding company, they contact your attorney in order to gather documentation and to review your lawsuit loan application. If you apply directly to multiple lawsuit funding companies then you have several companies contacting your attorney at the same time and asking for the same information. Your attorney will become inundated and you may be denied by all of them because companies are now tracking plaintiffs and their applications in order to stop this. A good option is The Funding Exchange. The Funding Exchange is a network of the most respected lawsuit funding companies in the industry. You complete one application on The Funding Exchange (www.TheFundingExchange.com) and your application is intelligently routed to the best litigation funding company for your case. If the funding company declines your application then it is instantly routed to the next best lawsuit funding company and so on until your application is funded (or declined by all of the appropriate funding companies).

3) Be patient
It takes time for lawsuit funding companies to gather the necessary documentation from your attorney and to review your case. It usually takes a lawsuit funding company three business days to make a decision once they have all of the documentation. But, in almost all situations, gathering the documentation from your attorney takes the most time and can sometimes take weeks depending upon how cooperative is your attorney (see number 2 below).

2) Communicate with your attorney
It is absolutely vital that you communicate with your attorney. Every lawsuit funding company needs to review documentation about your case (medical records, complaint, police report, etc.) before approving your funding application since the lawsuit loan is based on the case itself. Your attorney must provide this information to the funding company or else your application will be declined instantly. Make your attorney aware that you are in need of this money and that they should cooperate with the lawsuit funding company by promptly forwarding the requested documentation.

1) Lawsuit loans should be a last resort
Lawsuit loans are only repaid to the funding company when you win your case. But, when you win your case, the amount owed to the funding company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first.



About the author:
Tony Perkins is the president of The Funding Exchange which connects lawsuit funding sources in the country to plaintiffs in need of a lawsuit loan. The Funding Exchange is not a lawsuit lending company but rather it is an independent 3rd party company that routes a high volume of plaintiff applications every day to its network of litigation funding companies.

 
At 7:41 AM, Blogger The Funding Exchange said...

Lawsuit Cash Advance Overview

Lawsuit cash advances can be confusing especially for someone who was recently introduced to the concept. What is a lawsuit cash advance? Do I need lawsuit cash advance? How do I get funding for my lawsuit? When I am approved for lawsuit cash advance, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and the following text will answer these questions and more.

What is lawsuit cash advance?
A lawsuit cash advance is not a “loan” at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Lawsuit cash advance companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. A lawsuit cash advance is not based on a plaintiff’s prior credit or bankruptcy status. Other terms used for this type of funding include: lawsuit loan, litigation finance, litigation loan, lawsuit funding, lawsuit finance, litigation cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need lawsuit cash advance?
Lawsuit cash advances should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for a lawsuit cash advance with the belief that a lawsuit cash advance is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that lawsuit cash advance companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on lawsuit cash advances. Some good sources of information are The Funding Exchange (www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get funding for my lawsuit?
Lawsuit lending companies have popped-up all over the country. Some tout their “low interest rates” or how they are the most lenient when it comes to approving lawsuit loans. For every 1 respected lawsuit lending company there are 3 that will do anything to charge plaintiffs random penalties that make no sense. These penalties help to offset their “low interest rates” and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange (www.TheFundingExchange.com). The Funding Exchange is a network of the most respected lawsuit lending companies in the industry. You complete one application on The Funding Exchange and your application is intelligently routed to the best lending companies for your specific situation.

If I get a lawsuit cash advance, do I have to pay back the money?
Almost all lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a litigation finance company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case?
The simple answer is “no.” Being denied for a lawsuit cash advance does not mean that your case is not a good case or that you will actually win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying lawsuit loan applications include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion
As a plaintiff, you should understand lawsuit cash advances and the process of securing a lawsuit cash advance before you apply. If your expectations are set correctly and you proceed with a lawsuit cash advance then you will find that it is a saving grace in the turbulent world of litigation. If you apply for a lawsuit cash advance without an understanding of litigation finance then you may be disappointed.

 
At 7:41 AM, Blogger The Funding Exchange said...

Pre-settlement Funding Answers

Pre-settlement funding can be a confusing concept. Plus, most people have never been exposed to the concept of pre-settlement funding so the average person probably has many questions such as: What is a pre-settlement funding? Do I need pre-settlement funding? How do I get funding for my lawsuit? When I am approved for funding, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and are answered below.

What is pre-settlement funding?
Pre-settlement funding is not a “loan” at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Pre-settlement funding companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. Pre-settlement funding is not based on a plaintiff’s prior credit or bankruptcy status. Other terms used for this type of funding include: lawsuit loan, litigation finance, litigation loan, lawsuit funding, lawsuit finance, lawsuit cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need pre-settlement funding?
Pre-settlement funding should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for pre-settlement funding with the belief that pre-settlement funding is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that pre-settlement funding companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on pre-settlement funding. Some good sources of information are The Funding Exchange (www.TheFundingExchange.com) and Expert Law (www.expertlaw.com).

How do I get funding for my lawsuit?
Pre-settlement funding companies have popped-up all over the country. Some tout their “low interest rates” or how they are the most lenient when it comes to approving pre-settlement funding. Many of these finance companies charge certain penalties and fees. These penalties and fees sometimes offset their “low interest rates” and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange (www.TheFundingExchange.com). The Funding Exchange is a network of pre-settlement funding sources. You complete one application on The Funding Exchange and your application is intelligently routed to the best pre-settlement funding companies for your specific situation.

When I am approved for funding, do I have to pay back the money?
Almost all pre-settlement funding companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a pre-settlement funding company increases the longer that your case takes to settle so keep that in mind.

If I am denied funding does it mean that I do not have a good case?
The simple answer is “no.” Being denied for funding does not mean that your case is not a good case or that you will actually win less money than you think. There are many different reasons why funding is denied. One reason is that the estimated settlement date is too soon. Litigation finance companies make money by accruing interest on their investment in your case. If your case is supposed to settle in 2 months then a litigation finance company will not make any money because the settlement date is too soon and therefore they may decline the funding request. Other reasons for denying funding include: attorney will not provide documentation, attorney will not sign contract, plaintiff demands too much money, etc.

Conclusion
As a plaintiff, you should understand pre-settlement funding and the process of securing funding before you apply. If your expectations are set correctly and you proceed with pre-settlement funding then you will find that it is a saving grace in the sometimes ugly world of litigation. If you apply for pre-settlement funding without a true understanding then you may be disappointed.

 

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