Being a plaintiff you may understand what is legal funding. But for a general audience, we are explaining it to make things clear.
Legal Funding is a cash advance that is offered to the litigant by some lawsuit funding company to pay the legal bills during ongoing litigation.
Though there are a few drawbacks of legal funding in comparison to its benefit. Then also we are creating an article on “Pros & Cons of Legal Funding”.
We think that being a trusted Litigation Financing company it’s our duty to highlight all the sides of any loans & investments. It has been noticed sometimes that legal funding doesn’t turn out as helpful for every individual.
But then also there is no doubt that legal funding from reputed providers like America Lawsuit Loans will assure that you get those urgent amounts of cash, which you need during the pending settlement.
Pros of legal funding for personal injury litigations.
All legal funding is termed as a non-recourse loan, which means that the repayment is based on the result of the lawsuit. If a plaintiff wins the case then only the repayment needs to be done.
Either if the applicant loses the case in court then the Lawsuit funding firm will never ask for the payback.
This means that you have no obligation to repay the money back in case you lose the case and the compensation opportunity.
This is the biggest reason which tempts plaintiffs to get legal funding from America Lawsuit Loans as they are the most reputable company of lawsuit loan provider at a low rate in comparison to the complete industry of litigation financing in the US.
No credit checks needed
Another advantage of legal funding is that while offering a legal loan to the plaintiff the lending firms never ask for a credit check. This means that none of your past finances will affect your future funding. Even if you get a bad credit score then also you can hope for lawsuit loans against the future compensation amount.
Quick Way of Getting Cash for Lawsuit
More pros of legal funding are that this kind of funding is quick. Therefore you can have your money in very less time compared to bank loans or personal loans. In case you need urgent cash to pay the legal bill or any medical bill related to the injury caused. You can apply for legal funding.
Comes in handy during the absence of funds.
In several instances plaintiff agrees to settle on a lesser compensation amount because of the absence of funds. But with legal funding on your side, you can fight till the last. To acquire the appropriate amount of compensation from the offender.
Cons of Legal Funding that plaintiffs must know.
They are expensive loans
As we have mentioned earlier that legal funding is non-recourse loans.
This means that the plaintiff has no obligation to return the money if he/she loses the case.
The very reason for the high-interest rate loans. Lending companies charge high-interest rates over the loan which they offer against the future settlement.
Since there is no collateral guarantee against the loan making the lending firm nervous. Eventually, all of this leads to expensive funds.
May take all your Settlement
Another disadvantage of acquiring legal funding is the long duration of the litigation.
Any kind of personal injury claim takes time to settle. It can vary from months to years. This leads to a rise in the amount in terms of added interest to the taken cash advances.
Eventually when litigation takes a long period to settle the total amount you owe to a lending firm increases to such an instance that you have to give all your compensation money to the funding firm.
At the Bottom
There is a bit of relaxing that not every time litigation takes a long duration to settle. In fact, legal funding overall can be handy. But only if the settlement loans are taken from reliable companies like America Lawsuit Loans.
As a plaintiff, if you need urgent cash then you can apply for legal funding with us by calling +1 888-335-3537 and filing our Online Application of Lawsuit Loans.