Populat Categories of Litigate Financing
Litigation financing is meant for assisting the plaintiffs who have a lawsuit but lack enough financial support to reach the conclusion of the case and get their settlement. The main role of litigation financing companies is to fund the plaintiffs in the case instead of giving them a loan. This finance is not based on a plaintiff’s previous credit or bankruptcy status.
The interest rates charged by different litigation companies for the financial assistance are different. It goes without saying that the litigation funding companies take a lot of risks when they choose to invest in the lawsuit instead of giving the plaintiff a loan. It is normal for a judge to dismiss a case even if it has a strong basis. For this reason, the cases that are successfully resolved have high-interest rates so that the funding company can balance that money with that of the cases that have not been resolved successfully. Some funding companies prefer to use multipliers overcharging interest rates for their financial assistance.
If you seek the services of financial litigation companies; you will not struggle in any way to find financial resources to help you fight the case. This assistance is offered to any person who lacks the means to fight a case. Generally, lawyers are not allowed to provide means to the clients. However, this does not mean that they cannot provide the clients with the various litigation financing options. The litigation financing options available are several.
The first type is the plaintiff’s funding. This financial assistance is offered to the plaintiffs on a non-recourse basis. When the plaintiff is given this loan, they are expected to pay high rates if they win the case. The funding company only takes away a certain percentage of the amount paid after the case has been resolved.
Another financial option is the post-settlement financing. In case you are not sure of the time you will receive the settlement, this is the best financial option you can choose.. This financing is offered on a non-recourse basis.
Most of the injury victims are the ones who are funded by the litigation financing companies. The other option is the attorney litigation funding. Most of the funding companies that offer this financing might postpone the payment of interest until the case is resolved.
If you are a plaintiff, you can consider using appellate financing to get the best lawyer for your case. It also provides funds to plaintiffs so that they can satisfy their monetary needs and have to pay if the case is successful.
There is some of the important information about litigation finance that every plaintiff should know before applying for lawsuit funding. As a plaintiff, it is always a good idea to choose a funding company with a good image.