As a legal professional who specializes in personal injury law, it would be worth your while to better understand litigation financing. Litigation financing, which is also referred to as legal funding, pre-settlement cash advance, lawsuit loans, structured settlements, and many other names, is quickly growing in popularity, and for good reason. Legal funding helps plaintiffs cover the mounting costs of medical bills, living expenses, attorney fees, and other costs accrued post-injury and pre-settlement. Despite popular belief, this fact helps both plaintiffs and attorneys. However, because it is a highly misunderstood concept, too few legal professionals are taking advantage of lawsuit loans. Here we will dispel a couple of myths regarding this relatively new concept in the hopes that you may think about taking advantage of a pre-settlement cash advance during your next personal injury case.
Myth 1: Lawsuit Loans are Just for Clients
As you well know, personal injury attorneys often take a huge risk when they agree to take on a personal injury case, especially when that case goes to trial, as there is no guarantee that they will get paid. Pre-litigation financing takes away that risk, as it allows the client to pay for costly resources that may advance his or her case. For instance, without the funding, you may be unable to call in expert witnesses or hire a skilled investigator as you do not have the funds or the nerve to advance that kind of cash without a guarantee you will see it again. However, if a client receives a pre-settlement loan, you can persuade him or her that such resources are beneficial to his or her case and to pay for them with the loan. The client may be willing to do so for two reasons: a) it means a better shot at winning a sizeable settlement and b) he or she is not forced to repay the funds if he or she loses.
Myth 2: Litigation Finances Control the Direction of the Case
It is a common misconception that once a third-party funds a client, that third-party assumes some control over the case. While it is true that the third-party now has a vested interest in the outcome of a case, it is far from true that it will have any amount of control over how attorney and client go about obtaining that outcome. Once the funds are delivered, the financing company will do nothing more than monitor the progression of the case.
Myth 3: Litigation Financing is Expensive
As with all businesses, litigation financing companies must make a profit. However, that does not mean that they are out to swindle or steal. If that were the case, legal funding companies would not be able to stay in business.
At Capital Financing, we are able to remain in business because of our fair and simple fees. Unlike our competitors, we do not enforce advance fees after 12 months, we do not instate compounding fees, and we only implement three fee increases over the duration of your loan (which is far below industry standard). Moreover, we do not charge broker fees, a fee to deliver your funds, or hidden fees of any sort. We remain completely transparent with what we plan to charge you and your client and leave it up to you to determine if the rate is fair or not. We are sure that you will discover it is more than fair.
To learn more about our pricing structure and why pre-settlement cash advances are the way of the future in personal injury cases, contact Capital Financing today.