Funding a lawsuit of any kind can be costly, no matter how much evidence a person has in his or her favor. For this reason, plaintiffs often find that they do not have enough money to pursue claims or, if they have enough money to start a claim, they often run out half way through the process and are forced to settle for less than what they deserve. Litigation financing provides a way for attorneys and clients to pursue a lawsuit comfortably, and without feeling the need to rush through to the end. This means both parties can devote more time and attention to the case and therefore, work together to achieve a more favorable outcome. If you have never used litigation financing to help your clients before, here are four reasons you should consider starting to do so.
Non-Recourse Funding
One of the greatest advantages of pre-settlement funding is that plaintiffs are under no pressure to repay the money lent to them if the claim fails. What this means for you is that you do not need to front your own money to pay for things such as a thorough investigation, expert witness testimony, document retrieval services, etc. If the claim is successful, the financing company recoups its costs by claiming a portion of the settlement, much like personal injury attorneys do in a contingency fee arrangement.
Levels the Playing Field
Unfortunately, the outcome of litigation often comes down to which party is better financed. If the defendant is better financed, the defense can draw out legal proceedings until the plaintiff is forced to give up or settle, neither of which is fair or just. Lawsuit loans level the playing field by allowing both parties to obtain adequate representation and for said representation to pay for all of the resources necessary to obtain a favorable verdict.
Allows for Extensive Case Analysis
When your client applies for litigation funding, the financing company will do a major part of your job for you—the case analysis part. Before funding anyone, the financing company will perform a thorough investigation of the case to determine its validity and likelihood of success. This not only helps the company make an informed decision, but it can also help you and your client determine the merits of your case before expending a ton of resources into building it. Some factors the financing company will explore on your behalf include the following:
- Potential damages;
- Potential for settlement;
- Case strategy;
- Estimated costs/budget; and
Reduce Additional Risk Factors
When a client chooses to purse a legal claim, the costs of building the case can quickly add up. Attorney fees, expert witness fees, court fees, and other expenses of litigation often fall on you, the lawyer. If the case is unsuccessful, you are out thousands of dollars. Litigation financing ensures that you get paid for your efforts even if the case loses. This can allow you to pursue a claim with peace of mind and by utilizing the full breadth of your resources.
Litigation financing helps minimize the risks for both attorneys and their firms as they are no longer forced to operate on a contingency fee basis. If you want to be able to dedicate all of your attention to the case at hand and not how much it is costing you, talk to your clients about utilizing settlement advance loans. Visit Capital Financing to learn more.
