What is a law cash advance?
Law cash advance funding typically is provided in the form of cash advances given to the injured party in return for a promise to repay the advance when the lawsuit settles or there is a win in court. This type of law cash advance funding is called “non-recourse” funding, which means the plaintiff is not required to repay the cash advance if the case is lost in court.
If the case is a winner the repayment required is a percentage of the lawsuit settlement amount.
How law cash advance funding works
Procuring law cash advance funding is an easy, straightforward process. The injured party contacts a company who specializes in lawsuit settlement funding; sometimes this contact is due to the suggestion of a lawyer. The funding company contacts the lawyer who is in charge of the case and reviews the information the lawyer provides regarding the case.
The application for law cash advance funding is quickly approved or denied after a thorough review of the case. The funder makes an estimate of the anticipated lawsuit settlement or case verdict. Based on that estimate a cash advance is offered to the plaintiff. The feel for the money is either a flat fee or can be a monthly fee that accrues each month the loan is outstanding. When the case settles the loan and fees are paid to the lawsuit settlement company. The process is simple and quick.
Amounts of law cash advance funding can vary quite a bit, depending on the case and the company. Amounts can range from $500 to $100,000. Fees also vary.
Law cash advance funding can help plaintiff’s avoid financial ruin and pressures as they await the settlement in a long drawn out legal case.