Lawsuit Cash

Since it is unethical for a law firm to fund the case of its own client, the law firm must have the client use a pre-settlement funding company when the client is looking to obtain a “lawsuit loan”.  There are many factors to consider when choosing a pre-settlement funding company.  Rates are often the most important factor to a law firm when choosing a pre-settlement funding company, but there are many other important aspects that a law firm should consider when making this decision.

Often the ease of service is something that is taken for granted.  When a law firm is working with a boutique pre-settlement funding company, the company is in a better position to provide individual attention to the law firm and its clients.  With this personal relationship it will be easier for the law firm to provide a client with a cash advance that may have a more difficult fact pattern verses trying to persuade a large pre-settlement funding that the law firm has no relationship with.  Additionally, the rate of approval for secondary funding requests is greater with a boutique pre-settlement funding company.

A law firm might think it saves them work to tell a client to find a pre-settlement funding company on his or her own, but this process can actually result in higher fees and create substantially more work for the law firm.  If a client uses a broker this could mean much higher fees added onto the funding.  Should a client apply to five different companies, those five companies will request applications and documentation from the law office as well as require phone calls by the attorney with each company.  If an attorney does not handle all of this for his client he risks being substituted on the case by another attorney that will.  Furthermore, filling out an application can be detrimental to the case because a defense lawyer can request it in discovery.  When a law office has a relationship with a boutique pre-settlement funding company they will not need to fill out an application.  Once the relationship is established, if an attorney needs to request additional funding for a client this will only require a quick phone call to update the boutique pre-settlement funding company, as opposed to having to fill out an entire application each every time a client needs additional funds.  Additionally, the rate of approval for secondary funding requests is greater with a boutique pre-settlement funding company, than with larger pre-settlement funding companies.

Once a law office has an established relationship with a boutique pre-settlement funding company, the work required to obtain pre-settlement funding for a client will be streamlined.  The attorney will only have make a short phone call to the boutique pre-settlement funding company to discuss the case briefly and come to a funding number, which makes the attorney feel comfortable that the clients are being treated fairly, and that the approval amount will not be too high to hurt the settlement process.  When dealing with a boutique pre-settlement funding company, a law firm can be confident that its clients will be treated with the respect they deserve and in some instances the law office will be able to negotiate a better repayment rate for the client.  With a boutique pre-settlement funding company a law office has a relationship wherein the deal will move quickly, easily and not waste the attorney’s time.

There are additional benefits to having a relationship with a boutique pre-settlement funding company, such as the company already having established relationships with mediators and surgeons they can introduce the law firm too that will help advance its clients cases and its practice.  A relationship with a company will also allow the law office to ask for favors, such as to reduce the lien at the end of the case if it is necessary or if the law office forgets to pay the boutique pre-settlement funding company it already has an established relationship with they will be more likely to work out an amicable resolution with the law office.

The benefits of working with a boutique pre-settlement funding company are significant.  It can considerably benefit both the law firm and its clients.  This will allow the law firm to grow its practice.  A boutique pre-settlement funding company is clearly a strong option for obtaining pre-settlement funding for a client.

By: Larry Hoffman, LH Funding

There are many pros and cons to pre-settlement funding.  It is important to be aware of all of the advantages and disadvantages to pre-settlement funding before deciding if this is the right option for you.

The advantages of pre-settlement funding often outweigh the disadvantages.  Personal injury plaintiffs may have difficulty meeting their immediate economic needs while they await the outcome of their case.  Pre-settlement funding can help them to meet those needs.  Pre-settlement funding can be used to meet various needs such as to pay rent, make car payments, for medical expenses (such as surgery related to the accident), alimony payments, essential monthly living expenses, etc.  There are no upfront costs, credit checks or lengthy applications and if you are eligible your funds will typically be available within a day or two.  An additional advantage to pre-settlement funding is that the pre-settlement funding company assumes the risk that if there is no recovery from the pending lawsuit, the client does not owe the pre-settlement funding company anything.  Because it is not a loan, this cash advance does not appear on any credit reports, so it does not negatively impact your credit score or debt load.  If you have an immediate economic need, especially if you are in a situation that requires urgent surgery and you do not have health insurance to cover the procedure, pre-settlement funding may be the best option available.

Pre-settlement funding can also help level the playing field during a lawsuit.  A personal injury claimant may wait a few years for a lawsuit to resolve.  Oftentimes the injured party is unable to work due to their injuries and has a difficult financial time while waiting for the case to settle.  Many times the insurance company will make a low settlement offer hoping the injured party will accept this low offer due to the injured party’s desperate need for funds.  Taking a cash advance can help the injured party make it through the difficult financial time until settlement or verdict without having to accept a low ball offer from the defendant’s insurance company.

The disadvantage to pre-settlement funding is that this means for obtaining money is expensive.  Pre-settlement funding should only be used if you have no other alternative method to meet your immediate economic needs.  Pre-settlement funding is expensive because you pay nothing until the case is settled and during that time the fees can build quickly.  This amount could end up being a large part of the settlement you obtain at the end of the case.

Though, often pre-settlement funding is the answer, you must weigh the pros and cons against your individual needs and expectations.  There are times when the need for pre-settlement funding is unavoidable, such as when you are faced with the need for immediate surgery or possible eviction.  In those cases, the advantages of pre-settlement funding far outweigh the disadvantages.  In other situations, where alternative arrangements can be made, it may seem more practical to use other means to manage financially until you receive your settlement.

By: Larry Hoffman, LH Funding

Lawsuit cash advances provide money immediately to personal injury plaintiffs while their case is ongoing.  The money can be used for anything the client wants.  Generally it is used for necessary living expenses, such as:

• Paying Rent;
• Making Car payments;
• Medical Expenses (like surgery related to the accident);
• Alimony payments; and
• Essential monthly living expenses, etc.

The advance is to be repaid by the client upon the successful conclusion of the personal injury case.  There are no monthly payments while the case is ongoing.  Everything is payable at the end of the successful lawsuit or claim.

Lawsuit loans are technically not loans.  Lawsuit loans are really known as lawsuit cash advances or pre-settlement funding and are non recourse cash advances.  This means if you receive an advance from a funding company and you lose your personal injury case, you will not owe the funding company anything.

The company providing the pre-settlement funding or lawsuit cash advance, assumes the risk that if there is no recovery from the pending lawsuit, you will not owe funding company anything.  This is called non-recourse funding.

This vehicle for obtaining money is expensive, and if you have any alternative means to meet your immediate economic needs you should do so. Additionally, it is best to request only the amount of money you need to meet your immediate economic needs as fees grow quickly the more money you obtain.  Make sure you ask the funding company any questions you have before accepting funds.  Discuss and review all contracts for funding with your attorney.

The funding company has no control over the processing of the case and can offer no opinions or advice.  The case remains in the full authority and control of the client and the attorney.

There is no minimum or maximum funding amount.  There are no upfront out of pocket fees or costs.  All payments are due at the time your case is settled.

If you are having trouble paying your bills while you wait for the outcome of your personal injury case and have been turned down everywhere you looked to obtain money to help you get by during this difficult time, then a lawsuit cash advance may be your answer.

By: Larry Hoffman, LH Funding