1. Check that the lawsuit financing company is either accredited by BBB, Trust E or a local authority
2. Google for complaints on the financing company
3. Make sure the company is transparent with all their costs during your application
4. Read our few reviews on the companies that we deem trust worthy

7 Steps Application

The lawsuit financing application process is completely confidential and prompt.

1. Complete the lawsuit financing company’s application form. This is free and does not oblige you to use their services if you are uncomfortable with them.
2. Authorize the release of lawsuit information to the lawsuit financing company
3. Thorough but quick review will be done by the underwriters
4. You complete the lawsuit financing agreement if approved
5. Money for lawsuit is given by bank cheque
6. Repay the lawsuit financing amount if litigation settlement is awarded
7. Pay nothing if the case is lost!

Guideline 1 : Choose Transparent Lawsuit Financing Companies

Always approach lawsuit financial companies that are transparent and upfront about the costs of lawsuit cash advances provided by them. There are certain companies that charge hidden fees that may reduce your court settlement amount significantly.

Guideline 2 : Borrow What You Require

Borrow only the amount of lawsuit cash advance that you require. The higher the lawsuit cash advance, the higher the interest and/or fee(s) charged.

Guideline 3 : Know The Options That Fulfill Your Pre-settlement Needs

Check with the lawsuit financing company if they offer different financing options. You can minimize your costs depending on your litigation type.

For a prolonged litigation, you would want to arrange for a flat fee. If the litigation is expected to settle fast, a monthly interest fee may be reasonable. However, do note that lawsuits usually are protracted.

Talk with you attorney before selecting the lawsuit financing package that is appropriate to your needs.

Guideline 4: Contact Multiple Lawsuit Financing Companies

Negotiate with the lawsuit financing companies. Make them reconsider their financing options if their competitors gives a better lawsuit financing offer. Use the costs of the financing packages that you know of as a negotiation base with other lawsuit financing companies.

Lawsuit Financing Info Guide

Factors That Affect Eligibility For Lawsuit Loans

In assessing whether you are eligible for a cash advance, the lawsuit financing company’s priority would be to determine how likely you will win the litigation and get the settlement. This is beneficial to you because, unlike applying for a bank loan, the lawsuit financing company does not care about your credit worthiness or employment.

After all, the lawsuit cash advance is repaid by the out-of-court settlement or from you winning the case.

Keep in mind though that you might receive less lawsuit cash advance than you request. This depends on the type of litigation.

Cost Of Lawsuit Financing

Similar to interest on a bank loan, there are costs to borrow from a lawsuit financing company. Lawsuit financing can be more expensive than bank loans.

However, there are few alternatives to lawsuit financing that offer the same benefits. A lawsuit financing company takes the plaintiff’s borrowings as an investment. They are banking on the fact that the plaintiff will succeed in receiving court settlement, in which case, the lawsuit cash advance amount is repaid to them together with a high fee or interest.

The main point being: Can you find a bank that would lend you money and ask that you repay it only if you win your court case? Obviously impossible!

Common Terms and Costs of Lawsuit Financing

These are some common terms and costs to look out for:

Recurring Interest

Certain lawsuit financing companies charge a monthly fee on the cash advance to the plaintiff. This interest is higher than that of a bank interest rate.

Flat Fee

This is an agreed amount of fees, between the plaintiff and the financing company, to be paid when the case settles.

Do note that the amount of interest on lawsuit financing depends on the type of lawsuit and estimated amount in settlement.

Lawsuit Financing Info Guide

Should Getting A Lawsuit Cash Advance Be The First Priority?

Lawsuit financing should in fact be a last resort. While lawsuit cash advances are to be repaid when you win or reach settlement out-of-court, the amount you owe the lawsuit financing company can differ significantly. This depends on the length of time between the cash is advanced and the litigation is settled.

The next thing you should know is that on average a lawsuit can last twice as long (between 9 months and 2 years) as originally expected. So, the longer the lawsuit cash advance is made, the costlier your lawsuit financing.

Exhaust other financing options before taking up lawsuit financing.

When Should I Use Lawsuit Financing?

When the plaintiff is suffering under financial strain, which is made worse by a prolonged litigation, lawsuit financing can release the burden. If you are struggling to pay critical bills and living expenses, do not hesitate to apply for a lawsuit cash advance.

With lawsuit financing covering your bills and living expenses, your attorney can pursue a higher reasonable settlement without being pressured to accept insultingly low offers (to avoid prolonging the litigation).

Furthermore, in circumstances where the plaintiff is likely to become homeless (e.g. eviction), the lawsuit financing would make a huge difference. He or she would not need to worry about paying the legal expenses, on top of the stress of being homeless.

When you anticipate that you’d eventually suffer in these situations, apply for lawsuit financing. Do it early! The application for a lawsuit cash advance takes time as the lawsuit financing company would request and process legal documentation from your attorney.

Lawsuit Financing Info Guide