Archive for the ‘Litigation Funding’ Category
Litigation Funding
Litigation Funding offers financial resources to plaintiffs that are the victims of personal injury by the negligent acts of another. It is simple reality in the United States legal system that financial strength plays a significant role in the ultimate settlement or judgment amount of legal claims. Fortunately there are litigation funding companies like Global Financial (http://www.glofin.com) that offer funding services to Plaintiffs which can help level the playing field with deep pocketed defendants.
Litigation Funding is offered to plaintiffs with a legitimate legal claim, however, there are no credit checks or income verifications. The funding company advances cash to the Plaintiff in return for a portion of their potential legal claim proceeds. If the legal claim is successful then the litigation funding company receives their capital back plus fees, however, if the case is lost for any reason, the plaintiff keeps the money without obligation to repay the funding company. This type of contingent advance is not a loan but rather an investment which is speculative and repayable only upon some unknown and contingent event. In fact, it is very similar to the fee that a Personal Injury attorney charges its clients.
It is clear that large insurance carriers for defendants in personal injury cases will make low ball offers to see how desperate a plaintiff may be. They are using their financial superiority in hopes of achieving a settlement amount that is lower than the ultimate value of the plaintiffs claim. It seems to be a game of cat and mouse in which the cat represents the defendants insurance carrier and the mouse represents plaintiff. Fortunately, litigation funding companies like Global Financial (866-709-1100) can help level the playing field for personal injury victims and allow plaintiffs to receive a full and fair settlement or judgment.
It is important to note that Litigation Funding can be considered as a form of insurance against a potential loss in the legal claim. In other words, the plaintiff receives a financial guarantee that they will receive a financial recovery regardless of the outcome of the legal claim. If there is no financial recovery from the legal claim then the plaintiff will still obtain a financial recovery from the claim by keeping the cash advance received from the litigation funding company without obligation to repay any amount. If, however, the legal claim is successful, the plaintiff is only obligated to repay the cash advance they received plus fees. Regardless of the outcome, a plaintiff is guaranteed a financial recovery and that is assurance or insurance no matter how you look at it.
About The Author
Wensley McKenney is a graduate of Tulane University and has 15 years experience in the financial and legal fields. His firm Emerson Capital, Inc. has raised more than $125 Million of public companies.
Lawsuit Loans
Lawsuit Loans which are also known as pre settlement cash advances allow a financially strapped plaintiff to access a portion of their future legal settlement to pay today’s necessary living expenses. Personal Injury and worker compensation lawsuits can take years to resolve and large insurance companies have the financial strength to legally delay the process which can financial ruin an injured claimant who is looking for a fair settlement offer.
Companies like Global Financial (http://www.glofin.com) offer cash advances against all types of Personal Injury & Worker Compensation claims. It works like this: Global Financial will review the merits of an applicant’s legal claim and determine the chance & size of a financial recovery. They then offer the claimant a small percentage of the total value of their claim in return for an assignment of a portion of the potential future proceeds in the claim. If there is no financial recovery from the claim then the funding company receives nothing. This makes lawsuit loans very risky and actually a venture capital investment rather than an actual loan as the names suggests.
The fees charge by lawsuit loan companies can vary dramatically but it is usually best to stick with the larger companies, like Global Financial (http://www.glofin.com) because they work on larger volumes and lower pricing. Usually a funding company will charge either a monthly fee or a flat fee depending on the risk associate with the claim.
It is my personal opinion that a claimant should ask themselves one question before applying for a cash advance against their pending claim. Will the advance that I receive pay immediate and necessary living expense? If the answer is yes then you should accept a cash advance and continue with your legal claim. If the answer is no then it might be wise to hold off and wait before applying for a lawsuit loan or cash advance against your pending claim. In addition, a lawsuit loan may be a very important tool when the defendant’s insurance carrier decides to make a low ball offer for settlement in the claim. You can then use a lawsuit loan as a financial tool to say no to the low ball offer and have the financial strength to wait for a higher and fairer settlement.
Lawsuit Loans have been trademarked by Global Financial as “Lawsuit Insurance” because they offer insurance like protection to plaintiffs in the event that their claim is unsuccessful. If a plaintiff takes a cash advance against their pending legal claim and their claim is unsuccessful then they get to keep the money that was advanced to them. Thus the cash advance guarantees that their claim will be financially successful either by way of the cash advance or by way of settlement or judgment.
About the Author
Wensley McKenney is a graduate of Tulane University and has 15 years of experience in the financial and legal fields.
Lawsuit Insurance is a trademark of Global Financial Credit, LLC, http://www.glofin.com, wensley@glofin.com
