Operating nationally and internationally, Baker Street Funding serves institutional clients and personal injury plaintiffs get the funds they need fast. We seek to deliver to our clients leading market results.
Legal funding is an option available to plaintiffs that allows them to unlock a portion of the expected settlement of their claim before the case has settled. Tell us about what you are looking for, and we’ll provide a recommended financing strategy designed by a team of Baker Street Funding legal and investment experts aligned to your and your client's goals. And if you choose to work with us, you’ll get special relationship-based pricing.
Legal funding, also commonly referred to as litigation loans or pre-settlement funding, is a process in where plaintiffs involved in current or future litigation, receive financing in the form of immediate cash against their future anticipated settlement award. This advance is solely based on the outcome of the case and paid back upon receipt of the settlement award.
The most important part of legal funding is that it is a non-recourse financing agreement. This means that it is solely based on the merits of the case and not the plaintiff’s credit history, job or education background. If the case does not settle in favor of the plaintiff, they are under no obligation to repay the funds to the funding company.
All information shared with Baker Street Funding is protected under attorney-client privilege. Because a third-party funding company is considered an interested party, the information we receive can not be shared.
Legal funding is not the only available option for plaintiffs. Before applying for legal funding, many plaintiffs approach more traditional banking institutions looking for a liquidity solution. The main difference between legal funding and other traditional banking solutions is recourse and payment schedule. With most traditional options, there is no option for non-recourse funding. Meaning that any approval is based on credit history and income profile. Many plaintiffs who find themselves out of work due to an accident do not qualify for a loan because their credit and income have been impacted by the accident. With traditional bank loans, there is a repayment period that could start as quickly as 30 days from taking out financing. This means that the plaintiff will have to make monthly payments until the debt it satisfied.
This is why most plaintiffs find legal funding as their preferred financial solution. There are no monthly payments and no risk of paying back the funds if their case does not settle favorably.
Lawsuit funding is a non-recourse transaction. This means that unlike a traditional loan, there are no monthly payments and no obligation to repay if the case does not settle favorably. There may be fees associated with an advance but all fees are paid upon successful settlement of the claim.
The short answer is yes, plaintiff funding is expensive. Because of the risk associated with losing their investment, legal funding companies charge a high rate of return on their advances. While some people are under the impression that you will have to pay back double or triple the amount you take out, the truth is that most funding companies charge an annual interest rate of 30-40%. One thing to consider is that these funds are not payable if the case does not settle.
Plaintiffs that can not access traditional financing and are in dire need of cash while their case settles should strongly consider settlement funding. While it is expensive, the risk of having your case settle unfavorably and you still owing money is eliminated. Legal funding should be a lifeline to help plaintiffs pay daily living expenses and case cost expenses. It should be a plaintiffs last resort not the first place they look.
The two main types of legal funding are pre-settlement and post-settlement funding. In pre-settlement funding, your case is still being litigated and there have been no accepted offers of settlement. In pre-settlement cases, Baker Street Funding normally releases up to 10% of the gross estimated settlement value of the case. That means we will advance $10,000 for every $100,000 we think the case is worth. In post-settlement funding, there has been an offer for settlement and the plaintiff has accepted it. We normally release up to 50% of the net value to the plaintiff or $50,000 on a case in which the plaintiff will receive $100,000 after all attorneys fees and liens.
There are both costs and benefits when taking out a settlement advance on your case. The interest in a settlement advance can be high compared to traditional loans, which leaves less money for the client to receive when the case settles, but if that money is needed now to pay litigation in corporate litigation cases, bills or for living expenses for personal injury plaintiffs, then the costs greatly justify the means.
If your client has looked at traditional financing options and they are unable or unwilling to use them and are in need of cash now to fund basic living expenses, then settlement funding is something you should greatly consider. At the end of the day, it is their decision whether to pursue a settlement advance or wait for the settlement check to arrive. Hopefully, now you know enough to make an informed decision on whether settlement funding is a good fit for your own unique situation.
Baker Street Funding is a Premier Legal Funding Firm designed to strategically connect select financing opportunities with our extensive network of sophisticated partners and staff. Terms and Conditions Apply. WE RESERVE THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AT ANY TIME WITHOUT NOTICE. To qualify for legal financing, a consumer must be (1) an attorney, or (2) you must be a corporate plaintiff looking for a minimum of $750,000 in litigation funding or a minimum of $50,000 in post-settlement funding, or (3) you must be a personal injury, civil rights or employment/labor law plaintiff with a retained lawyer on contingency; you must be at least 18 years of age, you must have a strong liability claim against a properly insured defendant, you must reside in an eligible state, and meet our underwriting requirements. Contact us to discuss your options. Not all borrowers receive the lowest rate. To qualify for the lowest rate, your attorney must contact Baker Street Funding and meet other conditions. If approved, your actual rate will be listed in your contract. Historical returns do not guarantee future results.
*We do not currently provide financing to plaintiffs looking for lawsuit finance residing in Arizona, Arkansas, Kansas, Maryland, Nevada, Oklahoma, West Virginia, or Washington D.C. We reserve the right to change the states where we provide services to without notice.
Attorney funding is provided throughout all states of the United States. The states we currently provides services to are:
Alabama, Alaska, California, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New York, North Carolina (Minimum $25K), North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming.
We currently fund Colorado at a minimum of $75,000. Case value must be at least $750,000+.
We currently fund North Carolina at a minimum of $25,000. Case value must be at least $250,000+.
d**We not provide services for workers’ compensation.
***This website and advertising are provided by Baker Street Funding, LLC to the extent that there is advertising related to Baker Street Funding, LLC. Transactions facilitated by us are not to be considered loans. These transactions are non-recourse financing agreements, which means that we are making an equity investment into your litigation. If you lose your case, you are under no legal obligation to repay your legal advance. The term lawsuit loans, lawsuit lenders, lawsuit cash advance(s), settlement advance loans, lawsuit settlement loans, or any word related to a loan(s), lending, lender(s), borrow(er), and cash advance(s) may be used to refer to legal finance. The words and any of its forms: loan(s), lender(s), lending, borrow, and cash advance(s) are strictly used for marketing purposes and easier comprehension for prospective clients. Our client relationships are paramount to us, and we take the client’s education process very seriously.
All information provided in this site is for educational purposes only and should not be taken as investment, legal, tax, or financial advice. We do not provide investment, legal, tax, or financial advice and prior to making any financial decision, please consult a financial advisor, an attorney, or tax professional.
All funding is subject to approval. Additional restrictions may apply. Call for details at 888-711-3599.
Baker Street Funding:
New York Office: 77 Water Street, 7TH floor, New York, NY 10005
Florida office: 780 5th Ave. South, Suite # 200, Naples, Florida 34102
Lawsuit Funding, Settlement Financing, and Litigation Loans: Baker Street Funding, LLC.
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