Legal Funding » What Are The Benefits?

What is legal funding?

In a nutshell: legal funding is not a loan.

Many people choose not to file lawsuits solely due to their limited finances. Litigations can be expensive, and supporting a family or a business while also receiving medical treatment or fighting costly litigation can result in huge bills and losses. The global legal funding industry, or the lawsuit financing sector, is a group of companies offering programs to finance expenditures by plaintiffs engaged in personal injury cases, other civil nature lawsuits, or institutional litigations. Legal funding is a non-recourse financial solution for plaintiffs and attorneys. Legal financing provides you with a cash advance on your legal settlement. It alleviates the financial burden that comes from litigation. In short, it allows you to pay general living costs while you approach the court and seek redressal for the wrongs that occurred to you.

How does the lawsuit financing industry work?

In a nutshell: the legal funding industry is led by investors.

Where do legal financing companies generate profits from? The industry has now caught pace with other financing regimes in the modern world. This means that the litigation funding industry currently consists of over a hundred lawsuit financing companies, all providing legal funds at competitive rates and terms. The lawsuit funding industry is also being increasingly regulated through bye-laws and private bodies, making it safer for plaintiffs to obtain financing. Legal funding also comes with other benefits for plaintiffs. Those applying for pre-settlement funding can be at ease because there is no risk. If the lawsuit doesn’t end up in an award, recovery, or settlement; they will owe nothing to the legal funding company. The entire amount financed is surrendered by the lawsuit funding company, which reserves no right to claim it at any forum. Plaintiffs in need of a cash advance, are free to use our litigation financing programs to their benefit.

Legal funding is risk-free.

In a nutshell: lose the case? You walk with the cash.

For a plaintiff who has received personal injury resulting in long-term or permanent impairment, getting into dangerous debt would be the last thing on their minds. As opposed to traditional loans, plaintiffs naturally tend to incline towards lawsuit funding for the very reason of safety it accompanies. If the plaintiff loses the lawsuit and does not recover anything, he doesn’t have to worry about repaying the pre-settlement funds he had borrowed. Legal funding companies take on the full investment risk to finance a lawsuit, which becomes risk-free to the plaintiff, enabling them to focus their resources to fight a significant legal battle until they reach a fair settlement. That’s why legal funding is risk- free.

No win? No pay

100% risk-free.

Legal funding is flexible.

In a nutshell: legal funding contracts are flexible depending on the company.

As discussed, legal funding is different from conventional loans. Our solutions do not entail strict terms and conditions. Hence there are no issues of interest rate variations with timely payment deadlines to observe or stringent monetary plans if the case doesn’t win a settlement. Legal funding companies like Baker Street Funding are aware that these programs are relatively safer forms of lending. For this reason, we formulate flexible pre-settlement funding plans for plaintiffs than those offered by banks, to put them at liberty and ease. Also, with the advent of more and more entities offering legal financing today, plaintiffs have a lot more options to choose from, based on their specific circumstances and tailored requirements.

Flexibility

in contracts and rates.

Legal funding helps attorneys and their clients.

Legal funding alleviates the burden of clients continuously contacting their attorneys to try and rush the filing of their claims. Normally this sense of urgency comes from the clients’ lack of ability to pay for basic bills and living expenses that cannot be covered due to their injury. At Baker Street Funding, we work with attorneys to help provide their clients with tailored made funding solutions to help cover their essential expenses during the course of their litigation. Our non-invasive, quick funding process allows attorneys to focus on winning the claim and not fielding unnecessary calls from their clients. This is why Baker Street Funding is the top choice for attorneys across the country to provide low-cost financing solutions for their clients.

Legal funding empowers plaintiffs financially.

Looking after domestic expenses as well as ongoing litigation can be financially frustrating. Defendant companies who are sued often exploit the financial pressures on plaintiffs and push them for cheap settlements. Many of the plaintiffs with no alternatives are compelled to surrender before those low-ball offers and end up receiving peanuts in the settlement compared to what they deserved. Many plaintiffs who secure legal funding exclude themselves from possible insurance exploitation, and hence this is another reason legal funding is a great advantage to them.

Pre-settlement funding helps you obtain medical treatment.

After suffering through a personal injury, any delays in receiving the necessary medical treatment can cause fatal complications. Not many people have ample savings or resources to finance major medical treatments. In such cases, pre-settlement funding can help plaintiffs to choose the right medical options available to them through medical lien funding. Once the plaintiff has received quality medical assistance and has recovered, the legal funds or costs incurred over it can later be paid when the lawsuit reaches a settlement.

Medical funding

is available for injured victims.

The lawsuit funding process is fast.

The legal funding process is generally fast. In as little as 24 hours, plaintiffs can get their cash advances to use to pay bills or other emergency expenses. Once the attorney provides the required case file, a legal funding request can be approved within hours.