What Attorneys Should Know When Clients Wish To Seek Lawsuit Funding

Lawsuit Financial is aware that some personal injury attorneys are not in favor of their clients obtaining a lawsuit cash advance on their settlement. They will often tell a client to simply wait out the litigation process. If the client is not faced with eviction or foreclosure, mounting medical bills, or subjected to other dire circumstances, Lawsuit Financial agrees that lawsuit funding is probably not a good idea. But, a financially distressed client is not a positive influence on settlement negotiations. Thus, an offer made in a time of great financial stress is likely to be accepted. Other times, clients will engage in a Google search for financial help. That process undoubtedly will reveal hundreds of lawsuit funding companies. Many plaintiffs will apply with several companies at the same time resulting in multiple information requests from their attorney. This delays the process, further impacting the plaintiff’s financial situation.

When attorneys have a clear understanding of the lawsuit funding process and its benefits, much of this process can be streamlined. On the other hand, the key to a successful lawsuit funding transaction is a thorough understanding of the litigation process and what plaintiffs and attorneys go through before they are in a position to resolve a case.

Mark Bello, founder and CEO of Lawsuit Financial, was a trial lawyer for 39 years. He has been in the trenches and knows the “ins and outs” of a law practice. Mr. Bello is also familiar with the financial devastation caused by a personal injury and the effects of an ongoing litigation. That is one of the key reasons he began Lawsuit Financial.

In the past 17 years, Mr. Bello’s company has helped relieve the immediate financial burdens that plaintiffs face, allowing them to obtain case-appropriate results. But, Lawsuit Financial is not like most legal finance companies, which are predominantly a financial industry owned company. Our business practices avoid two pitfalls that cause attorneys to be apprehensive about lawsuit funding: advancing too much money, so that it interferes with fair settlement; and being unwilling to reduce fees when the settlement is less than was expected.

When a plaintiff comes to us requesting funding, we consult with their attorney to make sure the size of the cash advance fits comfortably into the projected case value, regardless of their client’s wishes. By way of example, if a case has a projected case value of $50,000, a lawsuit cash advance, with projected profit, should not exceed 1/3 of potential case value. Therefore, any advance in which principal and profit exceeds $16,600 would not in the best interest of the client. Unlike many other funding companies, we will promise, in advance, to adjust our rates for compromised, unexpected results. Looking at the same, if Lawsuit Financial and the plaintiff’s attorney project a case value of $50,000, what happens if the case, for valid reasons that were not apparent at the time of projection and/or funding, settles for $30,000? Lawsuit Financial will adjust its principal and profit return to comfortably fit into the settled value of the case. Thus, in this example, principal and profit would be negotiated as close to 1/3 of the case results as possible. Lawsuit Financial also has a streamlined application and approval process. We can typically fund cases within 24 – 48 hours with minimal imposition on the attorney and their client.

We encourage attorneys and plaintiffs to contact Mark or one of our experienced funding specialists at 1-877-377-SUIT (7848) or visit us online.