Lawsuits are seldom expected. There may come a time that you need to follow through on a lawsuit without the necessary funds in your bank account. Luckily, lawsuit funding companies can help you pay for the case and the many expenses occurred during the legal process.
Speak with Your Attorney
Before you attempt to finance your lawsuit, consult with your attorney about the nature and extent of their fees. Most lawyers will offer you a consultation before they start charging for their time. You need to be fully aware of all of the costs associated with your lawsuit.
Your attorney may recommend a financing company that they like to work with. Although you should definitely consider this option, don’t be afraid to shop around for the best interest rate. Your financial matters should always remain within your control.
Most financing companies will require several documents from your lawyer before they will approve a loan. These include a retainer agreement and case-related documents. Speak with both the financing company and your attorney to gather all of the documents you need.
Finally, don’t forget to consult with your accountant. They may be able to offer advice and help you understand the details of your loan.
Choose Between Commercial and Consumer Financing
A lawsuit funding company can focus on either consumer financing or commercial financing. Consumer legal financing is for individual litigation cases. These companies offer standard loans with an interest rate that can depend on the length or nature of your case. These loans usually consist of a small cash advance meant to cover living expenses for the duration of the case.
Commercial legal financing is intended specifically for legal fees and costs. These companies help businesses and individuals pay for their attorney, court fees, and related expenses. The nature of this financing will depend on your specific case.
Consider the Duration of Your Case
The interest rate offered on your lawsuit funding lasts for the duration of your case. After the case, your legal award will be used to pay off both the loan and the interest, with the remainder returning to you.
Ask your attorney how long your case is expected to last. Lawsuits can last only a few months or stretch on for years. Use this information to decide if you’re looking for an annual or monthly interest rate and determine what financing plan you can reasonably afford.
Complete the Application Process
The process of lawsuit funding typically includes a consultation with your lawyer; a consultation with the funding office; an application followed by a waiting period; and a final decision made by the funding company.
If you’ve chosen the right lawsuit funding company and properly completed your application, you should be able to secure funding for your case. Make sure you follow all steps of the process and check in if you haven’t heard back within a reasonable time frame.
Lawsuit funding is a necessary service that will assist you in completing a legal battle. Choose a reputable lawsuit funding company that will benefit from your legal and financial success.