Are you fighting over a legal case and you are expecting compensation from the opposition? If the answer is yes, but you are doubtful about the continuation of the case, due to financial instability, don’t get disheartened. Here comes a remedial solution. Have you heard about the Lawsuit Loans? Yes, it’s about funding the clients or organisations fighting for lawsuits having a monetary claim. Then the question arises what actually it is. It is a type of non-recourse funding where you may don’t have to pay because the loan is repaid if and only when the plaintiff owns the case. You have to pay back the loan after you get money from solving of your litigation. You have to deposit the advanced money or the loan amount plus the interest charged on the amount. In some cases the funding agency may demand for a certain amount of money based upon the money you will receive. The lawsuit funding organisation decides about the rate of interest and their decision to fund you after seeing your case. They assess your application by judging your chance of winning and the amount to be received as compensation.
Now, you must be thinking what may be the profit of the organisation funding for the litigation. In some cases, if the applicant loses the case, the funding agency also loses, as the applicant doesn’t have to repay the amount taken as loan. Surely there is risk in this business. But if they play according to their experience, identifying cases having more chances of win, they can have a commendable profit. With the high rate of interest charged over the Lawsuit Loans, they earn a good amount. Previously, the rate of interest was nearly 10% per month when the business started 20-30 yrs back. But with time the competition grew and presently it may vary between 2.5%-5% per month.
The association of funding agencies decides about it and set a profitable mark. If hearing of your verdict takes a longer time than the anticipated one, then also you have to bear the high interest rate. The money you get as compensation from the accused in a legal case is known as Settlement money. The lawsuit funding agencies help you to continue your journey till you get your Settlement Funding. They help to meet the expenses of legal proceedings and other unavoidable costs during the trial of the case.