Lawsuit Funding Information and Options
By Aaron Larson
Lawsuit funding implicates two possible sources of revenue: First, there is a traditional loan, secured perhaps by traditional collateral or a lien on any lawsuit proceeds, with set terms and a contractually defined rate of interest. Second, lawsuit funding may come in the form of "venture capital", in which a lending company advances money secured by any eventual verdict or settlement. This second type of lawsuit funding is typically non-recourse funding, meaning that you only pay the advance back if you eventually do recover money for your case, and typically carries significant fees, We offer four articles which may help you understand your lawsuit funding options.
Describing legal and ethical issues associated with lawsuit funding, particularly non-recourse advances against the proceeds of a lawsuit, and considering when non-recourse funding should be considered by a plaintiff in an injury lawsuit.
Non-recourse advances are not the only option available to an injured person in need of money. This article describes possible alternative sources of lawsuit funding, and factors to consider when selecting a source of funds.
Detailing the type of advance of funds typically described as a "lawsuit loan", how this type of funding differs from a traditional loan, and giving tips on finding the best possible deal if you choose to pursue this type of lawsuit funding.
Describing issues that should be of concern in obtaining any sort of lawsuit funding, and questions to ask the financing company which can help maximize the amount of any loan or advance while minimizing costs and fees.
Choices about lawsuit funding solutions should be taken with great care, and you should consider all other potential sources of funding. If you decide to pursue a loan or advance through a lawsuit funding company, be sure to consult several companies so you can obtain funds while paying the lowest possible fees.
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