Lawsuit funding loans are designed to help people tap into the money they expect to receive when their lawsuit settles. New lower rates are available in certain circumstances.
Fort Lauderdale, United States - July 10, 2015 /PressCable/ —
Lawsuit funding loans are designed to allow a plaintiff in a lawsuit to borrow a portion of their expected settlement in advance of the conclusion of their case.
While the lawyers negotiate a settlement in a lawsuit, in many instances the plaintiff has incurred expenses, has lost time at work and in many cases lost the ability to work for extended periods of time. Obviously, this puts the injured party in a dire situation. Some cases can take months or even years to settle. Unable to take care of their families and pay their bills, lawsuit funding loans can help bridge the gap until the case is settled.
According to a news article in the New York Times, the lawsuit funding industry advances more than $100 million each year to distressed plaintiffs awaiting lawsuit cases. Interest rates for lawsuit funding are based on the merits of the case. The rates are ascertained strictly by the lender’s perceived risk, and in maximum-risk cases, interest rates can reach as high as 70 percent.
“Pre-settlement funding is a unique type of loan” says David Cooper, Chief Executive at Interstate Lawsuit Funding in Fort Lauderdale, Florida. It requires no tangible collateral. The loan is made on the merits of the case. “The money we loan is repaid only in the event of a successful outcome. We only get paid at the conclusion of the settlement. There’s not even a credit check. What matters most is the case. If we believe the case will win, we will loan the plaintiff money.”
The most common cases which qualify for a lawsuit cash advance fall under the category of personal injury. These are cases such as, auto or motorcycle accident injuries, slip and fall, injuries cause by negligence or defective products, medical malpractice and nursing home neglect. Others could be wrongful termination, class action suits, discrimination or wrongful death.
Just as rates vary for auto loans and home loans, so too do rates vary in the world of lawsuit funding loans. Mr. Cooper adds, “Rates for borrowing money are going to be higher with higher risk circumstances. This is a universal truth in the money-lending business. Entering into a loan as a partner with the plaintiff is the key to a happy outcome. Sometimes plaintiffs see a big payday and want to borrow a large percentage of their expected settlement. This is risky. If the case drags on, the interest can accumulate and eat up the settlement cash. Smaller loans are safer.”
Lawsuit funding rates can run as high as over 70% due to risk factors. Generally, these loans are short-term and the amounts are fractional against the overall settlement so the funding company makes money and the plaintiff’s need is satisfactorily satiated. Everybody wins.
Lower rates are achieved with lower risk. David Cooper explains, “The quality of the communication is a key element. A thorough understanding of the case is essential both from the plaintiff’s perspective and from their attorney. The less risk the lender perceives the lower rate he’s likely to quote, therefore it’s wise for plaintiffs to seek their lawyer’s strict cooperation.
It’s not unusual for cases to settle and the plaintiff’s money is still put on hold for a matter of weeks or months. Interstate Lawsuit Funding offers a special rate as low as 1.5% for these circumstances.
Interstate Lawsuit Funding offers pre-settlement cash payments to help litigation plaintiffs bridge financial gaps prior to case conclusion. Company headquarters are located in Ft. Lauderdale, Florida, and Interstate Lawsuit Funding makes advance cash payments across 46 U.S. states and Washington D.C. with no tangible collateral and no credit checks.
For more information about us, please visit http://interstatelawsuitfunding.com/
Name: Andrew Mazer
Organization: Interstate Lawsuit Funding, LLC.
Address: 5100 N. OCEAN BLVD UNIT 1618
Release ID: 85832