Successful Legal Funding Applications are Possible – Learn How
Legal battles take time, and this time lag can become a significant hurdle for plaintiffs seeking justice. Legal funding, also known as litigation financing or settlement loans, is a potential solution. Legal funding provides financial support to plaintiffs so they can meet their expenses while they wait out the process. Successful legal funding applications depend upon a variety of factors.
Securing lawsuit loan approvals are not always easy and straightforward. In this post, we examine 5 tips for successful legal funding applications and approvals.
Understand Legal Funding
Before applying for legal funding, ensure you have a comprehensive understanding of legal funding and the lawsuit loan process. Legal funding is selling a portion of a future settlement for immediate cash. In return, the plaintiff pledges a portion of the recovery depending upon how long the case needs to resolve and whether the case is won. Because legal funding contracts are contingent upon a successful outcome, these transactions are considered “non-recourse” funding. That is, repayment comes from the settlement itself, not from the plaintiff personally. If the case is lost, so is the lawsuit lender’s investment.
Understanding legal funding can help with successful legal funding applications since a potential client understands the nature of the transaction. With this knowledge, plaintiffs can better understand the next 4 tips.
Understand Your Case
Successful legal funding applications means understanding what lawsuit funding companies are looking for as investments. Lawsuit lenders are looking for the following:
- Plaintiffs with a strong liability claim
- Plaintiffs with a retained attorney on a contingency fee basis
- Plaintiffs who were significantly harmed by the defendant (damages)
Since lawsuit funders are only compensated if a case is successful, it is not surprising for them to look for cases with a strong likelihood of success. Strong liability and damages are the nuts and bolts of a lawsuit. Representation by a contingency fee based attorney adds another layer of probability to a lawsuit funding investment since attorneys are unlikely to invest their time and money in a lawsuit that will not generate a fee for their firm.
Understanding that certain lawsuit types are better candidates for funding than others will get you ahead of the game when trying to secure a successful legal funding application.
Choose the Right Funding Provider
Not all legal funding providers are the same. So successful legal funding applications can depend upon who you are applying with. Learning how to shop for lawsuit loans can be an extremely cost effective use of your time. Research and identify reputable and experienced funders who specialize in your type of case.
Consider factors such as costs, fees, and legal funding rates. Make sure all the terms and conditions are clear. The best legal funding contracts are free from hidden fees and clearly state repayment amounts in the agreement.
It’s crucial to choose the best lawsuit funding company so that your advance cost and terms are fair. You should choose a funding company who understands the complexities of your case and can offer tailored financial solutions to meet your needs. This is not hard to accomplish and will be time well spent.
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Successful Legal Funding Applications Need Accurate Information
Providing accurate information can go a long way in a successful legal funding application. During the initial screening, lawsuit lenders gather all the information they need. Remember, your goal and the goal of the legal funding company are the same: a successful legal funding application. Since approvals are wanted by both parties, making it easy on lawsuit lenders can help your cause.
Make sure you provide your lawyer’s full name, name of the firm, address, and phone number. Also make sure you accurately detail the date of accident, the type of medical treatment you received or a measure of the damages you sustained. Remember, information is crucial to lawsuit loan underwriters. Most often, a representative will need to speak with the attorney to gather information about the lawsuit’s strength and the approximate amount of any potential settlement. Plaintiffs should provide accurate information to ensure no delays in getting same day approval for a lawsuit loan.
Effective communication is key to a successful legal funding application. Be responsive to inquiries from potential funders and maintain open and honest communication throughout the process, addressing any concerns or questions that may arise. Building a strong relationship with your funding provider can lead to a smoother funding process and a successful outcome.
Attorney Cooperation – Successful Legal Funding Application Key
Attorney cooperation in lawsuit funding is the master key to successful legal funding applications. Attorneys are an integral part of the legal funding process since they:
- usually provide the required case documents.
- participate in the underwriting process.
- must sign off on the agreement itself.
- are responsible for repayment in the event of a successful recovery.
In years past, many lawyers were reluctant to take on these responsibilities for their clients. This is understandable since successful legal funding applications were not part of their job description. The good news is that legal funding has matured and the entire process is streamlined. This means that attorney participation is less intrusive on their time. When it comes to legal funding approvals, attorney cooperation tops the list. So helping your attorney with your settlement loan can go a long way to a successful legal funding application.
Securing Successful Legal Funding Applications
Successful legal funding applications require just a few ingredients. Understanding your case, legal funding, and choosing the right funder can all go a long way to securing legal funding. Being clear and accurate with the information you provide also contributes to success. These four ingredients are well within the control of most plaintiffs. Attorney cooperation then is the missing ingredient but can make all the difference in successful legal funding applications.
By following these five tips, you can enhance your chances of obtaining the financial support needed to pursue your legal case successfully. With diligence and perseverance, you can navigate the legal funding landscape and secure the resources necessary to achieve a favorable outcome in your case.
