Litigation Finance also known as pre settlement funding or pre settlement loans to people across the United States.
Litigation funding is often referred to as “loans” but in fact they are advances against a pending lawsuit.
The reason that there is no credit check and credit is not a factor in the evaluation of your case is because it is an
advance against your potential settlement. In addition, American Pride Legal Funding do not evaluate your employment history in order to approve you.
Insurance companies don’t want you to know that lawsuit loans or lawsuit settlement advances are available and readily accessible to
plaintiffs with solid personal injury claims. When you’re pursuing your claim, you’re probably not working if you were injured. Insurance companies
know this and try and delay the settlement process to put pressure on you to accept a lower amount because they know you
are having financial difficulties and seriously hurt. Litigation finance and pre settlement funding is available to help you fight for a
fair settlement. You don’t have to accept a low ball offer from your insurance company.
Litigation Finance vs Traditional Loans
As we mentioned, litigation funding loans, aren’t really loans at all. Many companies make lawsuit cash advances and we are only concerned with the
value of your case. As a pre settlement funding company, we are betting that your claim has value and your ultimate settlement will be
sufficient to cover the amount advanced to you plus interest cost.
The number of lawsuits has grown exponentially over the years.
Traditional loans are based on credit and that is why your credit and employment history is important for a traditional loan.
The lender does not have any collateral for instance when issuing a credit card.
Third Party Litigation Funding
Litigation finance is a new asset class where institutional investors invest in ongoing and settled litigation by essentially buying a piece of potential settlement for a multiple or fixed rate of return if the case resolves successfully. Litigation finance refers to funds sourced from insurance markets or capital markets instead or in addition to the litigant’s own funds. Litigation funding offers litigants an opportunity to bring cases with merit against well funded clients which they would otherwise be unable to pursue. A specialty finance company or a hedge fund advances monies to a plaintiff and pays the lawyer costs on an interim basis… if the case resolves successfully then you pay a contingency fee out of the damages that is usually capped at 1-3 times the funded amount. The client contracts directly with the funder and Law Firm SEO. Funders can range from former contingency fee lawyers to large institutional investors like Allianz and Swiss and German banks.
Litigation Funding and the Global Market
The United States is a new market for litigation funding. Other jurisdictions have been well developed in the UK and Australia.