If you’re a personal injury lawyer, chances are you know a thing or two about plaintiffs facing financial burden. Worst-case scenario? Your client agrees to accept the first settlement offer to pay off those immediate, daunting bills. This is especially true in lengthy, complex personal injury lawsuits.
Lawsuit loans can help prevent such consequences. While litigation funding is becoming increasingly popular, many attorneys wonder how they can support their clients during long cases. This guide will provide some clarity:
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SubscribeWhat is Litigation Funding Anyway?
Litigation funding, or legal financing, is a cash advance given to plaintiffs to cover essential everyday costs, medical bills, and other expenses associated with filing a personal injury lawsuit.
The funding can range from $500 to over $1,000,000, depending on the details of your case. Moreover, lawsuit loans are non-recourse in nature, which means your client only pays them back if they win or settle.
Reasons to Get Your Client Legal Funding
Here are four reasons client legal funding makes sense:
Immediate financial relief
Daily expenses and medical bills can quickly pile up when a plaintiff files a personal injury claim. Financial pressure, on top of severe emotional challenges, can lead to devastating situations. Litigation funding helps avoid such consequences. The funds can be used to cover both current and expected expenses, including:
- Mortgage or rent
- Utilities
- Medical expenses
- Educational expenses
The best part? Your client doesn’t have to worry about monthly payments, as is the case with traditional loans.
Empowers negotiation
When your client has a financial cushion in place, they are less likely to accept low-ball settlement offers. You will have the freedom to negotiate with the opposite party for a fair settlement.
No credit requirements
Litigation funding companies don’t impose credit requirements. Your client’s credit score or income won’t have an impact on their ability to acquire litigation funding. Reputable funding companies like USClaims consider the following factors:
- Case merit and strength of evidence
- Stage of litigation
- Estimated timeline to resolution
- Anticipated settlement value
- Jurisdiction factors
Peace of mind
The average timeline for a personal injury settlement is 1-3 years. Contested and trial-bound cases take longer. Litigation funding will give your clients peace of mind, allowing them to pursue their case with confidence.
Benefits For Your Practice
Suggesting or acquiring litigation funding for your clients can also benefit your law firm. For instance:
- Funding can speed up the case. It will cover litigation expenses like expert witnesses, depositions, and discovery, ultimately strengthening your case.
- Litigation funding ensures cash flow. For law firms that work on a contingency-fee basis, lawsuit funding provides the funds needed to focus on complex cases.
- It comes under ethical assistance. The law restricts personal injury attorneys from lending money to plaintiffs (and for good reason). But you can get your client from a third-party company. By providing ethical assistance, you can build trust among your clients and also strengthen your industry reputation.
Help your clients acquire legal funding and pave the pathway to fair compensation.
