Getting involved in litigation funding processes can be an intimidating experience for someone who is unfamiliar with legal procedures. It can also be a very expensive experience for everyone involved. From the attorney to the defendant’s insurance company, each entity involved in a lawsuit will likely spend on the filing motion for the lawsuit, defending or representing a client and strengthening their case, and much more. Not to mention that the plaintiff of a lawsuit may be suffering from injuries that require medical treatment that puts them out of work, causing further financial strain atop their living and legal expenses.
Because not everyone can afford legal processes as they occur, third-party litigation funding companies offer legal funding. Apogee Capital Partners LLC looks at what litigation funding is and why it matters so much to plaintiffs who need it and anyone supporting them in the legal process.
What Is Litigation Funding?
Litigation funding makes it possible for those who lack the necessary funds to issue and pursue a claim. An individual may be trying to litigate a claim due to personal injury at work, on the road, or a different kind of accident or wrongdoing.
The third-party litigation funder supports the plaintiff throughout their legal process, typically under the agreement that they will be repaid a portion of whatever settlement the plaintiff receives from the claim (should the claim have results that are favorable to the plaintiff’s party). In some cases, the third-party funder has no option to seek funds beyond the value of the determined portion of the settlement.
What Is the Difference Between Consumer Financing and Commercial Financing?
There are two major divisions in lawsuit funding: consumer financing and commercial financing. Apogee Capital Partners LLC explores the main differences between consumer and commercial litigation funding and explains another popular legal funding option that has gained traction with the help of social media, known as crowdfunding.
Consumer financing, also known as pre-settlement financing or plaintiff advances, usually remains within a $500 and $2000 fund but is not limited to that range. Pre-settlement funding assists plaintiffs in managing the expenses that accumulate throughout the litigation process, whether they be legal, medical, or living. This support helps plaintiffs make ends meet while their claim awaits a fair settlement.
Commercial litigation funding financially supports law firms and large businesses through legal cases. With commercial financing, companies can utilize quality attorneys before and after their commercial claims are settled in court.
Honorable Mention: Crowdfunding
A form of legal funding that has risen to popularity with the rise of social media is crowdfunding. With crowdfunding, a multitude of persons can contribute to covering an individual’s litigation expenses.
Crowdfunds can reach hundreds, thousands, and even hundreds of thousands of people to help support a person’s legal case. The thing that sets crowdfunding apart from consumer and commercial litigation financing is that those who contribute to crowdfunds often do so as a donation. Crowdfunding contributors are usually compelled to donate to a legal case they want to see result in a just settlement.
What Are the Benefits of Litigation Funding?
Now that we’ve explained what litigation funding is, let’s explore the reasons why it matters. Below are a few benefits of lawsuit funding for both consumer and commercial entities.
Covers Legal Fees and Ensure Legal Support
Legal professionals are a huge help to personal injury claims, but, of course, they must get paid. Without adequate funds, you may not be able to access the legal assistance and consulting that you need. Litigation funding helps those lacking the financial resources get the help they need. With access to an experienced attorney, you have a better chance at acquiring a fair settlement.
Supports Those Who Are on Leave From Work
In some cases, victims of accidents are left with injuries that prevent them from attending work. For individuals that live paycheck to paycheck, this unexpected disruption to their work schedule can cause extreme financial stress.
Pre-settlement funding relieves those who are on leave from work of much financial strain. With enough funds, individuals are able to seek the medical and legal care they need without having to fret over going bankrupt from not working or attending work while severely injured.
Prevents Businesses From Going Under
For some businesses experiencing ongoing litigation, commercial legal funding is the thing that keeps them afloat. With the help of cash advances, companies can afford the right legal team to consult and assist them on their legal case, no matter how long the process.
Allows Individuals To Access Essentials While Monitoring Their Claim
As mentioned, some folks have less of a financial cushion than others, so when unanticipated expenses arise, it can throw their life off balance. Litigation funding enables people who are financially unstable to pay for the essentials they need, such as groceries, electricity and gas, car payments, and more.
Helps Reduce Stress on All Levels
Whether your business or you personally are waiting on a claims settlement, litigation funding can help put your bank account and mind at ease. If you feel like you’re drowning in legal fees while awaiting a settlement check, it would be beneficial to pursue litigation funding in the meantime. To learn more about getting funding for your legal needs, read on. Apogee Capital Partners reviews how to acquire legal funding below.
How Can I Secure Litigation Funding?
The process to secure litigation funding for yourself or your company is fairly simple. You must apply to a legal financer, such as Apogee Capital Partners. The third-party funder that you apply to will then review your application. If further information or documentation is required, they will ask for it from you or your legal representative.
Once the prospective financer has received all the proper documentation, they will review your case with either yourself or your attorney if you have one. After everything is reviewed, the funding party will draft a litigation financing agreement for you to sign. The agreement will include the litigation funding amount, which will be provided upon completion of the agreement.
Finding a Third-Party Funder That’s Right for You
At Apogee Capital Partners LLC, we have a range of legal funding services to support a range of clients. From plaintiffs to attorneys and medical care professionals, we want to ensure everyone has the financial support they need throughout the litigation process. Acquiring a fair settlement is not always easy, so we know how important it is to have as much support as possible. Contact us today to learn more about how to receive a cash advance in as little as 24 hours.