Legal procedures tend to get costly. Whether you’re involved in a legal case due to a work or car accident, understanding the benefits of litigation funding can allow you to determine if it may help your case. Apogee Capital Partners covers what litigation funding is and how it can support different entities involved in the legal process.
Litigation Funding Explained
When a plaintiff or their lawyer pursue a claim, they may utilize a third-party litigation finance firm to support them throughout the legal processes until lawyers reach a settlement agreement. Funders provide a cash advance of a specified amount after reviewing the plaintiff’s case and under agreement that the plaintiff will repay them a portion of their settlement.
Most litigation funding processes are nonrecourse, meaning the third-party cannot seek money beyond the settlement portion that they agreed on. If plaintiffs do not acquire a settlement, third-party funders may not receive any money.
Benefits for Plaintiffs
When it comes to understanding the benefits of litigation funding, plaintiffs are the most at an advantage. Acquiring a cash advance relieves plaintiffs from immense financial stress while awaiting their settlement money. Litigation funding may offer relief for general living expenses, medical bills, and legal fees.
Benefits for Medical Care Providers
Not all accident victims have the means to pay for the necessary medical care following an accident. If the accident’s victim is eligible for a personal injury claim, then a cash advance can help them achieve the care they need and support the medical care providers.
Litigation funding enables patients to pay for medical expenses, which in turn allows medical workers to provide their service without worrying about a lack of payment.
Benefits for Legal Firms
Litigation funding helps legal firms keep their practice afloat while still providing the legal support their clients need. Reaching a settlement agreement can take time and money. Attorneys may need legal funding to ensure they can create the best case for their client while keeping the rest of their firm’s operations in motion.