There are a lot of people who will tell you that litigation funding “Can’t possibly be as good as it seems,” or that “It’s too good to be true.” When you offer a service that seems mind-bogglingly great, it’s no surprise that misinformation will crop up from time to time. We’re here to clear the air with the truth behind three common litigation funding myths.
You Must Pay Back Your Pre-Settlement Loan No Matter What
When you take out a loan from a bank to open a new coffee shop, you’re expected to pay back the loan (plus interest), under any circumstances. This means that you’re still responsible for repayment whether your coffee shop explodes or fails to attract customers. That is not how litigation funding works.
Litigation funding is non-recourse funding. Basically, that means you don’t need to repay a dime if you don’t win your settlement. In other words, unless you are awarded the money you need to repay your pre-settlement loan, you are not expected to repay.
Litigation Funding Comes With a Lengthy Application Process
Again, loans in general have given a bad name to litigation funding. While your bank may require you to fill out a novel worth of forms and wait around for weeks to hear an answer, litigation funding happens in a flash. Most applications can be completed in under 15 minutes, and you’ll hear back about your loan in as little as 24 hours.
Litigation Funding Makes Cases Drag On Longer
It’s a reasonable assertion that plaintiff legal funding would cause cases to last longer in court. You might think this because, with more money, you can afford to tussle with expensive lawyers for as long as is needed. However, many defendants want to wait you out.
When they see that you have enough funding to make the court case last a long time, defendants often feel more inclined to settle then and there. So, in many cases, litigation funding can actually reduce your time in court.
Now that you know the truth behind three common litigation funding myths, contact Apogee Capital Partners to learn more about pre-settlement funding for your case.
