Post-Settlement Funding For Litigation & Lawsuits

Settlements are often a welcome relief for individuals who have suffered personal injury or financial loss. However, the time-consuming nature of legal proceedings means that settlement payouts may take longer than expected. This is where post settlement funding comes in – a service that provides funds to plaintiffs waiting for their settlement payout.

How does Post Settlement Funding work?

Post settlement funding allows the plaintiff to access a portion of the settlement money before the payment is received from the defendant. Funding companies provide the funds and can recover them from the settlement proceeds later. In other words, the plaintiff gets the cash they need, when they need it most.

The benefits of Post Settlement Funding

One of the primary advantages of post settlement funding is the prompt payment option. This is particularly advantageous when plaintiffs are facing financial hardships, such as paying medical bills or making mortgage payments. The funds are also non-recourse, meaning that the plaintiff does not have to repay the money in the event that the settlement fails to provide the expected pay-out.

The downside of Post Settlement Funding

The cost of post settlement funding can be high. The interest rates are often significantly higher than traditional bank loans. Additionally, because funding companies take on higher risk, their fees may be higher. It is essential to consider the cost implications before taking out post settlement funding, and only do so if it is the best option available.