Post-Settlement Funding For Litigation & Lawsuits
Get StartedHow Post Settlement Funding Can Help Plaintiffs in Need
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.
Litigation Financing FAQ
Answers to some of our most commonly asked questions.
Pre-settlement funding is provided before the settlement is finalized, while post-settlement funding is provided after the settlement has been reached.
The duration of the process varies from one funding company to another, but it often takes less than a week from the time the application is approved.
In the case that the pay-out from the settlement is lower than the post-settlement funding provided, the funding company cannot lay claim to the difference.
No, funding companies do not require any collateral since the funds are based on the plaintiff's expected settlement payout.
Anyone who has an expected settlement payout can apply for post-settlement funding.
Yes, funding companies do not place a lot of importance on the plaintiff's credit history since the repayment is based on the anticipated settlement payout.
