Legal funding, sometimes referred to as litigation funding or lawsuit financing, is a financial service that provides plaintiffs with the necessary funds to cover legal expenses and personal needs while their lawsuit is ongoing. This type of funding allows plaintiffs to pursue their claims without the financial strain that can often lead to premature settlements for less than the case’s potential value. By leveraging legal funding, plaintiffs can ensure they have the resources to see their case through to a fair resolution. The legal funding landscape is broad, encompassing various types of funding tailored to different needs and circumstances.

Categories of Legal Funding

Legal funding can be broadly classified into two main categories: pre-settlement funding and post-settlement funding. Each type serves a distinct purpose and is suited to different stages of the litigation process.

Pre-Settlement Funding

Pre-settlement funding is designed for plaintiffs who need financial assistance while their case is still pending. This type of funding is particularly useful for individuals who are unable to work due to their injuries or for those facing mounting medical bills and living expenses. Unlike traditional loans, pre-settlement funding is non-recourse, meaning that if the plaintiff does not win their case, they are not obligated to repay the funds. This feature makes pre-settlement funding a safer option for many plaintiffs. Pre-settlement funding can be further broken down into two main subsets:

Consumer Litigation Funding: Consumer litigation funding specifically caters to individuals involved in personal injury cases. Common cases that qualify for consumer litigation funding include car accidents, medical malpractice, slip and fall incidents, and product liability cases. The goal is to provide plaintiffs with the necessary funds to cover daily living expenses, medical bills, and legal fees, ensuring they can maintain their quality of life while pursuing their legal claims.

Commercial Litigation Funding: Commercial litigation funding, on the other hand, is geared towards businesses engaged in legal disputes. This type of funding supports cases such as breach of contract, intellectual property disputes, antitrust litigation, and trade secret theft. Commercial litigation funding helps businesses manage the high costs associated with complex legal battles, allowing them to pursue their claims without depleting their operational funds.

Post-Settlement Funding

Once a case has been resolved and a settlement has been reached, plaintiffs may still face a waiting period before they receive their funds. Post-settlement funding provides immediate cash to plaintiffs during this interim period. This type of funding can be especially beneficial for those who have already incurred significant expenses during the litigation process and need quick access to their settlement funds.

- WHAT CLIENTS ARE SAYING -

In June, my wife and I asked our attorney about giving us a loan against any settlement proceeds from our case. He told us that the state bar does not

permit lawyers to participate in the financing of clients. The offer of settlement was very low so the case needed to be filed in court. I called Fast Funds. Within 24 hours, I had entered into an agreement with them, selling a very small portion of the anticipated proceeds to them in exchange for immediate financing. Now my suit is in court and I don't have to worry about money until it's outcome. Thank god for Fast Funds

B.G.

As a result of the advances you have made to our client, we were able to refuse an extremely low settlement offer and take the case to court. We settled the day of the trial for a very generous sum. Had there been no advances by Fast Funds, our client would have had no choice but to accept the inadequate offer since he was in severe debt due to his inability to work. Thank you for your helpful assistance in providing our client with the ability to persevere.

C.F.

I was involved in an accident which took my left leg. I was forced to live homeless for eleven months. Thanks to the Fast Funds people advancing money. I now live in an apartment,I am walking on a prosthetic and otherwise getting my life back together, even though my attorney has not yet settled my lawsuit. I don't know what I would have done for money because the insurance company has offered nothing so far.

A.R.S.

I was involved in an auto accident which caused me to suffer a herniated disc. Because of this injury, I was forced to miss many months of work. I had no income and no place or person to turn to for money. My attorney told me he was unable to help with any financing and the insurance company was refusing to settle the case. I turned to a company called Fast funds. They immediately reviewed my file and took the financial pressure off by providing me with interim financing. I am now able to wait for as long as it takes for my lawyer to achieve a successful result in my case. Without the financial involvement of Fast Funds, I don't know what I would have done.

K.P.

I wanted to thank you for your sensitivity in helping me cope through a very difficult time in my life. Without your help, I would have been unable to pay my rent , forcing my wife and children to be put on the street. I have not been able to return to work and I was tempted to accept the insurance company's very low offer to settle, even though I knew it was not fair or reasonable. You have given me the ability to withstand the financial pressures. Thanks for your help. I will never forget it

C.S.

I have in the past referred clients to Fast Funds Inc., a non-recourse company. The experience of my clients

and my firm were totally positive. Fast Funds was responsive to the clients financial and emotional needs, provided the necessary emergency money and did not interfere in any manner with my handling of the cases. The clients, without my input, negotiated the advance directly with the company. In each case, they were completely satisfied with the final result of the case, including the amount of profit earned by Fast Funds. Non-recourse funding is clearly a valuable tool to the plaintiff's attorney.

M.J.L.

"I am writing to recommend the valuable assistance of the Fast Funds Inc., a company that provided interim funding to financially needy clients. They help to insure that a case will be brought to a successful resolution. A good case in point is when I was offered $75,000.00 for a seriously injured client. Had she not been able to take advantage of the advance financing offered by Fast Funds, I would have been forced to take the money. As it turned out, because my client now had the financial ability to withstand the pressures of time, I tried the case to a jury and received a verdict of $315,000.00.

M.S.D.

It is my belief that non-recourse companies, such as Fast Funds, the company to whom I refer my needy clients, perform an invaluable service to both the client and the attorney. Simply put, it is common knowledge that one of the tools negotiation utilized by insurance companies is time. Offering

considerably less money than the actual case value to a client in desperate need of funds while the case is pending, gives the insurance companies a tremendous advantage. This advantage is minimized and the playing field is leveled when the client has the ability to obtain funds for a minimal portion of the anticipated proceeds. Many times, with no prospects of income, an injured party will settle the case for whatever offer is made.

R.J.F.

Structured Settlement Funding

Structured settlements are agreements in which a plaintiff receives periodic payments instead of a lump sum after winning a lawsuit. While this arrangement can provide long-term financial stability, there may be times when a plaintiff needs immediate cash. Structured settlement funding allows plaintiffs to sell a portion of their future payments in exchange for a lump sum, providing them with the flexibility to address urgent financial needs.

The Mechanics of Legal Funding

Understanding how legal funding works is crucial for plaintiffs considering this option. Legal funding companies assess the merits of a case and the likelihood of a favorable outcome before providing funds. The amount of funding offered typically depends on the estimated value of the settlement. Plaintiffs can use these funds to cover various expenses, including legal fees, medical bills, and daily living costs.

Non-Recourse Funding

A key feature of legal funding is its non-recourse nature. Unlike traditional loans that require repayment regardless of the outcome, non-recourse funding means that plaintiffs only repay the funds if they win their case. This arrangement shifts the financial risk to the funding company, providing plaintiffs with peace of mind and the ability to focus on their legal battle without additional stress.

Pros and Cons of Legal Funding

While legal funding offers numerous benefits, it’s essential to weigh these against potential drawbacks to make an informed decision.

Advantages of Legal Funding

Legal funding provides plaintiffs with the financial support needed to cover essential expenses during the litigation process. This support can alleviate the pressure to settle early for a lower amount. Additionally, because legal funding is non-recourse, plaintiffs do not bear the risk of repayment if their case is unsuccessful. This arrangement allows them to pursue their claims more confidently.

Disadvantages of Legal Funding

One of the primary drawbacks of legal funding is its cost. Funding companies charge interest and fees that can accumulate over time, potentially leading to significant repayment amounts. It’s crucial for plaintiffs to thoroughly understand the terms of their funding agreement, including any hidden fees or compounded interest rates. Furthermore, not all cases qualify for legal funding, as funding companies carefully evaluate the merits and risks associated with each case.

Regulation and Transparency in Legal Funding

The legal funding industry is not uniformly regulated, which can lead to variations in the terms and practices of different funding companies. Some states have implemented regulations to protect plaintiffs, but others have not. It’s important for plaintiffs to work with reputable funding companies that are transparent about their terms and committed to ethical practices. Consulting with a legal advisor can help plaintiffs navigate the complexities of legal funding and choose the best option for their situation.

Choosing the Right Legal Funding Company

Selecting a reliable legal funding company is crucial for plaintiffs seeking financial assistance. Key factors to consider include the company’s reputation, transparency of terms, interest rates, and overall customer service. Plaintiffs should research potential companies thoroughly, read reviews, and seek recommendations from their legal advisors. A reputable company will provide clear and understandable terms, ensuring that plaintiffs are fully aware of their obligations and the total cost of the funding.

Legal funding offers a valuable lifeline for plaintiffs facing financial difficulties during the litigation process. By understanding the different types of legal funding and their respective advantages and disadvantages, plaintiffs can make informed decisions that best suit their needs. While legal funding can provide crucial support, it’s essential to carefully consider the terms and choose a reputable funding company. With the right approach, legal funding can help plaintiffs pursue justice without the added burden of financial stress.

Fast Funds is committed to providing transparent, fair, and supportive legal funding solutions. By understanding the nuances of different types of legal funding, we aim to empower plaintiffs to make the best decisions for their unique situations. Our goal is to offer financial stability during challenging times, enabling plaintiffs to focus on achieving the best possible outcome for their cases.

Contact Fast Funds today to learn more about how our legal funding services can provide you with the financial relief you need during this challenging time. Call us or visit our website to get started. Let Fast Funds help you focus on winning your case without the burden of financial stress. Reach out now and take the first step towards a fair settlement.

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Funding Terms

Understanding the Different Types of Legal Funding