Pre-settlement funding helps plaintiffs cover their bills while awaiting a personal injury settlement. However, a law firm’s clients aren’t the only ones who can benefit. A lawsuit involves many steps and can require a significant amount of capital. We’ll look at the advantages of pre-settlement legal funding for law firms and some of the basics of a non-recourse cash advance.
How Law Firms Benefit from Pre-Settlement Funding
Helps Manage the Cost of Litigation
Litigating a case can take weeks, months, or longer. During that time, a law firm must deal with administrative costs. Attorney’s fees, expert witness fees, court filing fees, arbitration fees, and other costs also factor into preparing and presenting a case. Most personal injury clients don’t have the cash to pay an attorney upfront. But pre-settlement funding covers a law firm’s expenses while a settlement is pending.
Reduces the Risk Regardless of Case Outcome
Losing a case is detrimental to any law firm that’s invested a lot of money in litigation. Pre-settlement legal funding for law firms reduces this risk because the advance is non-recourse. If litigation is unsuccessful, lawsuit funding deflects associated costs, as the lender isn’t paid back if the case loses. Firms can pursue more cases and allocate capital to essential business activities.
Avoids the Pressure of Settling a Case Early
Without adequate capital, a law firm can be pressured to settle a case early or may not be able to take the case on at all. Financial support is essential. Attorneys and law firms must often work against defendants and insurance companies with a nearly unlimited amount of resources. No matter how meritorious a claim is, a better-equipped defense is often a primary barrier to obtaining justice.
Attorneys Can Provide Higher-Quality Service to Clients
Pre-settlement funding reduces the pressure to settle a case too soon. That would almost certainly mean agreeing to a lesser amount than the client should get. Attorneys can take the time to build the case and pursue the best possible outcome. The firm can build better relationships with clients and communicate more effectively since there is less financial pressure.
Firms Can Build the Reputation and Businesses
Law firm staff can put more time and effort into building a high-quality case. With more satisfied clients, it can grow a list of favorable reviews. These clients are also more likely to refer the firms’ legal services to others. A solid reputation can help a law firm grow and serve more clients at once, plus work with a broader range of cases.
Pre-Settlement Legal Funding Is Safe
The legal funding industry has matured, and plaintiffs and law firms have lots of options. Many states limit the interest and fees a funding company can charge. A borrower can apply for funding if a case goes longer than expected. Oftentimes, they can request and be approved for a second or third cash advance. Best of all, the funds are repaid only if the case wins, directly out of the settlement proceeds.
Apply Today with Fund Capital America
We can provide the funding to secure your firm’s budget and increase its spending power. An insurance company’s resources will no longer be a hindrance to pursuing a fair settlement for your clients. Apply for a lawsuit cash advance online in minutes and receive your funds in as little as 24 hours. To learn more about pre-settlement funding for law firms, call (855) 870-2274 today.