The Difference Between Legal Funding & Lawsuit Loans
When a client is facing a lawsuit, they often come across the choice between taking out a loan or obtaining lawsuit funding. The situation can vary based on numerous circumstances. A plaintiff may be short of cash to begin with. Aside from legal fees, they may be dealing with personal injuries that prevent them from working and earning a salary.
So, what is legal funding and why is it more advantageous than a loan?
Firstly, a loan is borrowed from a lender or financial institution such as a bank. You are expected to pay back the principle and interest until the loan is fully repaid. The process of approval is often complex. For example, a bank must check your credit history, income sources, and personal assets. A house, car, or other collateral must be attached to the loan, while a bad credit score can affect your eligibility.
If the loan is not repaid, you can be fined or sued. It can severely damage your credit and your property may be subject to lien or repossession.
How Legal Funding Works
Our legal funding in Los Angeles, on the other hand, is a cash advance. It’s a form of pre-settlement funding with no fees and no promise needed to pay it back. Taken from future earnings, the cash comes directly from the legal funding company, which is not paid back unless your case wins. Lawsuit funding does not require a credit check, collateral, or strict deadlines and payback plans.
A legal funding company looks at the facts of your case. It will review these with your attorney to determine whether your case has a strong chance of winning, based on liability, damages, and insurance coverage. The strongest cases are those involving physical or wage loss claims and when one party is likely at fault for an event or condition that caused injury or damage.
Obtaining legal funding is also much simpler than with a loan. The circumstances of your case are discussed between your attorney and the lawsuit funding company, which employs an underwriter to review paperwork and determine how much of a cash advance to approve you for. FCA Legal Funding makes it simple. Just provide your name/number/email, your attorney’s contact information, and submit the form to our team.
Legal Funding in California
FCA Legal Funding serves the entire state with a Financial Relief Program to cover a plaintiff’s everyday expenses. The cash advance is paid back when a settlement is won. Financial constraints therefore don’t have to pressure you into settling a lawsuit too soon for too little. We make sure you get the settlement you deserve, thanks to our extensive knowledge, experience with state law, and understanding of insurance companies.
To apply now for legal funding in Los Angeles, submit your details on our website and we’ll review your case at no charge. You can receive a personal injury lawsuit cash advance within 24 hours after we consult with your attorney.