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Things to Consider When Your Client Seeks Lawsuit Funding-Part V: Is the Legal Finance Obligation Excused if you Lose Your Personal Injury Case?

This fifth legal funding tip in our series of Things to Consider When Your Client Seeks Lawsuit Funding is an extremely important consideration. It is also the feature that tends to make lawsuit financing (if litigation resolves successfully) more expensive than traditional loan products. Some legal finance Industry competitors use the term “lawsuit loan” to describe their product or service. A “loan” by definition, in all States, involves an absolute right to repay the obligation; it is not excused, even if the first choice collateral fails. So, the question is:

5. Does the lawsuit funding company provide its funds contingent upon the outcome of the litigation?

Most lawsuit financing companies provide legal funding to clients and attorneys on a non-recourse basis. This means that repayment is contingent upon the outcome of the client’s litigation. Thus, if the case fails, so does the repayment; the client gets to keep the lawsuit finance company’s money without obligation to repay. Many attorneys have complained about the cost of litigation advances, however, they need to consider the following: A superior litigation finance company invests its money in cases it has no control over, through attorneys it has (usually) no prior relationship with, for clients it has never met. Then, remarkably, it completely excuses the obligation if the case fails. Further, the superior legal finance company will also compromise its return as settlement or verdict circumstances require. Is it any wonder that a successful advance carries a somewhat expensive price tag?

Thus, most legal finance products are not lawsuit loans (despite the use of that terminology by industry competitors). Client credit-worthiness is not an issue; there are no credit checks and no monthly payments to make. No payment of any kind is required until the funded case is successfully resolved. If the legal funding company you are contemplating doing business with does not provide its service to your clients, contingent upon the outcome of the funded case, you might wish to consider another legal finance company.

Lawsuit Financial Corporation provides legal funding to litigants who have retained an attorney and filed Auto Accident, Premises Liability , Medical Malpractice, Construction Accident, Products Liability, Dog Bite, Airplane Crash, Train Crash, Employment or other personal injury lawsuits. We do so completely contingent upon recovery and in a sensible and compassionate way, in the best interests of plaintiffs, their attorneys, and their cases. The call to 1-877-377-SUIT (7848) is free and so is the advice, even if you are looking for litigation funding elsewhere. Or, please, visit us on the web at Our next “Things to Consider When Your Client Seeks Lawsuit Funding” post will discuss the subject of “capped” funding profits, something that very few legal finance companies offer. To be continued….