In Part 1, we considered ways in which those considering obtaining either a lawsuit loan or lawsuit funding could determine whether that would be an appropriate course of action for them to pursue. In this article, we will discuss additional considerations that must be undertaken prior to determining whether this is an appropriate course of action for plaintiffs to take.

Many of our clients ask if they’re going to be required to sign any documentation prior to obtaining a settlement loan. The answer to this question really lies in the type of case submitted for review. It is the type of case that is submitted for review that will determine, at least in the case of reputable brokers, the funding-entity to which the request will be submitted for review/consideration. (unfortunately, many brokers rely solely on one single funding-entity.)

In most cases the answer to this question would be, “No.” However, some funding-entities do require a signature on the application prior to giving the application serious consideration. Contrariwise, many funding-entities do not require such a signature on an application prior to reviewing the documentation to determine whether funding may be appropriate in that particular instance.

It is important for the plaintiff to be aware of the fact that if the funding-entity does approve the request for funding, it will be necessary for both the plaintiff and the attorney to sign the documents prior to issuing any funding whatsoever. However, once again, the plaintiff will have an opportunity to review each and every document submitted and to discuss the issues thoroughly with his/her attorney prior to either signing any documents or making any commitment to the funding-entity.

Many of those who contact our site ask how much money they will be able to obtain if they request either a lawsuit loan or lawsuit funding. The rule-of-thumb is that the funding-entity will advance approximately 10%-15% of the anticipated value of the claim. Therefore, the amount that will be advanced is going to be contingent, to a large extent, on the type of case submitted to the underwriters. Most funding-entities will advance amounts ranging from $250 to $1 million.

If the plaintiff elects to make the request for lawsuit funding known to the defendant, the plaintiff, upon receipt of the requested funding, may put the defendant on notice that individuals who are experienced in reviewing such matters have reviewed the plaintiff’s particular claim. More importantly, those experienced individuals have made a determination that the plaintiff’s lawsuit, at least in the reviewers’ assessment, is meritorious.

Furthermore, once the plaintiff has obtained funding, the plaintiff is much more likely to be able to continue to pursue the litigation until he/she obtains a fair-and-equitable settlement. In the absence of such funding, unfortunately, many plaintiffs are forced to abandon their cases due to a lack of financial sustenance.

Many clients want to know exactly how long it will take to obtain the requested funding. This is contingent, by and large, on the type of case presented. Certain cases may be submitted for “quick-cash funding.” These cases are customarily automobile accidents involving plaintiffs who have no prior liens.

The most commonly encountered reason for delays in obtaining a determination as to whether a plaintiff may obtain either a lawsuit loan or lawsuit funding is a delay in providing requisite documentation. If the plaintiff and his/her attorney are cooperative and the documents are provided in a timely-manner, a determination as to whether the case will be approved for funding may be obtained within 72-96 hours. Upon approval of funding, the plaintiff will have an opportunity to review the documents submitted for a period of five days to determine whether the terms specified therein are agreeable.

There remains a great deal of information that plaintiffs should know prior to reaching any conclusion as to whether either lawsuit loan or lawsuit funding would be appropriate for them. Those who consider settlement loans should certainly devote the time required to become familiar with this process. In the next article, we’ll provide additional information that will assist plaintiffs in determining whether a pre-settlement loan would be right for them.

Looking for more information about lawsuit loans? Please allow us to provide more information regarding lawsuit settlement loans. Please stop by today, and you may either apply online for a lawsuit settlement loan or review our lawsuit loan frequently asked questions archive.