What a Lawsuit Funding Company Does

Lawsuit funding companies have now been around for a good number of years. These companies provide legal funding to attornies and pre-settlement loans to anyone who has been the recipient of personal injuy and who is planning to sue. One of the reasons lawsuit funding companies were set up was to help people who had waited years to receive any settlement from a lawsuit. While many lawsuits that are brought as a result of personal injury are settled pretty quickly, sometimes out of court, others can take a long time. Lawsuit funding means that the legal fees are paid and a pre-settlement loan or cash advance means that you can enjoy some of the money while the case is going through the courts.

A lawsuit funding company provides non-recourse loans to you and your attorney. When your case comes to an end and you receive a financial settlement, then your attorney will pay the funding company what is owed out of your compensation, and pay you the rest. If, for any reason you do not win your case and receive a settlement for your injuries then you will not have to pay back the money that you have already had. Lawsuit funding companies usually charge a flat fee that is higher than the advance made to you, because that is why they are in business.