Are you a plaintiff in a civil case?
You must be wondering how to foot your legal expenses. Well, there are various things to consider.
The following are 5 questions you should ask before engaging in a litigation finance deal.
- How do I acquire litigation finance?
You need to consult a litigation funding professional about your case’s eligibility for financing. Financiers are attorneys who work diligently with you throughout the financing process.
To protect the privacy of information shared with your funder, you first sign an NDA. A term sheet showing the structure and returns of the investment will then be provided to you. This happens if your case meets the minimum threshold for funding.
During the diligence phase, funders will review the case in detail. You and the funder will then finalize a litigation investment agreement. At this point, the litigation company will take charge of your legal expenses.
- What types of litigation finance options does the funder offer?
Several funding options are available: This includes;
- Third-party funding
- Fixed fees
- Damages-based agreements
- Legal expense insurance
- Conditional fee agreements
Should you wish to hire a commercial litigation funding company to pursue or defend a claim, Tribeca Lawsuit Loans would be happy to discuss the available options with you.
You will be allowed to discuss the various funding options appropriate to meet your individual needs. It may involve talking to a finance broker knowledgeable in this field.
- How long has the commercial litigation funding company been in business?
Asking about their past performances would help you get a sense of how well they have been performing. You might wish to understand the number of inquiries they obtain in a year, the number of cases they fund, and how they invest in their clients.
In terms of contractual and financial conditions, there are also growing trends among prominent funders. Engaging an experienced litigation financier from Tribeca Lawsuit Loans who knows the process might be beneficial, especially if you’re attempting funding for the first time.
- Does the financier consider the kind of case I have?
There are two kinds of litigation funding: commercial and consumer. Consumer litigation often funds consumer cases that are less than $1 million.
Their stakes range from $15,000 to $25,000 for each case. Consumer funders make investments in claims such as medical malpractice, personal injury, employment discrimination, insurance claims, and fraud claims.
Commercial financiers fund business-to-business litigation, financing the plaintiff $1 million or more.
Commercial litigation funding is available for any kind of litigation, such as breach of fiduciary responsibility, breach of contract, copyright/trademark infringement, patent infringement, oil, and gas, or bankruptcy.
Some investors, for example, specialize in patent litigation, while others deliberately reject particular kinds of cases from their investment portfolio.
- How can commercial legal finance get you a more significant settlement?
A commercial litigation funding company provides plaintiffs with the funds to meet their operational expenditures while their legal proceedings are pending.
Defense lawyers and insurance firms prolong the processes so that your rising financial status works against you, pushing you to take a lower settlement.
A commercial litigation funding company takes away the advantage they depend on when using your financial obligations against you.
Commercial litigation finance allows you to cover your present expenditures while you wait. Once the defense is confident you have the financial resources to seek your rightful compensation, they will be pushed to make more substantial settlement offers.
To sum up
If you are facing a business-related lawsuit, there are firms that provide you with commercial litigation funding to get a substantial amount of money in your bank account as soon as possible.