What is the typical funding amount for a pre-settlement funding company?
Pre-settlement funding is an increasingly popular financial instrument for individuals who are experiencing a legal claim or pending lawsuit but lack the financial resources to prosecute the lawsuit to completion. This type of funding is designed to provide a way for those claimants to retain lawyers and pursue the lawsuit, even if the outcome is uncertain or a settlement may be years away. The funding amount provided by pre-settlement funding companies varies drastically depending on the case, range of potential outcomes, and other factors.
What Is Pre-Settlement Funding?
Pre-settlement funding is a type of legal finance in which a third-party provides a sum of money to a plaintiff in a personal injury lawsuit or other legal action. The plaintiff agrees to make the repayments to the funding company when they receive their settlement. This type of funding is a relatively new industry, but it’s gaining popularity as an attractive financial solution for plaintiffs with pending lawsuits.
The primary benefits of pre-settlement funding are that it offers a way for claimants to maintain legal representation, funding day-to-day expenses, and avoid being pressured into accepting low settlement amounts. This funding allows claimants to hold out for the best possible outcome, as they are able to access finances while they wait for a settlement.
The Typical Funding Amount
The exact amount of funding available through pre-settlement funding companies can vary depending on a number of factors; however, the typical amount of funding can range from $500 to $150,000. The amount a funding company offers is likely to depend on the claim and the range of potential outcomes. If a successful claim could result in a payout of a few thousand dollars, for example, the funding company is likely to offer a smaller amount of financial assistance.
A range of factors can also influence the amount of pre-settlement funding a company is willing to provide. Some of these include the reputation of the attorney involved in the claim, the financial creditworthiness and risk of the plaintiff, and the veracity of the claim itself.
The exact terms of the pre-settlement funding will vary depending on the provider, with some companies offering -fees and interest rates ranging from 15% to 60%. It’s important for potential claimants to do research and compare possible pre-settlement funding options to find the best option for their particular financial needs.
The Process of Applying for Funding
The application process for pre-settlement funding is usually relatively straightforward and can often be completed in a matter of days. To apply, claimants must provide information such as documentation related to the case, the venue in which the claim is being heard, and the estimated value of the claim.
Once the pre-settlement funding company has all of the necessary information, they can begin the evaluation process and offer a funding amount. This process will typically take anywhere from a few days to a few weeks.
Conclusion
Pre-settlement funding is a relatively new financial instrument, and it provides an attractive option for individuals who are trying to pursue legal claims but don’t have the financial resources to do so. While the exact funding amount offered by pre-settlement funding companies can vary drastically, typically it ranges from $500 to $150,000. In order to apply for funding, potential claimants must provide information about the lawsuit and the estimated value of the claim.
