Each year millions of people are injured in car accidents, at work and during medical procedures. These injuries put people out of work and create a financial burden that is not lifted until their case settles. Surveys show that 62% of Americans have less than $1000 in savings. Being injured and out of work will quickly dwindle many people’s savings and put pressure on them to settle for less than their case is worth. The solution to this problem is lawsuit funding.
Lawsuit funding vs a Loan
Lawsuit funding is different than a loan. A lawsuit is an illiquid (difficult to turn into cash) asset with an uncertain outcome, which can be liquidated (turned into cash) by selling off a portion of the case to a third party. Lawsuit funding is based upon the facts of the case whereas a loan is based upon the credit worthiness of the borrower. Lawsuit funding is only paid back if the case settles whereas a loan requires monthly payments from the borrower.
Why Take Lawsuit Funding?
Many people don’t have the financial assets to withstand an emergency like a personal injury lawsuit. Victims may need cash to pay for repairs to their car from an accident, a new or rental car to get back to work, replace income lost from being out of work due to an accident, medical bills, surgery, children’s education and childcare.
Lawsuit funding is less expensive than other alternative forms of borrowing like payday loans. Lawsuit funding also doesn’t require monthly payments or credit checks, because it is based upon the value of the case not the credit worthiness of the borrower.