The purpose of this document and all articles published by the signatory is to educate the public about the entire litigation fund business. The premise is that if the public is more aware of the business and how it works, it will benefit both the litigation loan industry and its customers. This article will explore the various ways in which litigation fundraising activities can generate cases to consider cash advances.
As with most companies with sufficient demand, there are many ways to generate new business. In litigation financing, business is usually initiated through direct “internal” efforts or through litigation financing brokers.
Initiating a business is essentially an application/order that informs a large number of people about the services/products that are offered and then processes the products/services. There is really no difference in the loan business before settlement. Litigation financing brokers provide litigation loans specifically for financing companies.
Of course, there are costs associated with this part of the business, and ultimately, all costs will be passed on to the consumer. If you are applying for cash advances for litigation – you are the consumer.
However, the broker can still assist the applicant in completing the fundraising process. The company is a qualified guide and may be very valuable to the applicant. Some of the benefits of working with a broker are:
1. Industry expertise – Usually, people who make a living from a certain effort will gain expertise in the field. Specifically, litigation financing is a unique form of “professional finance” in which common sense is mixed with complex knowledge of legal procedures. Those with business experience are often able to provide insights into the litigation loan process that might otherwise be unavailable. This insight may prove valuable to applicants for pre-settlement loans.
2. Obtaining multiple lenders – brokers are also associated with various litigation cash advance grant sponsors. This can also help applicants because the underwriting of the case is quite subjective and each lender has its own risk model. If there is no cash, multiple lenders can be used to help applicants in “marginal” cases get funding.
3. Ability to answer questions and personal concerns – Because litigation financing brokers are well aware of the financing process, they are able to answer most, if not all, questions. More importantly, applicants are able to reach these people in a more consistent manner than when dealing with direct lenders. More communication usually leads to more successful results. Since the applicant can better explain his position to the broker and the broker, the compensation depends on the cash litigation costs received by the applicant, and the broker is eager to provide assistance.
Of course, the benefits listed above come at a price. In the next article, we will discuss in detail the costs associated with using broker services when applying for litigation loans.
Thank you for your interest in litigation financing.