Lawsuit finance, otherwise known as case loans, lawsuit cash advances, lawsuit loans or case funding is a complex business providing upfront cash now against the future proceeds of a claim for damages, otherwise known as a lawsuit.
Since every case is different, each case must be evaluated thoroughly and carefully. The vast majority of cases funded by lawsuit cash advance companies, are “run of the mill” personal injury cases. Examples include, slip and fall cases, motor vehicle accidents, or workers’ compensation cases.
However, lawsuits such as medical and legal malpractice, products liability, class action lawsuits and others all increase the complexity and thus the amount of time needed to properly evaluate the risk to the funding company’s capital.
You will undoubtedly encounter many pre-settlement advance companies touting 24 hour service. And cases are routinely funded within this time frame. However, many cases simply cannot be evaluated in 24 hours for various reasons. collection laws in California
The Biggest Cause of Delay
By far the largest reason for a delay in funding is the inability to quickly obtain information about the case and put it into the hands of the case loan underwriters. Keep in mind that lawsuit funding underwriters must assess the risk of investment and weigh that against the likelihood of recovery in any lawsuit. If a lawsuit is “lost”, the lawsuit loan is also lost. In almost every case, underwriters are dealing with a limited amount of information.
Clients can certainly understand all information received must be processed before a lawsuit loan can be approved. Fortunately, case loan underwriters are skilled in this type of risk assessment and usually can complete the risk analysis in a short time once the information is received.
Helping the lawsuit finance company obtain information is the best way the client can help out in the approval process. In some instances, the attorney handling the case simply does not possess all the information. Medical reports, police or incident reports, or insurance information may exist but the attorney may not have them. After all, the attorney may not need the information right away. The attorney knows all the pertinent information will come out eventually.
Yet while the attorney is in no rush, the client usually needs cash now. Clients help their own cause and their attorney as well, by gathering the information necessary for a lawsuit loan. For example, the necessary documents for a Lawsuit Cash Advance in a automobile accident generally is the police report, medical records, and insurance coverage. Clients frequently possess the police report and some of the medical records. If not, the client certainly can take the matter into his own hands and chase down that paperwork for his attorney. He thereby saves the attorney time and also helps out in the lawsuit funding process. Legal funding companies enthusiastically help these individuals.