Legal funding can have a positive impact on a settlement by allowing plaintiffs to pursue a fair resolution without the pressure to settle prematurely. However, it’s essential to carefully weigh the costs and terms of the funding agreement.
Let’s take a closer look at the ways legal funding can influence a settlement.
Allows Plaintiffs to Hold Out for a Fair Settlement
One of the most significant benefits of legal funding is that it provides plaintiffs with the financial support they need to cover living expenses, medical bills, and legal fees while their case is ongoing. Without this support, plaintiffs may feel pressured to accept a lowball settlement offer from the defendant just to alleviate their immediate financial stress. Legal funding gives them the financial flexibility to wait for a fair and just settlement rather than settling prematurely.
Leveling the Playing Field
Defendants, especially large corporations or insurance companies, often have vast resources and can afford to drag out legal proceedings, hoping plaintiffs will become desperate and settle for less. Legal funding empowers plaintiffs by giving them the financial means to continue pursuing their case, which can lead to a higher settlement as the defense may realize the plaintiff can now withstand a prolonged legal battle.
Strengthening the Plaintiff’s Legal Strategy
With legal funding, plaintiffs can afford to hire expert witnesses, gather additional evidence, and use more comprehensive legal strategies that may have been financially out of reach without the funding. This can improve their chances of securing a higher settlement, as a well-supported case is more likely to result in favorable negotiations.
Reducing Stress
Legal funding can relieve the financial stress that often accompanies long legal battles. By covering daily expenses and medical bills, plaintiffs are more likely to be in a better mental and emotional state, allowing them to focus on the case rather than worrying about immediate financial needs. This can lead to more rational decision-making during settlement negotiations, potentially leading to a better outcome.
Repayment from Settlement Proceeds
While legal funding provides immediate financial relief, it’s important to remember that legal funding is not a loan but an advance on the anticipated settlement. The funding company is paid back out of the settlement proceeds, often with interest or fees. If a plaintiff receives a lower-than-expected settlement, a substantial portion of it may go toward repaying the legal funding, leaving the plaintiff with less money than anticipated after the case resolves.
Make sure you understand the repayment process completely before entering into any legal funding arrangement.
Legal Funding From Cash Now Funding Group
Are you or a family member in need of financial assistance due to a lengthy legal battle? Are you preparing for a long-term legal battle to get the compensation you deserve? Cash Now Funding Group can be the financial lifeline you need while your case settles. Applying is free and confidential & no credit check is required.