Legal Funding – Cash Flow Management – Growth
Legal funding is important to lawyers, law firms, attorneys, and plaintiffs. Lawsuits take a long time to reach a conclusion, and even once a lawsuit is over, either by award, or by settlement, it can still take a long time (sometimes years) to receive your money.
While all of that is happening, there are expenses that pile up, experts that need to be hired for other cases, employees to pay, bills to pay, and other lawsuits to keep going.
The longer it takes to get paid, the thinner cash flow becomes.
Legal funding is here to help relieve the pressure by providing funding in advance of settlements and awards from lawsuits.
Why Work with Balanced Bridge Funding?
At Balanced Bridge Funding, we are professional, courteous, and discreet. Our clients like to keep their financing activities private, and we respect their wishes. When you work with us, you work with a group of true professionals with many years of legal funding industry experience.
Is Legal Funding A Loan or Line of Credit?
No, legal funding is not a loan or line of credit.
Instead, a legal funding company purchases a portion of your future settlement or award for a fee. This gives you access to some of your money now, and we make money on the fee.
How Does Legal Funding Repayment Work?
When we purchase a portion of your future settlement, we own it. We are paid directly by the administrator of the settlement or award, as opposed to you paying us back (which is how a loan works). We get our money back directly from the settlement because we purchased it, and we own it.
Why Would I Want to Use Legal Funding?
It can take years after a case settles or litigation is concluded to receive a check. Most people (especially plaintiffs) don’t realize this. They tend to think they are just going to walk downstairs, and someone will be waiting with their money. It doesn’t work like that.
In fact, it can take years to receive payment from a settlement.
In the case of lawsuits against governments or municipalities, it could take decades (if ever) to be paid. These entities often have the ability to decide for themselves when they can afford to pay out on lawsuits or settlement agreements. Not only that, but in some cases, they are often allowed to prioritize which settlements or awards they want to pay out first. So even though you might have won a settlement “against the city” – you might be sitting in line waiting to be paid behind lawsuits that settled fifteen years ago. How long can you wait to be paid?
Legal funding provides you the ability to receive part of your funds now, which you can use to do whatever you need to do.
Why Legal Funding is Better Than a Loan
Legal funding can be better than a traditional loan.
For starters, when you want to apply for a traditional loan, you must specify what that loan is going to be used for (house, car, boat, etc.). And if you can’t specify what the loan is going to be used for, then you are applying for an unsecured line of personal credit. If you can qualify for this type of loan at all, your interest rates will be much higher than a secured loan. Not only that, but people who do not have perfect credit rarely qualify for unsecured loans.
But with lawsuit funding, you are almost always approved. Your credit isn’t normally impacted because we are not “loaning” you the money. We are buying part of your future settlement from you at a discounted rate.
As for Law firms – trying to get an unsecured line of credit might be nearly impossible for a newer or smaller law firm. And attorney lines of credit will nearly always have limits that are lower than you need. But with legal funding, you can receive funds for each case you have pending, as opposed to trying to fund multiple cases using a single line of credit.
Banks often don’t understand the law industry and how law firms work. It isn’t always clear to a bank underwriter that a law firm case load is an asset, and a highly valuable one. At Balanced Bridge Funding, we specialize in working with law firms, and we know how valuable your caseload is and how to help fund law firms appropriately.
Why Lawsuit Funding is Better Than an Attorney Line of Credit
Lawsuit funding is better than an attorney line of credit in many ways.
Funding From All of Your Cases: There is no limit to the number of cases you can receive lawsuit funding from. If you have ten cases waiting to be paid out, you can receive legal funding for each of the ten. With a line of credit, you get the amount you qualify for, and that is it. A line of credit doesn’t generally grow just because you take on more cases.
Getting What You Need: New law firms, or smaller law firms, you might not qualify for a line of credit at all, and if you do, it probably won’t be as much as you need to truly fund your operations. When you use lawsuit funding, you can receive funding for as many cases as you have won or settled.
Speed – It can take a long time for a new law firm to find a bank or credit union willing to loan them money. But you could be approved for legal funding same day or next day.
Learn More About Legal Funding
To Learn More About Legal Funding, read our resource entitled Legal Funding: The Essential Guide.
Quick and Discreet – Hassle Free Application Process
Call: 267-457-4540 to speak to one of our legal funding experts.