How Plaintiff Funding Can Impact Your Legal Strategy

Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects.

If you’ve been hurt in a car crash, industrial accident, or slip and fall, you may consider filing a personal injury claim. While lawsuits offer the potential for financial compensation, they often take months or years to resolve. You may have heard that legal funding (also known as plaintiff funding) can help you pay your bills in the meantime.

But did you also know plaintiff funding can sometimes help the case itself? Here, we discuss how a plaintiff funding service can impact your attorney’s legal strategy and potentially the outcome of your lawsuit.

What Is Plaintiff Funding?

Plaintiff funding goes by many names: legal funding, litigation financing, lawsuit funding, and pre-settlement advances. Whatever the name, the idea is the same. Plaintiff funding provides cash advances to individuals who have filed a claim (the plaintiff) against another party (the defendant). If you receive legal funding, you can use it for medical expenses, mortgage payments, and other costs until your case concludes.

Unlike a loan, plaintiff cash advances are non-recourse funding. That means if you don’t win your case, you don’t have to pay back the money. That’s because the funding provider only deducts payment from your final settlement or court award. While some people refer to this funding as a “lawsuit loan” or “legal loan,” it is not technically a loan since you don’t need to pay it back if you lose.

How Can Plaintiff Legal Funding Help Your Case?

A non-recourse cash advance offers clear personal benefits to plaintiffs. It can prevent financial strain, allow you to focus on your recovery, and reduce your overall stress level. But what is the role of legal funding in shaping legal outcomes?

• It improves access to justice:  Large corporations and insurance companies often have resources the average person does not. By alleviating worry about upfront costs and financial instability, plaintiff funding can help level the playing field.
• It frees up attorney time: If you are in desperate need of financial assistance, it can take time and focus away from your case. You and your legal team may spend more time problem-solving financial issues and less time discussing and preparing your lawsuit.
• It can strengthen your case: Plaintiff financing can change how an attorney approaches a case. With more time and less pressure, your lawyer can gather more persuasive evidence, work with professional witnesses, and brainstorm winning legal strategies. Some studies suggest a positive case-outcome correlation with third-party legal funding.
• It provides leverage in negotiations: One of the key benefits of plaintiff funding is it buys you more time to negotiate. Rather than feeling forced to accept a hasty settlement, your attorney can hold out for a potentially better offer.
• It reduces risk for the plaintiff: With traditional loans, the plaintiff bears the majority of the financial burden of a case. Plaintiff funding shifts the financial risk to the funding company.
• It can increase your claim’s value: Having the money to continue seeing a doctor can potentially impact the settlement amount. If you abandon medical care, the insurance company may claim your injury is not that serious. Furthermore, until you reach the point of maximum improvement with treatment, it’s difficult to factor in future expenses you could otherwise claim.

What Are Other Benefits of Plaintiff Funding?

In addition to giving you and your personal injury attorney more time to pursue your case, plaintiff funding offers the following benefits:

• It can help you regain stability: If you can’t work after an accident, you may spiral financially. Plaintiff funding can help prevent financial hardship during this challenging time.
• You can use it on anything: There are no limits on how you spend your legal funding. You can use it to repair your car, pay your tuition, buy groceries, or hire in-home assistance.
• It provides non-recourse funding: Unlike traditional bank loans, you don’t have to pay plaintiff funding back if you don’t win your case. Instead, it is deducted from your final settlement amount.
• It’s fast: Legal cases can take months or years to resolve. Third-party plaintiff funding lets you access money quicker, sometimes in as little as one day.

It’s supported by other resources: Plaintiff funding can stretch further when combined with additional tools designed to help individuals organize and file lawsuits without legal representation.

While plaintiff funding has many benefits, you should consider the potential downsides. For example, it can be expensive due to high fees and interest rates. In addition, you may accept more funding than you need, which can eat into your eventual settlement amount. Make sure to discuss your needs with your attorney and choose a reputable third-party funding provider.

How Does Plaintiff Funding Work?

While the exact steps may vary by company, plaintiff legal funding typically works like this:

1. Application: First, you apply, providing your lawyer’s contact details and some basic information about your case.
2. Review: Next, the company reviews your case, considering who was at fault, what the damages were, and what your chances of winning are.
3. Approval: If your case looks strong and they approve your application, you and your attorney will sign a contract.
4. Funding: Once the contract is finalized, the company will send the cash your way!

See If You Qualify for Plaintiff Funding Today!

To explore the possibility of plaintiff funding for your pending litigation, contact Rockpoint Legal Funding. The benefits of a reliable legal funding partner include:

• No credit pull: We won’t conduct a hard credit check when you apply.
• No pressure: We don’t push clients to take out more funding than they need.
• No surprises: We offer transparent contracts and clear funding terms without hidden fees.
• No waiting: We provide efficient service, often sending your funds as soon as the same day.

Contact us today for a free consultation or apply online now!