Though the term ‘legal funding’ might be well known and understood by individuals who are either lawyers or plaintiffs, it might be a relatively newer word for the claimant who has yet to file his case in the court. However, before I proceed further to explain you how do the whole process of lawsuit settlement funding work, let me offer you with its brief overview. Perhaps you might have got little idea about the nature of this legal finance funding after reading its name, yet I’m sure you might not be fully aware of its purpose. So, let’s start with it.

While this lawsuit funding is the non-recourse lawsuit loan amount that comes as a primary aid option for litigants whose case is still in the jurisdiction of court, it is not the money which should be spent lavishly. Since this commercial litigation funding is an expensive mode of loan financing that can be put to various uses both by the law firm and the plaintiff, the settlement loan should be used judiciously i.e. for legal proceedings, paying attorney’s fee and meeting other financial needs that are most urgent ones. The received cash advance normally varies between 10 to 15 percent of the total worth of your case that is calculated on its chances of win. However this amount can be used for payment of medical bills, mortgage amounts and education loans etc.

There are four major determinants of this funding agency. These are the plaintiffs commonly called clients, the brokers, the pre settlement funding agency or the lawsuit settlement firm and the attorney or the legal advisor. While each one has its own set of responsibilities and roles, they all are vital to the success of lawsuit loans industry. As a consequence, if anyone from the four tends to miss out from the picture it may seriously affect the functioning of the industry.