In the last article, we discussed lawsuit funding in general and how, for better or worse, these transactions have become a part of every personal injury law practice. In this message, we examine the lawsuit funding process and introduce a proven strategy to minimize the hassle out of the lawsuit funding process.
The Process in a Nutshell
Lawsuit funding deals begin with a client’s immediate need for cash. This need is paramount of course, and prompts clients to seek out information regarding “lawsuit loans” or “settlement funding” from a variety of resources, including family, friends, their attorneys and/or the internet.
Once a funding outfit is contacted, an application is taken. The required paperwork is then sought from the attorney and his/her staff. Once the documents are compiled, the attorney must then conduct a short telephone interview with a lawsuit funding “underwriter” before the application is approved for funding. Once approved, the attorney must sign off on the agreement and acknowledge there has been a transfer of property rights in a portion of the future proceeds of the case.
Unfortunately, the lawsuit funding process demands that a law firm devote resources to an endeavor that may or may not ultimately increase the firm’s revenue. Sometimes lawsuit funding transactions give clients the staying power to reject “low ball” settlement offers. This gives clients the financial wherewithal to seek out a better offer and increases the firm’s fee. Unfortunately, not all funding deals have this positive effect on the firm’s bottom line.
Minimizing the Intrusion
Obviously, attorney participation is a prerequisite to any lawsuit funding deal. The good news is that much of the time spent on the process can be minimized through the use of some proven strategies. The use of these strategies will virtually eliminate the time your staff must devote to the funding process, while assuring your clients the best possible terms for funding.
Approaching lawsuit funding in this manner makes the most sense because not only will your staff waste less time in the process, but you will be in a better position to help your clients with funding even though the case may not yet be adequately developed.
In our next installment, we will discuss the one major idea which forms the basis of these strategies and the positive effect this will could have for your firm and your clients if implemented properly. Please stay tuned for our next installment or click here to sign up for our newsletter which includes case studies, new promotions, and other news.
Installment number one of this series can be found here.
Thank you for your interest in the lawsuit funding business.