For law firms that want to effectively advocate for their clients’ rights, litigation lending is a powerful tool to not only reduce the financial strain on clients, but ensure they are able to pay for legal services in a timely manner.
What is litigation lending?
A litigation loan is a financial tool to help a client cover the costs of a lawsuit they have filed, or to reduce their financial strain while they navigate the legal process of resolving a lawsuit. It’s basically a cash advance on a likely future settlement.
Litigation lending can be especially helpful for clients navigating the convoluted personal injury legal process. With no income coming in, the chief concern of a personal injury clients is often how to pay for the basic necessities of life every month: their home, their car, groceries and even their medication. And given they are out of work, they may often be ineligible for bank loans or traditional lending.
Litigation lending can allow them the flexibility to be able to wait for an appropriate settlement to be reached, instead of jumping at the first offer because they are strained financially.
How does litigation lending work?
Litigation lending companies, like Greenbridge Capital, lend money to individuals involved in civil litigation, long term disability, and personal injury lawsuits who need help to pay for their daily living expenses. That can help keep them stay afloat financially until their legal matter concludes.
Unlike other types of lending, litigation lending doesn’t depend entirely on the applicant’s credit history and is instead based on the likelihood of the litigation’s success. Litigation lending companies will consider a number of factors to decide whether they are prepared to offer financing. The company’s lawyers will review each personal injury complaint, looking at both sides of the argument, to decide whether a ruling will be made in the plaintiff’s favour before approving the loan.
How can litigation lending benefit your law firm?
For law firms offering their clients litigation lending, there are a number of positive benefits, according to Kris Dahl, Greenbridge’s founder and managing director.
“Litigation lending offers law firms a strategic advantage by freeing up their financial resources to focus on core operations and growth initiatives,” said Dahl. “By leveraging external funding to cover client costs during legal proceedings, firms can expand their client base, take on more cases, and ultimately achieve greater success without being hindered by financial constraints.”
By ensuring clients are able to pay for legal services in a timely manner, litigation lenders like Greenbridge Capital can help free up financial resources. In some cases, it can also empower firms to take on cases they may have turned away due to financial constraints.
Additionally, any law firm that cares about the wellbeing of its clients will want to ensure they are not suffering financially while they await a settlement. Litigation lending allows a client a measure of financial breathing room by easing financial burdens, which in turn allows the client the freedom to make better decisions about the future of their litigation.
What can Greenbridge Capital do for your law firm?
Greenbridge Capital’s litigation finance specialists possess an in-depth understanding of the legal landscape and the unique challenges faced by law firms and their clients. This insider knowledge allows Greenbridge to deliver personalized lending services tailored to your firm’s specific needs.
Are you a law firm eager to explore how our services can transform your practice? Get in touch with us today to discover how Greenbridge Capital’s litigation finance solutions can empower your firm’s growth and success.