Legal funding is a very useful process which always doesn’t work for litigants. In most of the cases, it takes a longer period of time than the predictable ones. But, such type of funding helps the client by giving a huge amount for the case.
It sometimes refers to the deal with the lawyer that the cost is only paid when the case is able to get success at the end. Legal funding is good as well as there are some drawbacks also. So, today we will discuss the same.
Here are some Pros and Cons of legal funding:
- Pros of legal funding:
There are many advantages of legal funding but, one of the most beneficial advantages is the repayment of finance. It implies that if the company loses the case, the litigant does not need to pay for the legal funding. The funders will not carry out credit checks. If the plaintiff has no money or credit then legal funder can help them. It makes you say no to the not appropriate settlement offer. Apart from that if the lawsuits are pending for years then, you do not need to pay the funding.
- Cons of legal funding:
There is some case in which legal funder will not be paid back. The amount charged by them is more expensive than the real amount. As well as, some companies charge a higher rate of return interest. The process is very expensive as not everyone can afford it.
Looking at the advantages and disadvantages we can say that it gives more pros than the cons. Plaintiffs who want to manage the costing can hire one of the best companies for this. But, make sure to read terms and condition carefully so that you do not have to face any trouble in the future.