Despite the name, “Case Loans” also referred to as “Lawsuit Loans” are not what Pegasus offers. Pegasus offers a pre-settlement payment made to a client who can’t, or doesn’t want to, wait for a pending lawsuit’s final judgment or settlement which is non-recourse. More accurately, the transaction is actually a contractually agreed-upon advance against expected future payouts
from a lawsuit. In a sense, it’s an “investment” in those future payouts that can almost be considered a form of venture capital.
Non-recourse cash advances are important options in many American court cases because mainstream lenders generally won’t support cash-strapped litigants, and limit their formal loans or lines of credit only to lawyers and law firms. This policy, unfortunately, leaves those lawyers’ clients out in the cold.
Can Clients Can Benefit From “Lawsuit Loans”
Actually “Lawsuit Loans” can be risky and unlike what Pegasus offers require repayment even if you lose your case. Legal Funding from Pegasus does not require you repay the cash advance if you lose your case. Ordinary people who need money to maintain a decent lifestyle until their lawsuit reaches its ultimate conclusion can benefit greatly from the various forms of “non recourse” lawsuit funding that come under the rubric of “a cash advance.”
The biggest advantage of these “case adavances,” of course, is that they do not entail any serious financial risk for the client: if their lawsuit goes against them, or if it settles for less than expected, the client has no legal obligation to repay any “cash advance” amounts that exceed the total amount received from the case. In other words, a client’s maximum repayment obligation to the
lawsuit funding company is simply their share of any recovery, or less, depending on the contract terms.
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When Does Taking A Traditional “Lawsuit Loan” Make Sense?
If your case has a settlement offer, they’d be a sensible alternative for a great many clients waiting for the proceeds of their lawsuits. But only then, when you are at that time facing serious financial stress. Although they are normally structured to sidestep any relevant usury laws, “cash advances” usually specify certain costs that — when the lawsuit results in sufficiently large awards or settlements — drive a client’s total repayments considerably higher than the amount originally advanced.
For this reason, “lawsuit loans” are not appropriate for every client, and should normally be considered the financing option of last resort.
Before accepting a “lawsuit loan,” clients should consider utilizing their credit cards, unsecured lines of credit, home equity loans, personal loans, or cash advances from friends and family. Any or all of these funding sources — which must normally be paid back regardless of the lawsuit’s outcome — can prove less expensive than non-recourse “cash advance,” particularly in situations where favorable legal outcomes allow for full repayment of the funding company’s maximum charges.
When there is no other source of funds, though, and the client is facing “must pay” medical bills, for example, or mortgage payments, educational expenses, even ordinary living expenses like food and utilities, then “case loans” may
look far more attractive than other remaining alternatives, such as non- payment, or going without.
Some Ins and Outs of “Lawsuit Loans”
Although lawyers need not be involved in negotiating terms of a “lawsuit loan,” it’s usually smart for clients to work closely with their attorneys when taking out a “lawsuit loan,” not only to obtain the best possible arrangement and to review the necessary contracts, but also to identify experienced and amenable funding companies.
Naturally, bar associations and state legislatures are extremely concerned about preventing situations that can give rise to conflicts of interest between attorneys and their clients. That’s why lawyers are allowed to advance the out-of-pocket costs of ongoing litigation, but are forbidden to lend their clients money. These strictures are intended to prevent situations where lawyers may be tempted to push for a faster but smaller recovery, or to be satisfied with a settlement offer that covers the lawyer’s loan to the client, but little or nothing more. Keeping the client’s and the lawyer’s financial interests separate is one part of an overall attempt to keep the client’s best interests paramount.
However, nothing prevents a lawyer from referring a client to lenders and lawsuit financing companies that can help the client obtain needed or wanted money during the pendency of a lawsuit.
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WHY PEGASUS LEGAL FUNDING?
There are many companies that offer cash advances for lawsuits. However, Pegasus Legal Funding offers a best price guarantee. We offer rates as low as 1.67% a month. If Pegasus Legal Funding approves your application for a cash advance and another legal funding company sends you a written contract to advance the same amount at a lower total cost, we will beat that deal or pay you $100. Guaranteed! Pegasus Legal Funding will let you know if we can fund your case in 24 hours of receiving the necessary information. Many companies claim they can approve your advance in 24 hours, but Pegasus Legal Funding actually delivers on that promise. In some cases, we can make a decision just 4-6 hours after receiving the required information from you and your attorney. Pegasus Legal Funding has the resources to fund large cash advances. We offer cash advances from as low as $500 to as high as $500,000. We may be able to provide you with a cash advance even if you have already accepted a cash advance with another company. If we approve your cash advance, we can have your prior cash advance transferred to our company, so you can get our low interest rates on your additional funding. We will review your case for
free and will do our best to provide you with any additional help you may need. If you do not have an attorney, we can match you with an attorney who has the experience and expertise to provide you with the best legal representation possible. Plus, we work with the best surgeons, doctors, and hospitals and will negotiate the lowest possible prices for your treatment. Pegasus Legal Funding always goes the extra mile to provide unparalleled client satisfaction!
Your pre-settlement funding consultation is free — contact us today!