It has often been noticed that lawyers starting their law firm have to face with situations that in the initial stages are difficult to handle especially the burden of financial debt for meeting office set up expenses, advertisement and other factors. After shouldering all these liabilities when they meet up with business which is far below expectations, it can be disastrous. If one is really interested in starting a business related to the legal profession then a great idea would be to start your own lawsuit funding business. Here is how you can start the business and benefit from the advantages of it.
Starting the business
Going through the formalities of taking out a license and acquiring an office, you can start by offering small lawsuit loans to those whose pending law suits have the potential to get the legal claims, going through the merits of the case. First you have to find out the eligibility of the person whom you are funding and to do that you will need to have a list of various types of injuries, disability or accidental death, sexual harassment, claims for product liability, medical negligence, food poisoning, animal bites and other cases where the plaintiff has the right to claim for damages. You have to carefully assess the potentiality of the pending lawsuit and in general you can start by providing not more than 15% of expected amount of claim on the basis of a written agreement for repayment of the loan with interest ranging from 2% to 3.5% capped for 2 years only.
Factors you should know
You will get business once you offer attractive terms of funding where your clients are required to make the repayment only after settlement of their claim and in case they do not win, they do not have to pay. Its simple as that and moreover the interest charged is capped after 2 years. In case the claim is not settled within 2 years, they do not have to pay any interest thereafter. That is why while providing law suit funding you must be careful in assessing correctly and become sure that the claim of your client has every possibility to be settled within shortest time as possible. You will also require receiving a statement from your client’s attorney relating to some questions asked and on evaluation of the case by underwriters you appoint, after which you pay cash advance within 24 hours from receiving their online application forms. The next step is to assess the viability of sanctioning the loan and if the client has all the creditability of getting the loan, you will have to send your representative to discuss matter at length with your client. You can pay any amount ranging from $250 to $ 100,000, which depends upon the potential value of the claim. Evaluation of your expected claim will be made based on which you will be paid advance.
This profession is completely ethical and has created a potential market where there is a free system for plaintiffs to use their options to their discretion. Through lawsuit funding a plaintiff gets an opportunity to derive full advantage of an available and viable option through lawsuit loans to tide over financial crisis until the time of settlement of the lawsuit. One thing more, you have to keep all information and records of your client confidential.
Author bio: David is a blogger who live in US with his wife and kids. He writes on the benefits offered by lawsuit funding. You may check out more about this fantastic opportunity and how it helps the professionals in the field.