A business can pursue funding while they are in the middle of a commercial litigation lawsuit. This funding can help the business stay afloat financially. If the business’ lawsuit is successful, only then does the company have to repay the funding.
At Silver Dollar Financial, we offer commercial litigation funding and other funding options. To learn more, please contact us today. We can answer any questions you have about commercial litigation funding and related topics.
How Does Commercial Litigation Funding Work?
Commercial litigation involves a lawsuit between two or more businesses. One company can file a lawsuit against another and request compensatory damages. The plaintiff and defendant in the lawsuit can negotiate or go to trial, which can lead to a settlement agreement.
With commercial litigation funding, your business can receive a non-recourse loan based on your projected case settlement. You can provide a commercial litigation funding company with details about your case and projected settlement amount. This company can give you money that you can use until your case is closed.
Since commercial litigation funding is non-recourse, you do not need to pay it back unless you win or settle your case. If you lose your case, you keep the commercial litigation funding that was given to you. At this point, your commercial litigation funding provider takes full responsibility for your balance.
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What Types of Cases Qualify for Commercial Litigation Funding?
There are many types of lawsuits in which you can request commercial litigation funding for your business. These include:
- Breach of contract
- Intellectual property (IP) and patent infringement
- Trade secrets
If you want to pursue commercial litigation funding, you can reach out to a company that offers it. The business can give you details about commercial litigation funding options. If you find a funding option that lines up with your expectations, you can move forward with it.
What Are the Requirements for Commercial Litigation Funding?
A commercial litigation funding company will request information about your lawsuit and all that it entails. Also, you must hire an attorney to represent you. Your lawyer will keep your commercial litigation funding provider up to date about your case.
You can submit a commercial litigation funding application at any time. When you do, you will not need to provide details about your company’s financial history or any of your credit information. Instead, a commercial litigation funding company reviews the information surrounding your case.
If you qualify for funding, you will receive a quote with associated terms and conditions and an interest rate. It is paramount to review your quote and contact a funding company if you have any concerns or questions about it. If you accept your quote, you can expect money right away.
How Long Does It Take to Get Commercial Litigation Funding?
Generally, it only takes a few minutes to fill out an application for funding. Once your application is complete, a commercial litigation funding company can review it and send you a quote within 24 hours. As soon as you accept the quote, you can get your money in days.
Even though you can receive commercial litigation funding quickly, you may need to make this money last. There is no telling how long commercial litigation will last. If you are not careful, you risk spending all of the money from your commercial litigation funding at once.
It helps to make a budget for any commercial litigation funding you receive. In addition, your attorney can help you get the most value for your funding. Keep in mind that you will only have to pay back this funding if you secure a settlement, too.
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Restrictions on How to Use Commercial Litigation Funding
You are free to use your commercial litigation funding however you decide. Many businesses use the funding to support their day-to-day operations while their litigation is ongoing. This helps these businesses keep their operations going at peak levels.
A commercial litigation funding company does not monitor how you spend your money. The business keeps in touch with your attorney as your litigation progresses. When your case concludes, your lawyer notifies your commercial litigation funding company about the final result.
If you lose your case, your attorney lets your commercial litigation funding company know. The company does not require anything else from you or your attorney at this time. This business takes care of your full funding amount, and you are allowed to keep the money that was given to you.
Repaying Commercial Litigation Funding
Your lawyer handles the entire commercial litigation funding repayment process. To do so, your attorney reaches out to your commercial litigation funding company after you win or settle your case. Your lawyer then uses money from your settlement to cover the cost of your commercial litigation funding.
If you win or settle your case, you will receive a settlement. Your attorney deducts the total of your commercial litigation funding from this amount. Next, your lawyer sends a check to your commercial litigation funding company for this total, and your funding is paid in full.
Meanwhile, you keep the remaining amount of your settlement minus any attorney fees or other legal costs. Your attorney will give you a check for this amount. When you receive this check, your case is complete.
Should I Get Commercial Litigation Funding?
Commercial litigation funding can be beneficial if your company is concerned about its finances and involved in a lawsuit. The funding provides short-term financial relief since it gives you money to use for the duration of your litigation. It also comes with flexible terms and conditions.
For some businesses, commercial litigation funding represents a great alternative to a traditional loan. You may need to put up collateral to secure a loan from a bank or credit union. This is not required if you want to get commercial litigation funding.
There is no risk with commercial litigation funding, either. Your commercial litigation funding is dependent on your case result. Even if you and your attorney do everything in your power to win or settle our case but still come up short, you are still not responsible for repaying your funding.
How Can I Get Commercial Litigation Funding?
Silver Dollar Financial can help you secure commercial litigation funding. For more information, please get in touch with us today.