When Commercial Litigation Financing Makes Sense

Commercial litigation financing is not for every business that is involved in a commercial lawsuit. However, it may well make sense for your business.
  • You Need Assistance with Cash Flow: Non-recourse commercial litigation advances provide an injection of cash into your business that does not have to be paid back out of your cash flow. You pay back the advance from the proceeds of your litigation settlement, and only if you win your case!
  • You Are Struggling to Keep Your Business Open: Some businesses involved in commercial litigation are forced to close down. However, losing your customer base and letting your employees go will make it impossible to re-start your business once you win your case. Commercial litigation financing allows your business to keep its doors open while your case works its way through the court system.
  • You Need Flexible Use of the Money: You can use your litigation financing proceeds any way you see fit. The cash can be used to cover overhead or payroll, purchase inventory or pay past-due or current obligations. The money is yours to spend as you best see fit.
  • You Want to Negotiate from a Position of Strength: Entering into commercial litigation is almost always a David-versus-Goliath situation. The well-funded defendant can easily intimidate the smaller, under-financed plaintiff. Also, the defendant will make a low-ball offer, hope you need the cash, you will accept their offer, and they can avoid the larger settlement that would result from prolonged litigation.
  • You Want to Avoid Putting Personal Funds into the Business: Business owners involved in commercial litigation are often forced to put their own money into their business to keep it viable, but that can have serious financial and tax implications. Commercial litigation financing avoids endangering your own financial situation to keep your business going.
  • The Bank Has Turned You Down: There is some truth to the old adage that banks only lend money to those who do not need it. If you cannot secure conventional bank financing, you can still apply for commercial litigation financing because the funding decision is not based on your business's cash flow, but on the value of your litigation!
  • Your Credit Line Is Maxed Out: If you've used up your credit line, commercial litigation financing may be your only financing option until your cash flow improves.
  • You Want to Preserve Your Credit Line: You may want to use commercial litigation financing so you can keep a line of credit open as a revolving source of cash you draw down and pay back as your cash position fluctuates.

There is no application fee, and once you apply for financing, you are under no immediate obligation to LawMax. Once an Underwriter has reviewed your application, he will let you know if there will be any underwriting fees involved in evaluating your funding request. At that point, you can determine how you want to proceed.

Apply on-line or call LawMax at 1-877-253-5531 and apply over the phone.


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