Why Apply for Commercial Litigation Financing? | Benefits of Commercial Litigation Financing

Why Apply for Commercial Litigation Financing?

For any enterprise, being forced to enter into litigation can appear to be a major setback. Litigation places a strain on business owners and their employees, and it draws considerable time away from the business. You will spend hours meeting with attorneys, gathering documents, reviewing evidence and making court appearances. This takes significant resources away from the business of running your business. Worse yet, your business may have lost sales and suffered financially from the situation that led to the litigation.

The financial pressures of commercial litigation can frighten away suppliers, investors and customers. As a result, many executives are tempted to accept a low-ball offer from the defendant simply because they need the cash. Some owners are forced to close down their businesses until the litigation has worked its way through the courts. A commercial litigation advance enables you and your attorney to negotiate from strength and keep your business operating!

Benefits of Commercial Litigation Financing

Unlike a loan that has to be paid back regardless of the outcome of your lawsuit, commercial litigation financing is an advance against the expected proceeds of your litigation:

No Personal Guarantee: Unlike bank loans that almost always require a personal guarantee by the owners of the business, commercial litigation financing is a non-recourse advance against your pending claim, not against the cash flow of your business or your personal assets.
No Monthly or Quarterly Payments: Since a commercial litigation advance is not a loan, no payments are made on the principal or interest. Instead of interest, we charge a "risk premium" for the advance, and you pay back the advance plus the accumulated risk premium in one lump sum from the proceeds of your settlement.
Non-Recourse: Best of all, you only pay back the advance and risk premium when you win your case at trial or you and the defendant reach an out-of-court settlement. If you lose your case at trial and fail to reach a settlement, you owe us nothing!

You begin the application process by calling LawMax at 1-877-253-5531 and applying right over the phone, or by applying on-line. A LawMax underwriter will review your application, then contact your attorney to discuss the case. We will ask your attorney to provide supporting documentation, and there may be an underwriting fee to cover third-party due diligence.

We will make a commercial litigation financing decision as quickly as we can since we understand that you need the cash as soon as possible. We will let you know how much we can advance and detail the terms of our offer. Once you and your attorney review and accept our advance, you can have a check in 24 hours.

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