Is There a Difference Between Loan & Lawsuit Loan - PowerPoint PPT Presentation

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Is There a Difference Between Loan & Lawsuit Loan
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Is There a Difference Between Loan & Lawsuit Loan

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  1. Is There a Difference Between Loan&Lawsuit Loan Mayfield Settlement Funding http://mayfieldsettlementfunding.com/

  2. What Is A Lawsuit Loan ? • If you are in the middle of a personal injury lawsuit and need money, you may be able to get a lawsuit loan -- an advance against any future lawsuit settlement or award amount. These advances are known by many different names, including: • Lawsuit Loans • Lawsuit Cash Advances • Litigation Financing • Lawsuit Funding • Settlement Funding http://mayfieldsettlementfunding.com/

  3. Definition Of Loan? • According to Merriam-Webster defines “loan” as “money lent at interest”.  But this does little to explain differences between litigation finance and traditional loans.  This is true because the definition fails to assess the repayment terms. • If we search the online encyclopedia for the phrase “credit”, we come up with the following definition: • Credit, transaction between two parties in which one (the creditor or lender) supplies money, goods, services, or securities in return for a promised future payment by the other (the debtor or borrower). Such transactions normally include the payment of interest to the lender. http://mayfieldsettlementfunding.com/

  4. Type Of Loans Basically there are two type of Loans, Secured Loan & Unsecured Loan. Know more here… http://mayfieldsettlementfunding.com/

  5. Secured Loan • Secured loans are “secured” by some type of collateral.  In any “secured transaction”, the debtor pledges a specific collateral through the execution of a “security instrument” and the creditor files notice of that interest in the public record.  We find this situation everyday in mortgage arrangements or the financing of automobile purchases.  The debtor signs the Note, which outlines the terms of the loan, including the rate of interest, time and amount of the repayments, etc. http://mayfieldsettlementfunding.com/

  6. Unsecured Loans • With unsecured debt, there is no collateral pledged from which the creditors’ advance is “secured”.  Instead, in the event of a default, the creditor can simply sue the debtor for the balance of the loans plus whatever penalties, fees or costs as are outlined in the Note.  The creditor retains the right to sue but does not have any right in any specific collateral.  It should be noted the debtors usually pay more interest for unsecured obligations than secured loans. http://mayfieldsettlementfunding.com/

  7. Lawsuit Funding Lawsuit funding contracts differ from traditional loan documents because the lawsuit cash advance must only be repaid IF there is a settlement or other recovery.  In other words, while a loan implies repayment under all circumstances, a lawsuit cash advance is repaid only if a condition is satisfied.  That condition is the plaintiff recovering an award. http://mayfieldsettlementfunding.com/

  8. More About Lawsuit Funding • Legal funding contracts are not governed by usury laws in most states.  Accordingly, there is no limit to the amount charged for lawsuit cash advances.  That means some lawsuit funding companies charge oppressive rates – simply because they can get away with it.  That is the bad news for those wishing to obtain funding. • There is good news and the good news is that this type of specialty finance is available for clients who need it.  15 years ago, plaintiffs were forced to ask their attorneys for advances on cases.  But most state ethical laws prohibited this practice and still do.  • Further, as the business has matured, some companies are able to offer a “fair rate” for cash advances on pending litigation.  Often, the pre-settlement loans carry less interest than a credit card.  This is a godsend for clients strapped for cash and frequently a good financial deal as well. http://mayfieldsettlementfunding.com/

  9. Thank You Thank You For your interest, we hope we have tried to answer much of your doubts. http://mayfieldsettlementfunding.com/

  10. Phone: 1 (888) 800-8400 Text: (602) 628-0574 Email: Comments@Mayfieldfunding.com http://mayfieldsettlementfunding.com/