This is a question we often hear from many of our clients. A rule of thumb depending upon the injury and estimated compensation for your case you can typically borrow anywhere from 5%-20-25% of the estimated value of your lawsuit. For instance if your lawsuit is estimated at $100,000 you may be eligible to borrow up to 25% of the case ie. 25K. In some cases a little more or less.
When evaluating how much a plaintiff can borrow for a personal injury or commercial litigation case a lender will request from the plaintiffs attorney documents outlining the case. These documents are used to give a fair assessment of the value of your case. If the lender believes your case is worth a certain amount they will offer you a percentage of that amount (typical numbers above). The more the lender believes your case is worth the more money they will be willing to loan you.
The rates are contingent upon the strength of your case and also the case type. The stronger the case the more likely the lower the rates. This is because lawsuit funding is typically non recourse meaning if you lose you don’t pay back the lender. The case type has to do with what type of personal injury. If you were involved in a car accident than your rates are generally lower than a medical malpractice lawsuit. This is because a lender believes negligence is easier proven in car accident (cleaner and clearer cases). I can say the percentages are scattered all around depending upon type of injury and strength of case. It is very hard to give you a number on each without fully looking at your case a little closer.
When we look at a case prior to sending it out for bid we generally look at the type of accident and the amount requested. Many lenders prefer different types of funding, ie. pre settlement vs. structured settlement. This can also play a part in the type of rates you will receive.
If you decide to apply for funding with LawLeaf we can get an answer to you almost immediately just so long as we are able to get the case documents from your attorney.