At Verum Funding we have different types of attorney litigation funding for firms. The following is a list of what to fix or know about before getting funding and helping you get the best possible chance to get pre-litigation funding for you and the firm.
Have All Court Documents Ready For Email For Single Case Attorney Litigation Funding.
We will need to see all the court documents. From an auto accident case to a complex patent infringement case, we must see everything. Those documents help determine if the case is worth investing in or not. So having the docs ready to go before the ask for funding will help expedite the process.
Has There Been A Prior Attorney Litigation Funding?
Has there been prior funding for the firm? Has the funding been paid off or is there still money owed? If so, who is it with? Are they willing to be bought out a face value or would they take less?
Single Case Or Portfolio Attorney Litigation Funding?
Do you have a single case that needs to be financed or do you have a portfolio? If it is a single case, please have all filings ready to be sent out. If it is a portfolio that needs to be funded, please have a list of cases in excel form, filing number, where it is filed at, amount going after, what type of lawsuit is it, and percentage that the firm will get when successful.
What Is The Status Of Your Cases?
Do any of them look like they will be settling soon? Where are they at in litigation? Have any settlement offers been made? What is the projection of when these cases will be settled? All these questions will be asked, and they need to have answers.
Are You Ready To Get On The Phone Or Respond Via Email?
Can you communicate about the case? Once the request for funding has been submitted usually a phone call or email happens shortly thereafter. If the underwriter cannot get ahold of you then the funding, ask will be denied. So, make sure that you have time to talk about your case.
Make Sure To Give As Much Information As Possible.
Many times, a firm is turned down from litigation funding due to there is not enough information to make a complete assessment on the portfolio or the case. For example, where the case is at in litigation, any offers on the table, the case or portfolio budget, what are the foreseen hurdles that might arise, damages, artwork searches, IPR’s, and so on. Giving this information will not only help the underwriter understand the case but also shows that the firm is ready and has done their due diligence needed to establish how much funding is needed.
Any Pending Lawsuits Against You Or The Firm?
This is never a fun conversation but a necessary one. Showing transparency is exactly what is needed when talking to the underwriter. When discovered in due diligence it will usually end any funding talks regardless of where they are at. Being up front about everything will help the funding ask go as far as it possibly can.
At The Most You Can Get Up To 15% Of What The Case Or Cases Are Trying To Be Settled For.
Most of the time it is even less than that and only up to 10% of what the case is trying to be settled for. Reason being is that this is a non-recourse advance and there is quite a large amount of risk involved. Time is an issue also. The newer the case usually the less money it will see invested into it.
If It Is Portfolio Funding What Is The Portfolio Heavy In & Can You Sell The Cases To The Funding Company For Investing?
When applying for funding and talking to the underwriter it is important to tell the underwriter why your cases are so strong and why they would be a good investment. Along with that you need to sell yourself, as if they like you, it can go a long way.
What Will The Funding Be Used For?
For the funding is needed there needs to be reasons why this funding is needed and what the use of funds are for. Make sure that you have answers for this before speaking with any funder.
Responses Need To Be Timely
This happens to be a big killer of litigation funding. When the firm is looking for funding but do not have the time to return phone calls and or emails. The underwriters start to feel as if this is not a priority for the firm and abandon the due diligence regarding the portfolio and or case. So if litigation funding is a priority make sure that the underwriters know it.
Not Every Firm Is Approved For Attorney Litigation Financing.
Even know you have applied for litigation financing and have followed all the steps outlined above it does not guarantee getting approved for a non-recourse or recourse advance. A good majority of time when there is a “no” it is more of a “not at this time”. There might be need for the case to be at more of advance stage in litigation, past the motion to dismiss, or there needs to be more of a shown value in the portfolio. So, if a no is received it does not mean that 2 months from now it cannot be a yes.
Any Other Questions?
Even know you have applied for litigation financing and have followed all the steps outlined above it does not guarantee getting approved for a non-recourse advance. The following steps just help position you and your case for the best possible ability for litigation financing. If there are any questions, please give us a call at 434-535-5229 or email us at firstname.lastname@example.org. Here at Verum Funding your attorney litigation funding is a priority!