Lower Advance Rates for Pre-Settlement Cases
by Anonymous

HIGHLANDS RANCH, CO - July 31, 2003 – When waiting for a lawsuit to go to trial or to settle, and money is needed now (perhaps due to mounting medical bills, house bills, inability to work, etc.), there is an option to receive anadvance on the settlement. The good news is that it now costs less to receive the advance.

Pre-settlement funding is normally done on non-recourse basis – this means the risk is on the funder, not on the client. If the lawsuit does not win, the client does not need to pay back the advance. Typically this is an expensive option, and a client is encouraged to take out only what is needed.

The industry-wide rate for this funding has been 15% per month for quite some time, but recently the rates have dropped considerably, so clients are not so stressed with the advance. Double ii's Services can now offer lower advance rates of about ½ to 1 if paid back within six to twelve months. Several different options are available.

One option is a flat 8.95% compounded monthly, with a 6 month minimum. A better plan in most cases requires fees of 10% of the advance plus either $250 or $350 (this depends on whether the advance is more or less than $5000), and then 3-6% per month, and may have a minimum. No up front fees are collected. These plans are so much better than previously offered and can help the client get back on his feet.

This type of funding is not available in every state, but most states will allow it. There are terms and restrictions, and the case must be good enough to win. Class action suits are acceptable, such as the Sulzer hip transplant, but others are difficult, such as Fen-Phen and breast implants. Certain strong cases may be able to get funded, but no certainty is implied when an application is made.





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