This article is by Brian Ofsie, a senior vice president at Delancey Street. At Delancey Street, Brian Ofsie focusses on identifying the financial needs of clients, and matching them with the best solutions possible. Brian is responsible for helping clients find the best possible solution out of the arsenal of financial solutions Delancey Street offers to its client.
This guest post by Brian Ofsie discusses why settlement loans and litigation financing are so important, and helpful, for both attorneys and plaintiffs alike. First and foremost, lawsuit funding is a type of cash advance. According to Brian Ofsie, lawsuit funding is non-recourse – which means if you lose your case, you don’t owe Delancey Street a penny. Many types of traditional loans have to be repaid regardless of the outcome. Due to the fact lawsuit funding is a type of cash advance, your ability to repay, your credit score, etc, is not a factor. Moreover, you can get up to 20-30% of the potential value of your lawsuit claim. Because of the fact it’s non-recourse, many attorneys and plaintiffs alike gravitate towards lawsuit funding as a form of financing when they are in a cash crunch. Even though it’s “more expensive,” than traditional financing – like a personal loan, the fact it’s non-recourse makes it super attractive.
Brian Ofsie discusses Delancey
According to Brian Ofsie, a majority of the clients Delancey Street attracts are plaintiffs who are the victims of personal injuries that need financing. They are planning on using the financing in order to pay for their personal expenses. By using litigation financing from Delancey Street, they can get funding to pay for things like their rent, food, child support ,etc, without having to worry about their credit score, or other issues. Moreover, with lawsuit loans, you don’t have to worry about repaying the loan if you lose the case. Bottom line, it’s a win-win scenario.
From Brian Ofsie’s experience, many attorneys also consider lawsuit funding. Due to the fact personal injury lawyers work on a non-recourse basis/contingency fee basis, they have to float a lot of the expenses associated with their case. By getting a lawsuit loan the attorney can afford to pay for expenses like an expert witness, etc. Bottom line, if you’re in a cash crunch – getting a lawsuit loan is a GREAT idea.
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