Commercial Litigation Financing Provides Working Capital
Businesses are sometimes forced to go to court to receive justice. Commercial litigation financing provides those businesses with working capital while their cases work their way through the legal system. Commercial litigation financing bridges the gap between their immediate need for cash and the funds they expect to receive as part of their settlement. It can take from several months to a year or longer for a personal injury lawsuit to come to trial, but commercial litigation – because of the complexity of the issues – can take even longer. Even years. LawMax advances cash to businesses that are plaintiffs in commercial litigation, and does so on a non-recourse basis.

Plenty of Distractions
Pursuing a commercial lawsuit draws time and resources away from the business of running your business. Add to that the financial pressures that a lawsuit can create for your enterprise. LawMax does not make loans or provide lines of credit. That’s what banks do. LawMax advances cash that your business can use for any purpose – replace inventory, buy equipment, pay past-due bills or cover operating expenses – on a non-recourse basis. The advance plus the risk premium on that advance is paid back from the proceeds of the lawsuit, and only if you win your case or reach an out-of-court settlement.

Commercial Litigation Financing versus a Bank Loan or Line of Credit
Many businesses chose to take advantage of a commercial litigation financing, even though it is more expensive than a bank loan or bank line of credit, for several reasons. Here is a side-by-side comparison.

Bank Loan or Line of Credit

• Your business may not qualify for a conventional financing unless it has excellent credit, a good credit rating and considerable net worth.
• Even if you qualify, the bank will very likely require personal guarantees by the owners
• Your loan or line of credit will create yet another monthly payment that has to be met on top of all your other obligations.
• Once you max out your line of credit, the bank cuts you off.
• The bank wants to know everything about you and your business, and places conditions on you and the business.
• The bank will insist on strict re-payment terms, and will not hesitate to attach your assets – such as your receivables – to get paid!

Litigation Financing from LawMax

• Qualifying for litigation financing is based on the quality of your legal claim, not on your cash flow, D&B rating or net worth.
• NO personal guarantees. Ever. We do, however, take a lien against the proceeds of your lawsuit. That’s our collateral.
• NO monthly or quarterly payments. The risk premium we charge accumulates during the pendency of your case, and we are paid back in one lump sum when your case settles, and we are repaid from the proceeds of the settlement.
• If you receive an advance, but you need more capital, come back to us. We often make multiple cash advances.
• We will require supporting documentation from your attorney, and we may need to bring in outside counsel to perform due diligence.
• LawMax only gets paid back if and when you win your case, and we are repaid from the proceeds of the settlement. Should you lose at trial or be forced to abandon your claim, you keep the money we advanced you and you, your business and your attorney owe us nothing!

For more information about commercial litigation financing, visit www.commercial-litigation-financing.com.

To apply for commercial litigation financing for your business, click here.

Questions? Call 877-6-LAWMAX (877-652-9629).