Home » Posts tagged 'Business'

Tag Archives: Business

This is the Best time to start a Legal Financing Company via PNN

Investors and consumers are already taking notice of the benefits of legal financing, and as the number of civil cases continues to rise, so too will demand for lawsuit loans.

If you haven’t heard about legal financing or lawsuit loans before, that may change. The practice of legal financing dates back to the early 1990s, but it didn’t take off in the United States until Credit Suisse Securities launched a litigation lending program in 2006 that later became its own company in 2012.

Legal financing, often referred to as a lawsuit loan, is a cash advance that a lender gives to someone in exchange for a portion of their potential settlement or judgment in a lawsuit. In short, legal finance lenders bet on lawsuits that they think will win.

While lawsuit loans are a risky investment, the industry is full of successful startups with millions of dollars in available funding. Since legal financing grew nearly 400% between 2013 and 2017, this may be the perfect time to consider the potential of starting a legal financing company.

How Lawsuit Loans Work.

Lawsuit loans are an immediate cash payment to plaintiffs in exchange for a portion of their compensation when they settle or win their case. Basically, legal financing lenders purchase a portion of the settlement. In addition, lenders charge interest on top of the amount of money borrowed due to the high risk of their investment.

However, unlike traditional loans, lawsuit loans don’t require a credit check, income verification, or employment history. Lenders only approve funding based on the strength of the case, so if a plaintiff has a strong case that is 6-12 months away from a settlement, they are more likely to receive a loan, as described on pre settlement loan websites such as Nova Legal Funding and others.

In addition, lawsuit loans are non-recourse, so the plaintiff doesn’t have to pay back the money they borrowed if they lose the case. The lender accepts the entirety of that risk.

Factors Contributing to the Growth of the Legal Financing Industry.

There are several reasons why legal financing continues to grow throughout the United States. A combination of lax regulations and an increase in personal injury cases contributes significantly to the industry’s growth and shows no signs of slowing down.

According to the New Yorker, the legal financing industry had more than $3 billion in assets in 2016. Another report by Burford Capital found that the number of lawyers in the United States who helped a client apply for a lawsuit loan quadrupled between 2013 and 2015, from 7% to 28%. While competition is hot, it’s clear that legal financing is increasing in demand.

Lack of Regulation.

Since legal financing is considered an investment or payment, it does not have the same federal and state regulations as traditional lending. In fact, most states don’t have any rules regarding legal funding since financing is non-recourse. This makes it easy for entrepreneurs to start legal financing businesses and obtain investors.

However, a few states have new regulations for lawsuit loans in place. For example, the state of Colorado settled a lawsuit in 2015 with a lender after the state’s Supreme Court determined that legal financing was subject to Colorado’s Uniform Consumer Credit Code and that the amount of interest charged is predatory under Colorado lending laws.

More People are Filing Personal Injury Lawsuits.

While the number of civil cases filed in district courts continues to increase, personal injury claims have grown the most.

According to an annual report from US Courts, the total number of personal injury lawsuits filed in a district court almost doubled between 1990 and 2019. In addition, the number of personal injury claims filed between 2018 and 2019 alone increased by more than 20%. In 2019, personal injury claims made up nearly one-third of all civil cases in the US. Most personal injury cases involved motor vehicle accidents, medical malpractice, defective pharmaceuticals, and marine injuries.

Lawsuit Loans Have a High Rate of Return if Successful.

Most lenders have interest rates ranging from 3-4% monthly, or 36-60% annually. Since lawsuits often take months or years to settle or receive a judgment, the rate of return for lenders is high. For example, if a lender allows a plaintiff to borrow $10,000 at an interest rate of 36% compounded monthly and the case settles in 6 months, the lender receives $10,000 plus an additional $1,800 in interest.

Lenders are Forming Trade Groups to Establish Ethical Guidelines.

Since there are so many legal financing companies operating and few federal regulations, some of the industry’s leading lenders decided to start a trade group called the American Legal Finance Association, or ALFA. With more than 30 members, ALFA provides 90% of all legal financing in the United States.

Members of the organization have their own code of conduct with protections in place for consumers, including restrictions on overfunding, false advertising, and referral commissions. ALFA also supports new consumer protection regulations for the industry and highlights third-party research about legal financing.

Personal Injury Lawsuits Have a High Value.

Since legal financing lenders need the strongest cases possible to make the risk worth their time, they typically fund personal injury cases where negligence plays a significant role.

According to a survey conducted by Nolo, around 70% of personal injury plaintiffs receive a settlement or judgment. Out of all of the plaintiffs surveyed, half received a settlement or judgment worth $10,001 to more than $75,000. Most importantly, plaintiffs who retained a lawyer were more likely to win their case and received more than $75,000 on average. Plaintiffs without a lawyer received almost 80% less compensation as well.

This is the reason why most legal financing lenders require applicants to have a lawyer representing their case. Not only does it significantly reduce the risk of lending, but it also means a potentially higher return.

This is the Best Time to Consider a Legal Financing Startup.

Based on the increased popularity of lawsuit loans, lack of regulations, and high return on lawsuit investments, this is the best time to start a legal financing company. Investors and consumers are already taking notice of the benefits of legal financing, and as the number of civil cases continues to rise, so too will demand for lawsuit loans.

Source link

[ad_1] If you haven’t heard about legal financing or lawsuit loans before, that may change. The practice of legal financing dates back to the early 1990s, but it didn’t take off in the United States until Credit Suiss Securities launched a litigation lending program in 2006 that later became its own company in 2012. Legal […]

via The New Startup: Legal Financing & Lawsuit Loans – Young Upstarts — PNN – Paper News Network

Payless ShoeSource expected to close all of its U.S. locations as part of largest retail liquidation – MarketWatch

Payless experiment shows people will pay more for brand name
” />
WATCH | Payless experiment shows people will pay more for brand name

Payless ShoeSource is shuttering all of its 2,100 remaining stores in the U.S. and Puerto Rico, joining a list of iconic names like Toys R Us and Bon-Ton that have closed down in the last year.

The Topeka, Kansas-based chain said Friday it will hold liquidation sales starting Sunday and wind down its e-commerce operations. All of the stores will remain open until at least the end of March and the majority will remain open until May.

The debt-burdened chain filed for Chapter 11 bankruptcy protection in April 2017, closing hundreds of stores as part of its reorganization.

At the time, it had over 4,400 stores in more than 30 countries. It remerged from restructuring four months later with about 3,500 stores and eliminated more than $435 million in debt.

The company, founded in 1956, said that the liquidation doesn’t affect its company’s franchise operations or its Latin American stores, which remain open for business as usual. It lists 18,000 employees worldwide.

Shoppers are increasingly shifting their buying online or heading to discount stores like T.J. Maxx to grab deals on name-brand shoes. That shift has hurt traditional retailers, even low-price outlets like Payless. Heavy debt loads have also handcuffed retailers, leaving them less flexible to invest in their businesses.

But bankruptcies and store closures will continue through 2019 so there’s “no light at the end of the tunnel,” according to a report by Coresight Research.

Before this announcement, there have been 2,187 U.S. store closing announcements this year, with Gymboree and Ascena Retail, the parent of Lane Bryant and other brands, accounting for more than half the total, according to the research firm. This year’s total is up 23 percent from the 1,776 announcements a year ago. Year-to-date, retailers have announced 1,411 store openings, offsetting 65 percent of store closures, it said.

Google News

Payless ShoeSource expected to close all of its U.S. locations as part of largest retail liquidation

Payless ShoeSource will close all of its approximately 2,100 stores in the U.S. and Puerto Rico as part of the largest retail liquidation ever, the Wall Street …

View full coverage on Google News

View original post

Estate Planning & Land Trust

Planning for Future by Estate Planning & Land Trust

Section 502(e)(1) states the general rule requiring the court to disallow any claim for reimbursement or contribution of an entity that is liable with the debtor on, or that has secured, the claim of a creditor to any extent that the creditor’s claim against the estate is disallowed.

See how our estate planning and trust services can help you accomplish your many goals.

Planning for the future

Our planning services are fully integrated to meet your many objectives.

Estate planning and strategic wealth transfer

Let us help develop a plan to efficiently transfer wealth to your heirs and favorite charities, protect your family and business, grow your assets, and minimize taxes.

Philanthropic planning

Find out the best ways to support causes you believe in, promote family values and social responsibility, and leverage the tax-deductible nature of charitable gifts.

Business succession planning

Benefit from our guidance as you face key moments of transition in the life cycle of your business.

Executive benefit planning

Find out how our services can help you reduce risk, create liquidity, and defer taxes with your concentrated corporate stock.

Insurance planning

Get guidance on how you can structure your insurance plan to avoid costly estate and federal tax liabilities and ensure you have the coverage you need.

Divorce planning

Learn how we can help protect your best interests with guidance and sound financial solutions.

Benefitting from personal trusts

We’ll identify and implement appropriate trust vehicles to accomplish your goals.

Trustee services

Take advantage of the many wealth transfer and tax saving benefits a personal trust offers from highly experienced professionals in fiduciary oversight.

Personal trust administration

Experience how generations of families have benefitted from our considerable trust management skill.

Personal trusts in Delaware

Learn about the many advantages the state of Delaware offers for trusts, and how we’ve helped shape Delaware trust law for decades.

Speak with our advisors to ensure that your plan is on track and that you are making the most of your trust opportunities.

Don DiCarlo

Don DiCarlo
Head of Strategic Planning Advice

‘The Suffering Is Staggering.’ Victims Could Get $4.1 Million After Needless Cancer Treatments via TIME

(DETROIT) — An expert is recommending approval of $4.1 million in claims, including $2rodwin million in funeral costs, filed by victims of a Detroit-area doctor who committed fraud by putting hundreds of patients through needless cancer treatments.

Randi Roth gave an update Tuesday to a judge who is overseeing the case of Dr. Farid Fata. She said 81 percent of 741 claims are fully or partly eligible for restitution.

Fata is serving a 45-year prison sentence for fraud, money laundering and conspiracy. He admitted putting patients through grueling chemotherapy — even when they didn’t have cancer.

Fata’s victims can seek reimbursement for funeral costs, remedial health care and mental health treatment. Out-of-pocket costs paid to the doctor and his clinics are also eligible for repayment.

Pain and suffering and lost wages, however, aren’t covered.

“The suffering is staggering,” said Roth, an attorney in St. Paul, Minnesota, who specializes in deciding claims in large-scale litigation. “All of us want to help as much as possible but the law is strict.”

Final approval in the months ahead rests with U.S. District Judge Paul Borman. The restitution process includes a way for patients or their family to appeal if Roth determined a claim wasn’t eligible.

“This is a huge situation with tragic consequences. I’m going to be on top of it,” Borman said.

The judge said patients and families are first in line for restitution, followed by insurance companies and the federal government’s Medicare program.

Outside court, Teddy Howard, 57, of suburban Detroit said he’s frustrated. He said his claim has been rejected because his doctors won’t certify that some of his subsequent health care was related to the harm caused by repeated doses of chemotherapy ordered by Fata.

Howard said he had a liver transplant and has also lost eight teeth.

“I didn’t think I’d be crawling around, begging. This is crazy,” he said.

  • Share

(DETROIT) — An expert is recommending approval of $4.1 million in claims, including $2 million in funeral costs, filed by victims of a Detroit-area doctor who committed fraud by putting hundreds of patients through needless cancer treatments. Randi Roth gave an update Tuesday to a judge who is overseeing the case of Dr. Farid Fata.…

via ‘The Suffering Is Staggering.’ Victims Could Get $4.1 Million After Needless Cancer Treatments — TIME

Bend the curve with Average Contract Value (ACV) — with me

SaaS entrepreneurs know how hard it is to scale their companies from zero to their first few $M in revenue. I’ve posted before about misconceptions about scaling SaaS businesses – namely that adding more sales pods will lead to exponential growth. While pod additions are part of it, the single most powerful lever in driving exponential […]

via Bend the curve with Average Contract Value (ACV) — vcwithme