How pre and post-settlement financing works

January 26, 20182 min read
How pre and post-settlement financing works
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Pre-settlement finance

When it comes to Legal Finance, plaintiffs may use legal funding to pay for a variety of expenses including lawsuit-related expenses and for general liquidity and personal needs. 

This is an advance given to plaintiffs at any time before final adjudication of their case or the parties have entered into a settlement agreement.

Post-settlement financing

This occurs after a legal case has been won or settled, while the plaintiff or the law firm (e.g., if it was a contingency fee arrangement) is awaiting receipt of payment.

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Yieldstreet evaluates all PFC portfolios before deciding to participate in a curated, vetted, diversified portfolio of advances. Pre- and post-settlement portfolios will typically include several cases. 

Yieldstreet investors generally receive interest payments and a return of their principal in line with the targeted returns and projections described in the offering materials for the particular opportunity.

With pre-settlement financing, the liens are exercised as cases are settled or won, and investors are repaid their principal and interest in multiple event-based payments.

With post-settlement financing, the lien is placed on the funds awarded, and investors are paid principal and interest when the funds are transferred into a bank-controlled escrow account (usually this means a one-time payment to investors). 

For additional questions regarding Yieldstreet or our legal finance offerings, please email us at [email protected]

For accredited investors only. Past performance is no guarantee of future results. Any historical returns, expected or target returns or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

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