Archive for the ‘Commercial Funding’ Category

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Post Settlement Funding

Friday, July 24th, 2009
commercial funding
Lawsuit Funding asked:


If you are a plaintiff or attorney and you are seeking an advance against a case that has already reached a verdict you have more options. Post settlement lawsuit funding is a term that means a lawsuit cash advance after a case has reached a settlement. This means if you have won a personal injury or commercial litigation dispute and you are waiting for compensation, you can secure a cash advance while waiting for compensation.

Post settlement funding is typically used by plaintiffs and attorneys when compensation is not paid immediately. It is very common that when a lawsuit is settlement payment is not received immediately upon the verdict. In some cases compensation will be paid months after a case is won.

During the litigation process cases can take months or even years before a settlement is reached. For attorneys that take cases on a contingency fee basis oftentimes the defense will hold up these case intentionally in hopes of financially depleting the financial resources of the plaintiff in hopes for smaller settlements. Even when a verdict is won the defense can sometimes hold off payments or even appeal a case.

For some clients that have never been involved in a lawsuit, once they win a case they assume compensation is paid immediately. At LawLeaf we understand that when a lawsuit is won the plaintiff should receive compensation in a reasonable amount of time and although this is likely not the case, we can still help. Post settlement funding is used by plaintiffs that need money now. If you have recently won a settlement and searching for a lawsuit cash advance against future compensation, you still have options. You can seek a post settlement loan with a litigation finance company.

For additional information on post settlement funding visit LawLeaf today.



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Who really caused the sub-prime crises Democrats?

Monday, July 13th, 2009
Asset Based Lending
G.H.CURTISS asked:


The Subprime Debacle
by Dr. Kuni Michael Beasley
30 Years in Gestation

The Democrats are doing a lot to try to pin the subprime debacle on the Republicans and the Bush administration. However, there is a long tail to this problem that just happened to pop at this time.

Now, for the rest of the story. Definitions first.

Fannie Mae is the Federal National Mortgage Association (FNMA), founded in 1938 as a publically traded government sponsored enterprise (GSE) that is stockholder owned that makes loans and issue loan guarantees.
Its cousin is Freddie Mac, the Federal Home Loan Mortgage Corporation (FHLMC), founded in 1970 as another GSE created to expand the secondary market for mortgages. Freddie Mac buys individual mortgages on the secondary market, pooled them into packages, and sold them to investors on the open market.

The secondary market packaged mortgages as collateral and issues securities called collateralized mortgage obligations (CMO) and collateralized debt obligations (CDO), to reduce the risk of individual loans. CMOs are a separate entity that is the actual legal owner of the mortgages it has in a “pool.” CMOs sell bonds to investors based on the value of the mortgages. Investors receive payments based on the increased value of the loans in the pool. The collateral for the bonds are the actual mortgages.

CDOs are a separate entity like CMOs, but are more focused on fixed income assets such as, but not limited to mortgages (and can include commercial mortgages and corporate loans). The focus is cash flow and slices (tranches) of these cash flows are sold to investors.

The subprime mortgage crisis surfaced first in 2007, but it had been incubating for years, indeed, decades. Though roots can be traced back to the New Deal legislation in the 1930’s, the current crisis actually draws its source from the Community Reinvestment Act (CRA) [1977] during the Carter administration that forced banks to lend money to less credit worthy clients. Lending institutions were evaluated to determine if it met the “credit needs of the community” and this was factored into regulatory decisions of the federal government such as applications for facilities, mergers, and acquisitions.

Interest in the CRA resurfaced in the Clinton administration when regulations in the CRA (which could be manipulated without any participation of congress) essentially forced institutions to offer loans to higher risk individuals and businesses. The term “Ninja” loans emerged describing high risk loans made to people with No Income, No Job, and no Assets, but completed a particular bank’s portfolio sufficient to keep federal regulators off their backs.

As access to easy money for high risk borrowers increased, certain institutions began to take advantage of these new opportunities to score fed points and make easy money. Name dropping here: Countrywide began to process, package, and offer investment instruments (CMOs) based on these loans. Revisions to the CRA by the Clinton administration allowed mortgage companies to offer loans without the relative reserve of deposits normally required of banks and other financial institutions.
In addition, this allowed for securitization of sub prime mortgages based on the pooling and packaging of cash-flow producing assets into securities that could be sold to investors - with the asset value not tagged to actual value of the property, but to the value of the cash flow produced by the asset held (sounds weird). The first public securitization of CRA loans was started in 1997 by (familiar name) Bear Stearns!

Now, let’s understand sub-prime loans for a moment. A sub-prime loan is a mortgage offered at a deep discount on interest the first year or two so the borrower could qualify for a larger loan and more expensive house, betting that their economic profile would get better and they could afford large payments later. Adjustable Rate Mortgages (ARMs) are a form of this where the entry rate is low and rises based on certain criteria such as the rates for government securities.

Simply put, lenders (not necessarily banks, but more often mortgage
companies) offered low cost, low entry rate mortgages to people who would not normally qualify for that amount of debt.

These loans were “warehoused” by financial institutions, where a financial institution like Merrill Lynch would set up a separate, but wholly owned mortgage company (First Franklin) to attract loans.
Merrill Lynch would retain control of the loans as a “trustee” or “servicer,” and derive benefits from fees for “managing” the loans and increase assets by keeping escrow deposits. In turn, these loans would be sold to Fannie Mae or Freddie Mac (who were assumed to guarantee the loans), who, in turn, repackaged them for the secondary market.

In 2003 the Bush administration tried to head-off what they saw as a potential crisis by moving the supervision of Fannie Mae and Freddie Mac under a new agency

Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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Where can I get a $10-$20k loan?

Wednesday, July 8th, 2009
Asset Based Lending
David S asked:


More asset based lending or hard/private money with no upfront fees. Looking to get a small business with a down payment of that amount. I’m in NY.

Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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What does the US Commodity Futures Trading Commission mean by “Commercial”?

Sunday, July 5th, 2009
commercial funding
nothing asked:


The CFTC reports a weekly Commitment of Traders report for commodity futures. They split the commitment between “non-commercial” and “commercial”. Is non-commercial individual investors? Is commercial investment banks and funds?

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Lawsuit Funding

Wednesday, July 1st, 2009
commercial funding
Lawsuit Funding asked:


If you are searching for lawsuit funding you should begin by contacting LawLeaf today!

Lawsuit funding can be defined as a lawsuit cash advance against a pending personal injury lawsuit. The most common lawsuit funding types are those of pre settlement funding cases. There are several benefits for those people that appy for lawsuit funding. First, lawsuit funding for personal injury cases are typically loaned as non recourse, meaning you don’t pay back the lender unless you win your claim Second, it can help you pay down debt while keeping your case alive. Oftentimes people settle for less compensation because they are in need of cash.

Prior to accepting a settlement think about the repercussions of ongoing medical expenses and other expenses related to the accident. Its important to understand once a case is settled, you can’t receive additional monies at a later date.

Because most personal injury lawyers advice their clients to seek ongoing medical treatment prior to settlement the amount of time that can lapse prior to compensation can be long. A lawyer should never advise their client to take a quick settlement without going through proper medical evaluation.

There are essentially four different types of lawsuit funding advances. Depending upon your situation will depend upon what type of funding to apply for.

The 4 different types of lawsuit funding options include pre settlement funding, structured settlement annuity payouts, commercial litigation financing and law firm loans.



Pre-settlement funding - personal injury related accidents involving the plaintiff / victim

Structured settlement - case has already settled and advancement is against monthly or yearly payouts

Commercial Litigation Funding - includes cases such as breach of contract, class action and discrimination cases

Law firm loans - advancement both to a firm or for personal injury related cases.



Depending upon which type of option you are considering will determine which type of company you will need to deal with.

LawLeaf an online funding service works with a network of lawsuit funding lenders who provide cash advances for all 4 different options. If you are considering lawsuit funding you should contact LawLeaf today. By applying with LawLeaf you can take advantage of their vast network of lenders and their willingness to compete for your business.



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Lucent Technologies: evaluate the asset, debt, and equity structure?

Monday, June 29th, 2009
Asset Based Lending
Brooklyn2005 asked:


Executive Summary We design and deliver the systems, software and services that drive next-generation communications networks. Backed by Bell Labs research and development, we use our strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for our customers, while enabling them to quickly deploy and better manage their networks. Our customer base includes communications service providers, governments and enterprises worldwide. We have three segments organized around the products and services we sell. The reportable segments are Integrated Network Solutions (“INS”), Mobility Solutions (“Mobility”) and Lucent Worldwide Services (“Services”). INS provides a broad range of software and wireline equipment related to voice networking (primarily consisting of switching products, which we sometimes refer to as convergence solutions, and voice messaging products), data and network management (primarily consisting of access and related data networking equipment and operating support software) and optical networking. Mobility provides software and wireless equipment to support radio access and core networks. Services provides deployment, maintenance, professional and managed services in support of both our product offerings as well as multi-vendor networks. Beginning in fiscal 2001, the global telecommunications market deteriorated, resulting from a decrease in the competitive local exchange carrier market and a significant reduction in capital spending by established service providers.This trend intensified during fiscal 2002 and continued into fiscal 2003. Reasons for the market deterioration included general economic slowdown, network overcapacity, customer bankruptcies, network build-out delays and limited availability of capital. We believe that the market for telecommunications equipment has stabilized and is starting to grow in certain areas. The growing demands of enterprises and consumers for additional services tailored to their needs is creating the need for a new convergence of networks, technologies and applications. Required 1. Using the Consolidated Balance Sheets for Lucent Technologies for September 30, 2004 and 2003, prepare a common-size balance sheet. 2. Evaluate the asset, debt, and equity structure of Lucent Technologies, as well as trends and changes found on the common-size balance sheet. 3. What concerns would investors and creditors have based on only this information? 4. What additional financial and nonfinancial information would investors and creditors need to make investing and lending decisions for Lucent Technologies? LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in Millions, Except per Share Amounts) September 30, September 30, 2004 2003 Assets Cash and cash equivalents $ 3,379 $ 3,821 Marketable securities 858 686 Receivables 1,359 1,511 Inventories 822 632 Other current assets 1,813 1,213 Total current assets 8,231 7,863 Marketable securities 636 — Property, plant, and equipment, net 1,376 1,593 Prepaid pension costs 5,358 4,659 Goodwill and other acquired intangibles, net 434 188 Other assets 928 1,608 Total assets $ 16,963 $ 15,911 Liabilities Accounts payable $ 872 $ 1,072 Payroll and benefit-related liabilities 1,232 1,080 Debt maturing within one year 1 389 Other current liabilities 2,361 2,393 Total current liabilities 4,466 4,934 Postretirement and postemployment benefit liabilities 4,881 4,669 Pension liabilities 1,874 2,494 Long-term debt 4,837 4,439 Liability to subsidiary trust issuing preferred securities 1,152 1,152 Other liabilities 1,132 1,594 Total liabilities 18,342 19,282 Commitments and contingencies 8.00% redeemable convertible preferred stock — 868 Shareowners’ Deficit Preferred stock—par value $1.00 per share; authorized shares: 250; issued and outstanding: none — — Common stock—par value $.01 per share;Authorized shares: 10,000; 4,396 issued and 4,395 outstanding shares as of September 30, 2004,and 4,170 issued and 4,169 outstanding shares as of September 30, 2003 44 42 Additional paid-in capital 23,005 22,252 Accumulated deficit (20,793) (22,795) Accumulated other comprehensive loss (3,635) (3,738) Total shareowners’ deficit (1,379) (4,239) Total liabilities, redeemable convertible preferred stock and shareowners’ deficit $ 16,963 $ 15911

Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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Commercial Litigation Financing

Sunday, June 28th, 2009
commercial funding
Lawsuit Funding asked:


Commercial litigation funding has become popular within the legal finance industry. There are two variations of commercial litigation funding. The first is funding for the plainitiff & second is funding for the attorney. When a lawsuit funding company provides commercial litigation financing for a plaintiff they are providing funding as a pre settlement. In laymen terms this means before a case has reached a verdict.

This type of funding can be advanced to both an individual or company. For instance if a company is in a copyright infringement case they may secure funding to help pay for fees directly or indirectly related to the legal battle. Some companies will secure funding to help pay for business expenses such as salaries & insurance benefits. Surely each company may secure funding for different reasons however the way you secure funding is consistantly the same.

No different than a company an individual who is in a dispute may also be eligible to secure commerical litigation financing. When an individual secures financing for a commercial dispute they too can use the money however they deem fit. Using the same scenario an individual may have put up tens of thousands of dollars copyrighting a product only to find out a company or another individual is producing the product without consent. The company may or may not have profit from the item regardless they are still committed copyright infringement which can adversely effect the plaintiffs ability to profit from his product.

Attorney’s can also apply for lawsuit loans for commercial litigation cases. When an attorney secures financing they oftentimes need the money to help pay for costs directly associated with the case. For instance if an attorney is fighting a copyright infringment case against a large manufacture chances are the company has hired a team of defense attorney to handle the case. Oftentimes these companies have deep pockets and willing to spend as much money litigating the case as necessary. For smaller law firms this could mean the difference of winning full compensation or going broke trying to litigate a multi-million dollar case.

Regardless of the scenario when someone decides to secure commercial litigation financing they will do so through a lawsuit funding company. Lawsuit funding is much different than a bank. A bank would never loan money against a pending lawsuit nor would they loan money on a contingency fee basis. For most pre settlement cases the loan comes as non recourse meaning you only pay back the lender if you win the case.

At LawLeaf we understand that each case is different however the process of securing lawsuit funding is the same. When we receive an application for commercial litigation financing we will process each application the same. When a plaintiff or attorney applies for lawsuit funding through LawLeaf they can expect a fast approval process with a competitive bid. While not all cases qualify, we do our best in getting each client the funding they need. For additional information on LawLeaf please visit our website today.



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Lawsuit Funding Options for You

Saturday, June 27th, 2009
commercial funding
Lawsuit Funding asked:


Lawsuit funding has become increasingly popular amongst plaintiffs looking to extend their personal injury cases in hopes for larger settlements. Due to the downturn in the economy and recent job loss lawsuit funding is now becoming a more viable option. The plaintiffs that tend to use lawsuit funding as an option are those people who are strapped for cash and need help paying bills and out of pocket expenses prior to a legal case reaching a settlement.

Over the last few years, lawsuit funding has become a phenomena within the legal community. While many attorneys use lawsuit funding as a way to litigate class action lawsuits & large personal injury cases, many are advising their clients to investigate this option to help keep their case alive.  Due to the deep pockets of insurance companies and corporations, litigation can extend out for years before a verdict is reached. These companies have tenacious defense teams with deep pockets willing to hold up a verdict at all costs. Most companies will intentionally hold up a case in hopes for a lesser settlement. It is always recommended that a client never prematurely accept an offer without fully understanding the financial consequences at hand. An experienced personal injury attorney will advise his client to seek ongoing medical treatment prior to accepting a less offer.

When a company provides funding for a legal case the money does not come as a loan. Lawsuit funding is a financial arrangement between the lender or investment company and the plaintiff. A loan is defined as money that is borrowed by a person or company which will be paid back within a certain time period. Lawsuit funding is non recourse meaning money advanced to the plaintiff is contingent upon the outcome of the case. The lender cannot recover payments made if the client’s case is lost, and the client gets to keep the full amount of the advancement.

When a person decides to hire legal representation  to help fight for their legal battle they oftentimes have an arrangement to pay the attorney a contingent fee. This fee is typically a percentage of the winnings from the case. If the plaintiff wins the case, the personal injury attorney will be the first person to receive compensation. If a person decides to secure lawsuit funding as an option the lender would be the next in line to receive payment. The remainder of the monies left over would be paid directly to the plaintiff.

If the amount of money won by the plaintiff is less than what was borrowed, the finance company will receive the remaining amount of money, only after the attorney is paid their fee. The remainder balance is not paid back to the lender.

There four different lawsuit funding types include:



Pre settlement funding

Structured settlement funding

Commercial litigation financing

Law Firm loans



While alternative methods are preferred by some lawsuit funding is becoming a viable option within the legal industry.

Over the last few years, lawsuit funding has become a phenomena within the legal community. While many attorneys use lawsuit funding as a way to litigate class action lawsuits & large personal injury cases, many are advising their clients to investigate this option to help keep their case alive.  Due to the deep pockets of insurance companies and corporations, litigation can extend out for years before a verdict is reached. These companies have tenacious defense teams with deep pockets willing to hold up a verdict at all costs. Most companies will intentionally hold up a case in hopes for a lesser settlement. It is always recommended that a client never prematurely accept an offer without fully understanding the financial consequences at hand. An experienced personal injury attorney will advise his client to seek ongoing medical treatment prior to accepting a less offer.

When a company provides funding for a legal case the money does not come as a loan. Lawsuit funding is a financial arrangement between the lender or investment company and the plaintiff. A loan is defined as money that is borrowed by a person or company which will be paid back within a certain time period. Lawsuit funding is non recourse meaning money advanced to the plaintiff is contingent upon the outcome of the case. The lender cannot recover payments made if the client’s case is lost, and the client gets to keep the full amount of the advancement.

When a person decides to hire legal representation  to help fight for their legal battle they oftentimes have an arrangement to pay the attorney a contingent fee. This fee is typically a percentage of the winnings from the case. If the plaintiff wins the case, the personal injury attorney will be the first person to receive compensation. If a person decides to secure lawsuit funding as an option the lender would be the next in line to receive payment. The remainder of the monies left over would be paid directly to the plaintiff.

If the amount of money won by the plaintiff is less than what was borrowed, the finance company will receive the remaining amount of money, only after the attorney is paid their fee. The remainder balance is not paid back to the lender.

There four different lawsuit funding types include:



Pre settlement funding

Structured settlement funding

Commercial litigation financing

Law Firm loans



While alternative methods are preferred by some a settlement loan is becoming a viable option within the legal industry.



Small businesses seeking information on how Hudson Commercial Capital can help during this financial crisis can call 1.212.564-0031 or can visit

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Pre Settlement Funding

Friday, June 12th, 2009
commercial funding
Lawsuit Funding asked:


If you are a plaintiff in a personal injury or commercial litigation lawsuit you may be asking yourself how can I pull money out of my case before settlement. At LawLeaf we often hear from clients that are looking to secure pre settlement funding. Pre settlement lawsuit funding is a non recourse loan provider by a lender to a plaintiff with the understanding if their case settles they must pay back the advance with interest. Pre settlement funding is a way for a plaintiff to pull money out of their case before a case reaches a settlement.

When LawLeaf receives an application for pre settlement funding their main objective is to match their clients with the right lenders within their network. This process is a competitive bid process that can take less than a day for an approval for some clients.

Pre settlement funding can be used by an attorney to leverage a case and by a plaintiff to give the attorney more time to fight for fair and full compensation for their case. Too many times people decide to settle their case prematurely because they are in need of cash. Oftentimes these are the same people whom fully don’t understand that once a case has reached a settlement  agreed upon both parties and compensation is paid, the plaintiff can no longer request additional monies from the defense. Plaintiffs whom are in financial trouble may take an early settlement to help pay for bills and other expenses without fully evaluating the value of their case. Your attorney should advise you of what should be fair and/or not fair.

Pre settlement funding can serve as a stop gap. There are too many insurance companies and other types of companies that have large defense teams with deep pockets. They will often delay or extend cases in hopes the plaintiff will settle for less money. This is a tactic that many companies will use when negotiating or going through the litigation process.

Even when a verdict is reached oftentimes the defense will appeal the case extending the amount of time for compensation payments. When a person is in need of money perhaps a premature settlement may look attractive. However with pre settlement funding you are able to extend the life of your case without having to settle for less money.

If you are currently searching for pre settlement lawsuit funding visit LawLeaf today. LawLeaf is a leading provider of lawsuit funding throughout North America. If you are interested in pre settlement funding apply online with LawLeaf today.



Need Capital for your project? We can help!

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If the majority of the world sees this as the problem then why are Conservatives not listening?

Wednesday, June 10th, 2009
Asset Based Lending
Fly in the Ointment asked:


If the majority of people here and the majority in foreign countries say that the mistakes that were made were due to the Conservative policies of the United States during the past 8 years what do we tell them? Do we tell them that we made a giant error in de-regulating the banks too much, letting greed and excess infiltrate a system naturally inherent to these type of problems of greed in the first place.

It was our policies that allowed for little if any oversight of these banks lending out loans based on little information and poorly gathered information that was not properly checked on. The regulations that we eliminated and opened loopholes in is what created the failure we now see.

Our mistake was letting Wall Street watch itself and by de-regulating the things we needed to allow us to properly follow the money.and toxic bundled assets. Should we just acknowledge we were wrong instead of pushing these same policies on Americans?

Is our problem our ideology in which we think a capitalist system should have no Govt involvement and that we believe the free market should be allowed to run free with no checks on it? How can we keep running on these ideas if America has seen them fail so badly? Should Conservatives present new ideas with more Govt. involvement in the financial sector or should it remain the same?

Need Capital for your project? We can help!

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