What are Rolling Contracts?
Over the years, you’ve probably heard that you should “read the fine print” before signing anything — whether it’s a medical form or a car note. This is also true for another type of agreement many people may be less familiar with: rolling contracts. Rolling contracts have benefits worth considering when comparing them to a traditional lump sum contract. Here’s a breakdown of what a rolling contract is and some things to review before you select one.
What Is a Rolling Contract?
Rolling contracts provide plaintiffs with lawsuit funding that has more flexibility and lower costs than lump-sum funding contracts. With rolling contracts, fewer fees accrue as the amount funded is lower. This means that instead of receiving plaintiff funding in one lump sum, you can receive monthly checks until you have received your full funding amount. If you find yourself in a position where you do not need the full amount, you can stop the funding amount and only owe fees on what you have accrued.
What to Consider Before Signing a Rolling Contract
Here are some things to keep in mind before scrawling your signature on the dotted line:
- Terms: As with any other document, it’s important to read the terms of a rolling contract carefully to be sure you understand them. Make sure the terms are clear and that you can live up to them.
- Tenure: Be sure the agreement spells out when the next payment is due. You need to know how often the contract will renew.
- Termination Rules: Be certain you understand how to terminate the contract and how to give notice of your intent to terminate.
Lawsuit Funding As a Rolling Contract
If you’re currently pursuing a lawsuit to recover from an illness or injury you’ve sustained because of another’s negligence, you may be eligible for lawsuit funding. Lawsuit funding, also known as litigation funding, can tide you over while you wait for a fair settlement or favorable verdict. While you can receive the money as a lump sum, there are benefits to spreading out the funding amounts you receive through a rolling contract. Doing so allows you to receive consistent payments over months or years. Additionally, if you win your case, the amount that LawCash will receive from the proceeds of your case is usually less with a rolling contract than a lump sum. (If you lose your case, you owe nothing). Contact the LawCash team to learn more or apply online today.