Utilization of Credit and Background Checks-Lawsuit Funding
Credit checks are utilised by lenders to review the chances a loan will be returned and the terms of the loan observed. A lawsuit funding transaction is not technologically a loan because in the occurrence the lawsuit is failed, the cash advance does not need to be repaid. Rather, the funder buys a portion of the the proceeds of the case, if any. Because of this, the creditworthiness of the applicant is a non-issue and the credit score not usually a factor in the underwriting process.