KG Funding

Services for Attorneys & Accountants and Clients

KG Funding

Commercial Mortgages

Cash to Grow Your Business

    Factoring to Grow Your Business

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Attorneys & Accountants

Health Care

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Sell Mortgages & Notes

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The Press & KG Funding

Contact KG Funding

  1. Lawsuit financing
  2. Selling future structured settlement payments
  3. Arranging new commercial mortgages for yourself or a client
  4. Helping my clients grow their businesses.
  5. What funding do you have for health care clients?
  6. Seller-financed real estate notes
  7. Seller-financed business notes  

Lawsuit financing

Sometimes additional resources are needed to maximize the amount that can be obtained in a lawsuit.

        As an example, a plaintiff has had injuries and lost work time.  Bills have piled up, and his mortgage is in default.  The insurance company knows that and offers $100,000.  The plaintiff’s attorney tells him that's ridiculous and recommends refusing the offer because it's worth $200,000.  The plaintiff is desperate and takes the $100,000.  We can arrange for an advance to the plaintiff of a few thousand dollars to clear up the default and provide living expenses.  If necessary, we can arrange for additional advances each month until the insurance company makes a reasonable offer.

        An attorney may have an especially expensive case that is expected to produce a big payoff.  Class action and intellectual property cases are typical.  The attorney can receive funds for expenses, such as expert witnesses.

These advances require a very strong case because the advance is non-recourse.  If the plaintiff doesn’t collect, neither does the funder.  Due to the high risk, the advance is very expensive compared with bank rates.  The plaintiff and attorney should view the cost as an investment.  In the first bulleted paragraph, how much would it be worth paying to get the additional $100,000?  In an intellectual property case worth millions, how much is it worth paying to be able to carry on the suit?  It's an investment with no risk to the plaintiff and/or attorney.

In addition, an attorney who needs financing to improve a personal injury practice can get an advance. The attorney will have to have some caseload already, since the cases will secure the repayment of the advance.

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Selling future structured settlement payments

A former plaintiff may be receiving future payments as the result of a settlement in an earlier suit.  Payments can be monthly, annual, or even every few years.  No matter how carefully the settlement was planned, the annuitant (seller) may now have unforeseen circumstances which necessitate selling those payments.

Most states allow sales of structured settlement payments.  The most important feature is that a court order is obtained.  The order guarantees that the payments will be made to the investor (or buyer) who buys the payments.  It also meets the legal requirements to make the sale tax-neutral, i.e., the proceeds for payments which were not taxable are not taxable.  All legitimate buyers of payments know how to arrange the court orders and can either work with the seller’s attorney or hire their own to get it done.

Normally, the payment seller will have no out of pocket payments before the court order is complete and will be paid within days after the court order is received.  Most investor/buyers cover all the costs.  Whether the seller is dealing with a broker or directly with a buyer, the offer received will be a bottom line amount after all expenses have been deducted. Be a little suspicious of any buyer who requires any out of pocket, including the costs of the court order, and ask extra questions.

You can find hundreds of brokers and maybe 5-10 actual buyers on the internet.  How do you choose?  You can try to find an investor, but investors have expenses they normally leave to brokers.  The result is that they usually have a wholesale price for brokers and a retail price for you.  Sellers have called KG Funding after getting a quote from a buyer they saw on TV.  We always have gotten them a better price, often from the same source!  Experience is important.  KG Funding knows all the buyers and always gets the best price and service for the seller.

How experienced is Mike Schaul of KG Funding?  Unfortunately, our home state, North Carolina, has a law that makes selling payments more difficult than most states.  Mike fought the law when it was passed in 1999 and wrote the definitive article about it in the Campbell Law Observer.  In 2006, Mike is still the leader in working to bring NC’s law in line with the rest of the country, starting with another article (2005) in the Campbell Law Observer that alerted NC attorneys of the status.  To judge his expertise, read Mike’s articlesKG Funding continues to arrange structured settlement purchases in NC and other states.

Information needed to make you an offer:  We need the exact dates and amounts of the payments, the name of the company making the payments and whether the payments are guaranteed if the annuitant dies.  Tell us whether the annuitant has another source of income.  Because sometimes it is advantageous to you or required by the purchaser, we might only buy part of the payment stream. Let us know if a specific amount is needed for a specific purpose. If the person receiving the payments is a minor, most purchasers will be reluctant to get involved.

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