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Business lawsuits are neither easy nor fast. Litigation requires extra time and sustained effort to move through the legal process and ensure a fair settlement on the plaintiff’s behalf. As more resources are pumped into the lawsuit, a business can begin to feel the financial pinch in daily operations. To maintain momentum and product quality, here are some possible supplementary resources to consider to help keep your production line moving with business as usual.
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Financial Reserves
Many company budgets include a line item for financial reserves, which may be an investment account, a savings account, or a basic portion of operating income set aside for contingencies or emergencies. Financial reserves should be easy to access in case you need it quickly. If this type of fund does not already exist, while a lawsuit is in progress it would be a good time to start one. Each month a designated portion of profits can be allocated to meet the shortfall caused by litigation expenses.
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Business Loan
A business in good financial standing with a healthy credit score may be eligible to apply for a loan to cover temporary operating expenses until the lawsuit is settled or finalized. There are even fast lawsuit loans available to companies in good standing for the specific purpose of helping a company involved in a lawsuit to keep up with expenses instead of running into monetary shortfalls for expenses like production and payroll. A fast lawsuit loan is often available in terms that are favorable to the company in order to ensure payments are made on time without exorbitant interest rates. The repayment plan can be arranged to cover the expected litigation timeline. Businesses can also see about adding to an existing business loan from their current lenders or investors.
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Temporary Downsizing
Although no one wants to consider the possibility of layoffs or reduced production, sometimes it becomes necessary, at least short-term. A company should always have a backup plan for such a scenario that authorizes, when needed, the reduction of marginal processes or products that are expendable or minimally profitable. It is important to make these decisions with the help of upper-level management to determine who is non-essential and who needs to stick around. Similarly, services that have been outsourced may be temporarily handled in-house until the lawsuit is settled.
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Personal Donations
Some companies may be able to solicit temporary donations until the financials stabilize following the settlement of a lawsuit. Rather than appeal to the public, which could raise questions and doubts about the company’s well-being, the company leaders in strong financial positions may be willing to inject cash infusions to the budget, or take a significant pay cut, while the lawsuit is in process, being repaid with interest when the suit is settled.
A lawsuit process will not last forever. However, the process could last longer than you expect and could cost more than you are planning on. While it is moving through the court system, a company may need to consider financial support options like those above to cover operating expenses temporarily.
By Anica Oaks
who is a freelance writer and hails from San Francisco. When she’s not writing, she’s enjoying her time outside with her dogs. Anica recommends fast lawsuit loans to help you get through your lawsuits quicker.
Member since August, 2019
View all the articles of Anica Oaks.
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