If you are awaiting a legal settlement but cannot afford to wait for the money you need, consider pre-settlement funding. It offers plaintiffs access to cash quickly without a loan or credit check.
The best lawsuit advance companies offer transparent quotes with either simple or compounding interest rates. This allows borrowers to decide on their financial situation and goals.
What is Pre-Settlement Funding?
If you’ve been involved in a personal injury case, like an auto accident or workers comp, you might need money for expenses while your lawsuit is pending. The process of getting a settlement can take months or even years. For many victims, that’s a long time to be without income. Pre-settlement funding, also known as litigation funding or lawsuit loans, gives plaintiffs a cash advance based on the expected amount of their future settlement. They don’t have to repay the advance if they don’t win their case.
A good pre-settlement funding company will evaluate the strength of your case and the likelihood that you’ll receive a settlement before determining whether to offer you an advance. A reputable company won’t base its decision on your credit, and it should provide you with a quote that clearly outlines the advanced terms.
It’s important to discuss any advances you may receive with your attorney. If you agree to an advance, your lawyer will ensure that the funds are used for fees related to your case and any costs associated with the litigation process. They can also review any contracts to ensure you understand your agreement’s full details. This will help you prevent any unpleasant surprises or expenses. Access to financial resources can also enable you and your attorney to evaluate settlement offers better and determine if they are fair.
How Does Pre-Settlement Funding Work?
Lawsuits can be lengthy, and financial pressures often arise during the process. Fortunately, many plaintiffs can benefit frompre-settlement fundingto help cover expenses until they receive the money from their settlement. This cash advance can be obtained by applying to a pre-settlement funding company with documentation of their case. If approved, the company will provide the borrower with the required funds as quickly as possible.
This type of “loan” works differently than traditional loans in several vital ways. For one, the legal funding company takes on all the risk by only lending you money based on an estimate of your pending lawsuit’s value. That’s why it’s essential to work with a company that understands the specifics of your case and can advise you on whether this is an appropriate option for your situation.
Another way pre-settlement funding differs from a personal loan is in terms of repayment. Depending on the contract, you may be liable for a certain percentage of your settlement if you lose your case. This type of debt, known as recourse debt, can leave borrowers in a bad financial position.
Finally, it’s essential to consider the total costs of pre-settlement funding compared with alternatives such as a personal loan or credit card cash advance. The best way to do this is by comparing the terms offered by different companies. Ideally, you want to choose the company with the lowest fees for the money it lends you.
What Are the Benefits of Pre-Settlement Funding?
Pre-settlement funding is a legal solution to help you stay financially afloat while your case settles. Lawsuits can be long and drawn out, leaving you with mounting bills like rent and utilities, car payments, medical expenses, and more. Maintaining these payments can be difficult, especially if your injury stops you from working.
Using pre-settlement funding, you can seek a cash advance on the amount you expect to get in your settlement. The lawsuit funding company will review your case with your attorney and determine an offer based on the estimated value of your claim and your likelihood of winning your lawsuit. You can receive the money within days of approval.
The benefits of pre-settlement funding can be substantial. It can give you more leverage in negotiations with your insurance company or the defendant in your lawsuit and help you avoid financial hardship. It also can reduce risk because you don’t have to repay the loan if you lose your case.
Medical malpractice claims are often complex and take a long time to settle.
How Can I Get Pre-Settlement Funding?
Lawsuits are expensive and time-consuming. Often, injured plaintiffs must rely on credit cards or other forms of debt to pay bills as they wait months or even years to receive their legal settlement. A pre-settlement funding company can provide an advance against their pending lawsuit to help them pay their bills and avoid going into debt.
A reputable pre-settlement funding company will discuss your case with your attorney and determine a cash advance amount based on the estimated value of your claim and the likelihood that you will win the lawsuit. Most companies will also set a maximum dollar amount they will offer. Once you agree to the terms, the pre-settlement funding company will purchase a portion of your expected settlement and then pay you once the lawsuit is settled.
If you need money to pay your bills and avoid going into debt while waiting for a fair settlement in your case, apply online or over the phone with one of the hundreds of litigation advance companies across America. Unliketraditional loans, there are no minimum credit requirements. You can get an advance in as little as 24 hours if approved.
Many personal injury cases involve medical expenses, loss of wages, and other financial costs. Suppose you are a plaintiff in an accident or injury lawsuit seeking monetary compensation for damages. In that case, you may qualify for a lawsuit loan from a non-recourse plaintiff funding company.
