In simple terms, pre-settlement loans are cash advances that are offered to the plaintiff of ongoing cases. This type of funding is provided to help the plaintiff to keep their litigation ongoing. The best part of pre-settlement funding is its non-recourse nature, which we will read in detail further. Litigation financing is nothing like bank loans, they are more of a cash advance offered against your lawsuit.
Many say lawsuit financing is relatively new, but serious players in the segment of financing are helping individuals a lot back. These kinds of funding have different names like lawsuit loans, settlement loans, pre-settlement financing, or legal funding. It can be used by plaintiffs and only plaintiffs to fund a wide range of cases such as personal injury lawsuits, auto accident cases, wrongful death, medical malpractices, product liability, and many more litigations.
Pre-settlement funding is more of financial assistance than terming it a loan is absolutely for the purpose to make individuals aware of its existence. To know more about it visit the pre-settlement funding page and get all the needed information.
Many plaintiffs who are not able to get the cash for fighting a legal battle, end up settling for a lot lesser than the actual compensation value. These pre-settlement cash advances just make sure that the plaintiff receives the right amount of money to keep the fight ongoing so that they can end up getting the estimated value as per your legal claims.
Loan repayment is also very different from bank loans. Here the plaintiff only needs to repay the loan if the judgment comes in favor of the plaintiff. In the worst case, if the plaintiff loses the case, then there is no obligation to repay the amount taken in form of a lawsuit loan. Now you may be intrigued by knowing about pre-settlement loans, therefore let’s learn
How To Get Pre-settlement lawsuit loan?
Before filing for pre-settlement loans, make sure that it is the right option for you.
Some important things you must consider before getting financial assistance, discuss this with your lawyer, and understanding the duration it will take to reach a verdict on your case.
Litigation mostly takes a lot of time to settle.
In the meantime, you have to decide whether you can manage without the loan or if you need the financial support to keep your chores going. Personal injury not only takes a toll on your saving but also impacts your daily wage.
Consider all the factors then only apply for legal funding. Few key things you need to know to get pre-settlement cash advances are
You need to hire an attorney
To qualify for legal funding, an attorney must be working on your case and represents you in court.
Therefore, the first thing you must do is to hire an attorney who will file a personal injury lawsuit in court on behalf of you.
One more thing you must follow is to hire a qualified lawyer who works on a contingency fee basis.
It means that the lawyer represents the client seeking money for the damages they face, and collects the percentage of the settlement at the conclusion of the lawsuit in form of fees.
Apply for a loan from a trusted funding firm
After you get your legal representative who will be presenting on behalf of you in court.
Find a reputable lawsuit financing company. Applying for lawsuit funding is the easiest part, all you need is to visit our contact page, and fill up important information like Name, Contact details, Case type, and other relevant information.
This information must be correct since an executive will contact you after you submit the application.
They will inform you about the interest rate and the time to pay the loan.
Wait for the review of an application
After you connect with the lending firm and submit all the needed information like case information, attorney contact, then the lawsuit funding company will contact your attorney to understand the case.
Further, the strength of the case will determine the amount you will receive in form of a loan.
The amount is finalized after a thorough analysis of the case.
Once the company does all this they will present the actual loan amount which they can offer.
This process will not take much time, and it completely depends on how the attorney works with the firm and the related documents they submit.
Accept the payment and know the terms
It’s really important that while accepting the pre-settlement funding, you should know about the terms and conditions.
Every lending firm has its own policy, learn about them.
See if they are suitable for you then only accept the payment. Involved your attorney in this, ask them to look after the terms and conditions proposed by the lending firm for offering you the loan.
Make sure that you are getting the right loan amount which can help in your case as well as paying some dues.
Mostly an individual can get up to 15% of compensation value in advance in the form of lawsuit loans.
Pre-settlement funding process
It’s a three-step process,
Step 1: You apply for pre-settlement funding
Find a company that fits your needs, has a good reputation, and can offer pre-settlement funding in your state. You can either apply with them online or call the official number. If you select America Lawsuit Loans, you can call us at (888) 335-3537 or fill out our lawsuit application form.
Step 2: We review your application
The company will review your application after discussing case details with your attorney. They will confirm the case’s eligibility based on the merits of the lawsuit and the rewards expected from it. Your attorney will play a key role during the review process, as they will need to submit case-related documents.
Step 3: You get the money
After reviewing your case, if you as an applicant get approved for pre-settlement funding, all you need to do is go through some paperwork, sign a contract with the company (read it before agreeing to anything), and you will receive the money in a few days.
Benefits Of Pre-settlement Funding
Fastest Method To Get Funds
It’s really simple and easy to apply for pre-settlement funding; all you need is an eligible personal injury case.
Since very little paperwork is required and no credit verification is done, approval totally depends on case strength, which reduces the approval time.
The biggest advantage of pre-settlement funding is its risk-free nature. You pay only if you win the case; if you lose, you owe nothing.
Most of the time, interest rates vary from company to company; it depends on the risk factor. If your case has a higher winning probability, you will get low-interest pre-settlement funding.
Cases Eligible for Pre-Settlement Funding
We at America Lawsuit Loans can provide pre-settlement funding on multiple types of cases that are allowed for funding in your state. Check the list below of cases eligible for a cash advance:
- Personal Injury
- Car Accident
- Slip & Fall
- Construction accident
- Premises Liability
- Product Liability
- Police Brutality
- Mass Tort
- Medical Malpractice
- Wrongful Death
- Wrongful Termination
- Racial Discrimination
Factors That Determine The Interest Rate Of Pre-settlement Funding
As we know, it’s a risk-free loan for the plaintiff, but companies need to go through the process thoroughly while providing any cash advances as they bear the complete risk. Hence, the interest rate varies from company to company and from case to case. A few factors that play a crucial role in determining interest rates are:
Severity of the personal injury
If the injuries are more severe, the interest rate will be low in comparison to simple injuries.
Cost of surgeries involved
In case you have to go through costly surgeries because of a personal injury accident, the interest rate will be lower.
Winning percentage of the lawsuit
The higher the winning percentage of the case, the lower will be the interest rate on pre-settlement lawsuit funding.
Expected amount of settlement
The higher the expected amount, the lower the interest rate will be.
Expected time of settlement
If your settlement process is going to take a long time, the interest rate will be higher.
Receive Cash Advance From America Lawsuit Loans
If you are waiting for an ongoing settlement and worried about the current bill payment, we can help. We provide pre-settlement funding that is easy to get at lower interest rates. With our quick and simple application process, you can receive funds in a matter of days if you have a winnable case.