Loans help individuals who do not have the required cash in hand. You can plan your finances better before opting for some loans, like a home loan. On the other hand, there will be certain situations where you would not have the means to tackle expenses during unforeseeable situations, like filing a lawsuit seeking compensation for a traffic accident or personal injury. Can you imagine being cash-strapped in the middle of litigation? Lawsuit loans can help in such situations.
If you need funds before you receive your settlement, for example from a motor vehicle lawsuit or a personal injury lawsuit, a cash advance can help you with the expenses till you get a fair settlement. Such cash advances offered to the plaintiff are called lawsuit loans. They are also called lawsuit cash advances, settlement funding, etc.
The process of getting a lawsuit loan starts with making an application to the lender. You can connect with an experienced company that provides pre-settlement lawsuit funding. The company’s representatives will assess your case. Based on the evaluation, the company will approve and offer the plaintiff a cash advance. Lawsuit loans are repaid after winning the settlement, and the plaintiff repays the principal borrowed and a funding fee. The loan amount received can help the plaintiff cover their monthly bills, medical expenses, or other payments.
Top 5 Benefits of Lawsuit Loans
Here are the top 5 benefits of lawsuit loans that can help you make an informed decision before applying for one.
No Upfront Fees
The main advantage of lawsuit loans is that no fee has to be paid up front. As a plaintiff, you do not have to bear any out-of-pocket costs until you collect your settlement. Besides that, lenders of pre-settlement cash advances do not take the borrowers’ credit score into account. They also do not perform credit checks or income verification. Lawsuit loans are given based on evaluating the situation and facts of the individual case.
Help You Pay Your Medical Bills
If you have prior experience with filing lawsuits, you will know that your case will take a lot of time to make it to trial. It will take time to receive a settlement, but your bills cannot wait. Depending on your circumstances, you might have undergone surgery or you may not be able to work. Needless to say, it will be a difficult time for you. One of the benefits of lawsuit loans is that they provide you with cash to pay for your medical bills. Individuals who met with an accident or personal injury require medical care and have to pay for diagnosis, surgery, and rehabilitation. When the person who is claiming for a settlement does not have adequate medical coverage, they can opt for lawsuit loans to meet the medical treatment. It provides them with a way to get qualified medical treatment.
When you face a financial strain because your case takes a lot of time to make it to trial or for settlement, you can apply for a loan against your lawsuit. Unlike traditional loans, these are non-recourse advances. It means that they do not require a guarantee or collateral but are offered based on how strong your lawsuit is. Another advantage is that you have to pay back the loan amount only if you win your case and collect the settlement.
Get a Better Settlement Offer
Lawsuits are filed to get reasonable and fair monetary compensation for the loss that a person has suffered. However, it takes time to receive a settlement. Sometimes, plaintiffs who are facing financial strain settle for a lower amount than the value of their claim. When you apply for pre-settlement funding, you can be financially empowered. You do not have to settle early or for a lower settlement amount. Lawsuit loans can give you the time and money so that you can receive a better settlement offer.
No Monthly Payments
If you take a traditional loan, you should repay a certain amount each month. On the other hand, you can repay lawsuit loans only after you receive the settlement. This advantage of lawsuit loans makes them a better alternative to conventional loans.
Lawsuit loans can be of timely help for cash-strapped plaintiffs. Several types of claims are eligible for pre-settlement advances. However, before applying for a lawsuit loan, speak with a lawyer to understand the advantages and disadvantages of the loans. Understand the terms and conditions of the settlement funding companies and choose a reputed lender. They will have skilled representatives who can guide you through the entire process and let you know if you are eligible for a lawsuit loan. They will make it hassle-free for you, and you can get the loan you need very quickly. Keep in mind to check the funding fee and the terms of repayment.