Pre-settlement Funding Are Better Than Bank Loan For Litigation Expenses

Life can throw some major curveballs at us. You’re just going about your day when bam – an accident happens that leaves you injured. Now you’re facing medical bills, lost wages, and more, all while waiting for the legal process to play out. It’s enough to make anyone stressed. Your savings dry up, retirement funds get drained, and you’re wondering how you’ll keep going. Getting a normal bank loan seems impossible – your credit’s shot and you have no collateral.

But there’s another option that more folks are turning to – pre-settlement funding. Basically, a company gives you cash upfront in exchange for a slice of your eventual settlement. And there’s no credit check or collateral required. Banks don’t care about your situation. To them, you’re just a risk rating. However pre-settlement companies focus on the merits of your specific case. If it’s strong, they’ll approve you quickly.

And you don’t have to jump through crazy hoops with stacks of paperwork. The company just needs some case details, connects with your attorney, and that’s that. The cash can hit your account in days, not months. No restrictions either. Use it for medical bills, rent, car payments – whatever you need to get by. And if you lose your case, you owe nothing back. Zero risk for you.

So if an accident has you strapped for cash, pre-settlement funding gives you a lifeline. Keep your head above water until that settlement comes through. Banks don’t get people’s situations, but these companies do. They can be a huge help during the toughest times.

Advantages of Pre-Settlement Funding Over Bank Loans

When you’re injured and awaiting a legal settlement, getting financing can be difficult. Traditional bank loans usually aren’t ideal. Pre-settlement funding provides a better alternative when you need cash quickly. Let’s explore the advantages in more detail.

What is Pre-Settlement Funding?

Pre-settlement funding provides cash advances to plaintiffs with pending lawsuits. Companies provide upfront money based on the potential value of your expected settlement or award. You then repay the advance plus fees after resolving your case.

Pre-settlement financing is also known as:

  • Lawsuit loans
  • Settlement loans
  • Litigation funding
  • Lawsuit cash advances

Key Benefits Over Bank Loans

Pre-settlement funding has several key advantages over traditional bank lending options:

No Credit Check Required

Banks deny applications from people with poor credit histories. They view you only as a credit score, not an individual.

Pre-settlement companies don’t care about your credit. They look at the merits and details of your specific case when deciding on approval. Your past credit mistakes don’t matter.

Minimal Paperwork

To get a bank loan, you’ll likely need to provide extensive paperwork – tax returns, bank statements, appraisals, pay stubs, and more. Gathering all these documents takes substantial time and effort.

Pre-settlement funding involves much less red tape. No need to collect piles of financial records. The company just needs some basic case information and contacts your attorney to verify details.

Quick Access to Cash

The bank loan approval process drags out for weeks or months. You’ll wait a long time before ever seeing funds.

Pre-settlement cash can arrive in your bank account in as little as 24-48 hours in some cases. The application and review is streamlined so you get money when you need it most.

Flexible Use of Funds

Bank loans restrict how you can use the money. The funds are earmarked for specific purposes like medical bills, car repairs, or housing costs.

Pre-settlement financing comes with no strings attached. Use the cash however you want – medical expenses, daily living costs, education, debt repayment, or anything else.

Zero Risk

With a bank loan, you must repay the money no matter what. The debt obligation remains even if you lose your court case.

Pre-settlement advances involve no risk or recourse for plaintiffs. If you lose your lawsuit, you owe nothing back to the funding company.

Why People Get Pre-Settlement Funding

Now that we’ve covered the benefits, let’s discuss common reasons injured plaintiffs get pre-settlement financing:

Cover Living Expenses

If you can’t work due to an injury, you may struggle to afford basic necessities like rent, utilities, and groceries. The cash advances help pay the bills until you receive your insurance settlement or court award.

Pay Unexpected Costs

Injuries result in many surprise expenses – medical bills, rehabilitation and physical therapy, home health aides, medical equipment, and more. Pre-settlement money helps handle these sudden costs.

Avoid Bankruptcy

The financial stress of an injury can drive some people into bankruptcy. Getting pre-settlement financing prevents this worst-case scenario and provides much-needed breathing room.

Hire an Attorney

Quality legal help often makes the difference between winning and losing a case. Pre-settlement funding allows you to hire the best attorney possible and improve your chances.

Wait for Full Settlement Value

Insurance companies often make lowball settlement offers hoping injured plaintiffs will take the quick payout out of desperation. With pre-settlement cash in hand, you can hold out for full and fair compensation.

How the Pre-Settlement Funding Process Works

If you decide to pursue pre-settlement financing, here is an overview of how the process typically works:

Initial Contact

You inquiry with a pre-settlement funding company online, by phone, or through an attorney referral. The company collects basic information and case details.

Case Review

The pre-settlement company thoroughly reviews your claim merits, settlement amount probability, financial need, and other factors.

Verification and Recommendation

The company contacts your attorney directly to verify information and get input. They provide a funding recommendation for your case.

Funding Agreement

If approved, you finalize the agreement outlining repayment terms when your case settles. Sign documents and agree to all conditions.

Receive Funding

After finalizing the agreement, the company deposits the pre-settlement cash advance directly into your designated bank account.

Case Settlement

Once your case resolved, you repay the funded amount plus any fees out of your settlement or award.

Pre-settlement funding provides a valuable financial lifeline for plaintiffs with strong cases but immediate cash needs. If you explore this option, make sure to work only with reputable companies who treat you fairly and ethically.

Get A Pre-settlement Funding Quote

If you are already in a lawsuit, then we can offer you lawsuit funding without any hassle.

CALL: 800-961-8924