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

Generally, people take pre-settlement funding when they have no money left to continue with court proceedings. Mostly, the very first preference to get funds is from banks and credit lending institutes, but they never allow cash advances to people who don’t have a good credit rating.

It’s understandable that a person who suffered personal injuries and is waiting for a settlement will face a lot of financial difficulties in the meantime. Many of them even have to survive on the savings they have planned for retirement. But now, with a pre-settlement loan, you get the risk-free option of getting money against your pending lawsuit and using it for litigation expenses.

Further, it is also possible to raise money from a bank if your credit rating is good and you have enough collateral to show. But for those whose credit history is mismanaged and who do not have enough collateral to get bank approval, a pre-settlement loan is the solution.

Let’s now look at why people prefer pre-settlement funding over a bank loan for their litigation expenses.

No Credit Rating Required

The biggest reason for any loan application to get rejected by a bank is the person’s credit history. But when you apply for a cash advance at a pre-settlement funding company, we will not ask for your credit score. Your past credit score will have no impact on the approval, but the strength of your case plays a key role in getting a pre-settlement loan. Further, bank will look at your employment status while offering you a loan, whereas lawsuit funding will only analyze your lawsuit to give approval

Less Paperwork Required

Since pre-settlement loan companies don’t ask for collateral and even the application process is simple, you will have a hassle-free experience. On the other end, when you apply for a loan from the bank, they will do a thorough analysis of everything; they will need proof of collateral, bank statements, credit scores, and many other papers. At pre-settlement funding, all you need to submit is the details of your lawsuit, and the executives will connect with your attorney for more information, so you don’t have to worry about paperwork.

No Obligation on How You Use Funds

Whenever you apply for a cash advance from a bank, they will lend you money with a purpose, whether it is buying a house, getting a car, or covering some restricted personal expenses. But pre-settlement funding comes with no restrictions on its usage. You are free to use it for whatever you want; you can use it to pay for medical bills, surgeries, rent, child care, and any other personal expenses that are needed at the time.

The Quickest Method to Get Funds

Applying for a bank loan and getting the funds after approval can take months, whereas taking a pre-settlement lawsuit loan takes only a week at most. Banks take a long time to approve because of all the verification and paperwork, whereas litigation funding companies only need to analyze the strength of the case and give you a lump sum based on merits, which you can receive in a couple of days.

Only Risk-Free Way To Get Cash Advance

This is one of the biggest reasons why people prefer pre-settlement funding over bank loans to pay for personal injury litigation expenses. Since the pre-settlement funding company offers you a cash advance on the merits of the lawsuit and the lawsuit funding service has a non-recourse term attached to it, it makes them risk-free. People only need to repay the cash advance when they win the case and receive a settlement; if they lose, they have to repay nothing. As a result, people who have a pending lawsuit prefer a pre-settlement loan.

Conclusion: Pre-settlement Funding Is a Better Choice

Many people wonder why there is a need to get pre-settlement funding when there are banks out there that offer loans and cash advances. But now, with the above key point, they must have gotten the answer.

Unlike banks, a lawsuit loan company does not take too much time to assess whether to grant or not grant the plaintiff a certain sum of cash. Banks do not also accept uncertain lawsuit success as collateral. Therefore, those who do not have properties and who have bad credit histories can never get anything from the bank.

Lawsuit loan companies can accept individuals who even have the worst credit histories. They can also handle the application of someone who has nothing to offer but a share of their future settlement. Looking through these things, there is no doubt that there is an advantage to getting pre-settlement funding rather than getting a loan from a bank when you need money for court proceedings.

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

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