A lawsuit or litigation can be expensive. Besides legal fees, you may need to pay for medical treatments from injuries you suffered in an accident. As you await compensation, a lawsuit loan can help you make ends meet when it’s difficult or impossible to earn a living. Below are five benefits of lawsuit loans and some frequently asked questions.
Advantages of Lawsuit Loans
Many people who face a lawsuit contact a pre-settlement funding company for a lawsuit loan. Here’s why.
1. Reduced Financial Strain
A significant burden usually accompanies a lawsuit or litigation. If you’re injured and can’t work, it can be difficult to meet your expenses, especially when medical care and attorney fees are added in.
Pre-settlement funding helps lessen the financial burden. This loan helps provide the money you need while waiting for the lawsuit to pay off.
2. Lower Risk
Compared to a loan from a bank or any other lending institution, a lawsuit loan presents the least risk.
You don’t pay any monthly installments. You also don’t pay anything if you lose your case.
Pre-settlement funding companies conduct extensive research before they can advance you any cash. They approve lawsuits that are most likely to win. If you do lose, they assume the losses.
3. Less Requirements
There are fewer requirements for pre-settlement funding than other funding solutions available in the market.
Besides no monthly installments or interest, you don’t need a credit history or collateral. It’s not even required that you’re employed. Unlike other forms of funding, pre-settlement funding companies base their approval on the merit of a case.
Read Also: Personal Income Tax Form Explained
It’s easy for someone under financial strain to agree to a lawsuit or litigation settlement much lower than they deserve. But without requirements blocking you from accessing a lawsuit loan, you have the financial backing you need to challenge your case and fight for a higher settlement.
4. A Bigger Pay-off
Lawsuits and litigations can take a long time. Often the longer the plaintiff can wait, the higher the settlement they can get.
But for someone under financial stress, it’s hard to be patient. Many get tempted or are forced to push for settlement too early.
A lawsuit loan can help eliminate the financial pressure. You don’t have to worry about how you’ll pay your bills, legal fees, or medical expenses. When the plaintiff can afford to wait longer, it increases their chance of a higher settlement.
5. Peace of Mind
If you’ve ever faced a lawsuit, you know the time, effort, and energy that goes into it. Lawsuit funds afford people much-needed peace of mind.
When you do not have to worry about how to make ends meet or cover the cost of the lawsuit, there is peace of mind. This helps alleviate some of the stress that naturally accompanies a lawsuit.
Since there are so few barriers to getting one of these loans, it further decreases stress. Not having to repay the loan if you lose makes everything better too. The entire process puts your mind at ease.
Frequently Asked Questions
Below are some common questions regarding lawsuit funds.
How Does It Work?
Start by filling out an application form. Once it is submitted, the pre-settlement funding company will inform you of its requirements. They will review your case by contacting your lawyer to learn your case’s status, how likely you are to win, and how much longer it might last.
Once they approve the loan, they’ll offer you an amount.
How Do You Choose a Pre Settlement Funding Company?
Choose a company with an easy and convenient application process. The funding process should also be fast and straightforward. Find a company that has a reliable and trustworthy reputation with lots of experience.
Can You Get a Same-day Lawsuit Loan?
Yes. Many companies have a very simple application process online or over the phone. These companies have also significantly streamlined the review and approval process. Some companies can review and approve within 24 hours.
Can you Apply for Multiple Lawsuit Loans?
Yes, you can. There’s no limit on how many loans a person can apply for. However, pre-settlement funding companies stipulate that you must apply for additional loans from the same company. You cannot use different providers.
If you find yourself in the middle of a lawsuit or litigation, lawsuit loans can help. They help reduce the financial burden by providing money to meet your expenses, including healthcare and legal fees. A loan can help get a higher settlement and give you peace of mind.