Lawsuit loans which are also known as lawsuit funding, settlement funding, lawsuit cash advances or litigation financing refer to money advances against a settlement award or future lawsuit judgement. In case you’re in the middle of a trial and need some cash, choosing a lawsuit funding option is one of the choices you can put into consideration particularly if you have used all the money sources you had.
Lawsuit funding is provided to plaintiffs who are expected to win or settle a judgement in a trial. As a plaintiff, after filing a personal injury case, you can consider applying for this form of loan with a reputable lawsuit funding firm. The firm you collaborate with will evaluate your case in order to figure out the amount of money you can expect to acquire if you negotiate or win a case.
After determining the sum of money you can expect to acquire, the lender i.e. the lawsuit funding firm then provides you an amount of money as loan. In exchange, you will be required to pay the firm that amount of cash plus a funding fee’ once the case is settled.
Pros of Lawsuit Loans
#1: Payment is Only Needed if you Win the Case
If you apply for lawsuit funding but unfortunately you lose your case, you’ll not be needed to pay back the cash owed.
#2: Credit History is not required to determine if you Qualify for the Loan
Unlike with regular loans whereby credit checkers are required to review your financial details in order to know your credit worthiness, this is not the case with settlement funding. With settlement funding lenders will not need to check your credit score or bank account in order to figure out if you are qualified for this kind of loan.
#3: Payments Made After Winning the Case
Typical loans will always need you to make upfront fees or monthly payments once you consider them. However, with settlement funding you will only be needed to make payments after you emerge a victor in your case.
#4: Fast and Easy Procedure
With settlement funding, as an applicant you can get the loan in less than 48 hours. This is possible since the application procedure is easy and the loan approval process is quick.
Cons of Lawsuit Loans
#1: Not All Trials Qualify for this Kind of Loan
Since lending firms take a substantial risk when giving these kinds of loans, they will only offer you the loan once they are certain you will settle or win your case.