6 Things You Need To Know About Pre-Settlement Funding
If you're going through a long, complicated legal process, you might need access to funds to cover the costs of medical bills and legal fees. While it would be ideal to get your settlement quickly and be able to pay these fees off, this isn't always the case. It can take months or even years to see settlement funding, and in the meantime, you have bills to pay and other expenses to cover.
While the process can seem hopeless, there is help at hand through pre-settlement funding. But, maybe you've never heard of this term before or have questions about this funding and how to access it.
Simply put, pre-settlement funding allows you to access money for these expenses through a loan. Find out what you need to know about pre-settlement funding, including how it works and where to access these loans, by reading this guide.
The Basics Of Pre-Settlement Funding
Also called litigation funding or lawsuit loans, these loans are available to victims and plaintiffs who need access to money as they go through trial and the litigation process. Even going to trial can take months or longer, so many victims aren't able to wait that long. The pre-settlement funding option allows plaintiffs to get part of their expected settlement in advance.
As with many loans, pre-settlement loans involve promising to pay a part of the settlement to the funding company that handles the loan when your case settles.
Who Qualifies For Pre-Settlement Funding
The good news is that pretty much any plaintiff could potentially qualify for a litigation loan. But, as it is a loan, you will need to get approved and go through the process to get this approval. Funding companies are the entities that determine who will qualify for these loans and who will not.
How Do You Qualify For Pre-Settlement Funding?
You may have questions about the requirements for approval. It can sound a bit intimidating, and you may worry that your current financial situation will have a big impact on eligibility. But, unlike with home or vehicle loans, the vetting process is a bit different for these loans. They are based on the strength of your case as a plaintiff.
Basically, the pre-settlement funding company isn't likely to give an advance unless they feel reasonably certain they will get their money back. If the individual's case is weak, the chances of the loan being paid back in full are slim because the desired settlement payout is unlikely to happen.
So, the stronger your case is, the more likely you are to qualify for pre-settlement funding to cover various fees related to your lawsuit.
Specific Factors That Make You A Good Candidate For A Litigation Loan
While the overall basics of qualifying for a pre-settlement loan are having a strong case, this might seem vague. Luckily, there are a few specific factors that can make you more likely to get one of these loans.
Companies will look at whether you have an attorney and who your attorney is. Picking an experienced attorney with a good track record in cases similar to yours will help you get a pre-settlement loan. The other factors to consider when taking your request to a pre-settlement company include:
- The kind of case you have: Some kinds of cases are more likely to qualify. For example, many personal injury cases are partially funded ahead of time through these loans as there's a good chance the victim will get a cash payout.
- The status of the litigation: Underwriters and lawsuit lenders will look at your case and how the process is going. However, even if you're still early in the litigation process, you could still get a loan. This is just a step for the lender to determine how long your case will be open.
- The plaintiff's commitment to getting a settlement: Lastly, pre-settlement lenders want to know the victim is determined to see the claim to the end. Otherwise, it wouldn't make much sense for them to give their money to someone unlikely to ever get their settlement.
While this list is just an overview of the factors the underwriters will consider, it does give you an idea of how to strengthen your case so you can get approved for a pre-settlement loan.
Why Pre-Settlement Funding Could Be Right For You
Even if a plaintiff is a great candidate for funding, it doesn't necessarily mean they need a lawsuit loan. If you're a victim in the middle of a lawsuit, you need to consider whether or not pre-settlement funding is right for you or not.
Some of the main reasons to get a pre-settlement loan include loss of income because you can't work because of the accident or if you have urgent needs to cover, such as medical bills or rent.
The specific needs for each victim will vary, but overall, you might want to get a lawsuit loan if you have immediate financial concerns due to your lawsuit. If you don't have any other option, a pre-settlement loan is a good bet.
Capital Now Funding Can Help You With Pre-Settlement Funding
Finally, you need to figure out which pre-settlement funding company to get your loan from. If you've decided you need an advance to pay off your medical bills or other urgent needs after a personal injury lawsuit, you want to go with a lender that you can trust.
At Capital Now Funding, we care about our clients, and we don't just see them as a way to get a good investment. Instead, we are focused on compassion as we know how stressful the litigation process can be and how long it can take.
Unlike most other lenders, we don't charge recurring interest on our loans but only charge a fixed fee. Discover more and apply for a pre-settlement loan today. Reach out at your convenience.