How Long Does It Take To Get Pre-Settlement Funding?

After a car or other accident, you may be waiting a while for the case to settle. So what do you do while waiting for money when you cannot work?

Pre-settlement funding could be the answer. This is money you can receive from a special type of lender to cover your living expenses and medical bills while waiting for your settlement.

If you need money to cover your bills during this challenging time, consider the information below, then apply for pre-settlement funding with Capital Now Funding.

Why Pre-Settlement Funding?

It can seemingly take forever to get settlement compensation. You need to pay your mortgage or rent, as well as medical bills. But when you get pre-settlement funding, the stress melts away, and you can cover your expenses. The loan offers funds to:

  • Pay for your essential living expenses and economic damages from the accident
  • Negotiate a larger settlement because you aren’t ‘under the gun’ and willing to settle for any amount anymore
  • Eliminate the stressful period between the accident and financial recovery

Plus, once the lender gives you the loan, you’re under no further obligation if the case doesn’t settle. If you don’t get compensation, you don’t need to pay back the lender.

How Long To Get Funding?

If you have applied for a mortgage, you may think that getting a pre-settlement loan will be daunting with a lot of paperwork and credit checks.

That’s not how these loans work. The applicant doesn’t have to prove themselves financially; all you have to do is present the loan company with the facts of the case.

They need to see how likely it is that you’ll win compensation in a settlement or jury award. If the case has potential, you may qualify for a loan quickly.

Depending on your case, it’s possible to get funding in as little as a few days. However, the exact timeline depends on:

  • The amount of information about the case you provide
  • How quickly your car accident attorney contacts the lender
  • Whether or not the lender needs more information to make a decision

Remember to provide the lender with as much information as possible to speed up loan approval.

They’ll need to understand these points about your accident to make a fast decision:

  • Liability: Who was responsible for the accident? Hopefully, the other driver was entirely at fault. If so, you need to provide evidence of liability, such as a police report citing the other driver.
  • Injuries: What are your injuries and damages? Prove your damages by providing a doctor’s statement, medical bills, car repair estimates, etc.
  • Insurance: Do you and the other driver have auto insurance? Insurance coverage and the amount of coverage is often critical to settling.

The lender can often make a lending decision in days by providing this essential information about the case.

What Can Delay The Pre-Settlement Funding Decision

Getting the money quickly is often critical, so your bills and other expenses are handled. However, there are common mistakes that some accident victims make that delay the process:

  • Applying for pre-settlement funding without talking to your attorney. However, your car accident lawyer is an essential player in this process, so speak to them if you think you need a car accident loan to make ends meet.
  • Applying for the loan without having the necessary documentation ready. The lender must see plenty of documentation about the case to make a decision. Just tell your attorney that you want to apply for a loan and they’ll get the necessary documentation.
  • Not filling out the application completely. If you have questions about anything on the loan application, ask the lender, or get your attorney involved.

Additional Pre-Settlement Funding Tips

The information below will help you during the application process:

How Much Money Do You Need?

It’s critical to understand how much money you need while your case is pending. Financing a lawsuit settlement is expensive, so you don’t want to finance more than necessary.

It’s always best to borrow as little as possible, but enough to meet your needs.

So, add up all your expenses, medical bills, and other costs that you need to cover in the time you think it will take to reach a settlement. You can usually ask your attorney for help in estimating your expenses and timeframe.

Evaluate Your Case Ahead Of Time

Many factors influence how much money you can qualify for, but it’s often helpful to review the case with your lawyer before applying.

One of the critical factors to understand is how much you might receive in non-economic damages, also called pain and suffering. This is often the largest part of the settlement and the hardest to evaluate.

Pain and suffering compensation is subjective and many factors influence what the amount will be.

How Much You Can Get

Many pre-settlement funding lenders will give you up to 10% of the estimated settlement amount, plus interest. If the case is in the early stages, the amount you are approved for could be less than you want.

But remember that how much you are approved for doesn’t indicate how much your final settlement will be. It simply means the lender estimates your case at that time to be a certain amount. The number can always change as the case changes.

Note that many lenders can approve you for additional funds later, if needed. In many situations, the person can take out as many loans as the case warrants.

For instance, you may have additional medical treatments and surgeries that drive up the potential value of the case. Or, perhaps your attorney finds out that the liable driver has a lot of insurance and assets.

Pre-settlement funding can often be a life-saver for injured people who need money fast to make ends meet.

You can often get a pre-settlement loan in only a few days and sometimes even faster. So, contact Capital Now Funding today to learn if you qualify for pre-settlement funding.