What is a Lawsuit Loan?
What most refer to as a “lawsuit loan” is not really a loan at all. A lawsuit loan is really a cash advance made against the settlement funds that will be available when a lawsuit is settled. A more accurate term would be pre-settlement funding or pre-settlement lawsuit funding because the funds will come out of the settlement before the settlement, or “pre-settlement.”
Why Do You Need a Lawsuit Loan?
When it comes to a car accident injury lawsuit, the plaintiff has been injured in a car accident and has an attorney file a lawsuit for compensation. In the unexpected situation, the plaintiff is not only injured, but is often out of work and has medical bills piling up – rent, utilities, car payments, gas, food, and so much more. Clearly, funding can help until the lawsuit settlement takes place and the plaintiff can receive their compensation. The amount of cash the plaintiff receives in advance as a legal loan against the settlement will be paid back from the settlement amount.
The great part? Our pre-settlement funding involves no risk to the plaintiff. If the case is not won in the plaintiff’s favor, then the lawsuit loan does not have to be paid back, because it is “non-recourse” funding. Non-recourse funding is simply a legal term that means you owe nothing back on your pre-settlement funding if your case is not successful. It is not a loan that has to be paid back.
This is why at Capital Now Funding, we don’t call our funding car accident loans or lawsuit loans – we refer to them correctly as “pre-settlement legal funding.”
Are you interested in getting more information about a lawsuit loan? Capital Now Funding has all the answers you’re looking for. Apply with us today to see if you qualify for a lawsuit loan!