If you’re in a position to win a settlement, you might qualify for a settlement loan – an immediate provision of cash that can help you cover your bills and remain financially solvent while you wait for your full settlement to arrive. But not all people or cases will qualify for a settlement loan – and not all people should take one.

So what kinds of cases are ideal for a settlement loan?

How a Settlement Loan Works

First, let’s explain the basics of a settlement loan. Settlement loans go by many different names, including pre-settlement funding, settlement advances, and legal funding. No matter what you call it, it always serves the same function (more or less).

At the end of a lawsuit or negotiation, you may be due a settlement – a sum of cash you can use to pay your medical bills, make up for lost income, and more. But it often takes weeks to months for this cash to hit your bank account. With a settlement loan, you can get access to that money immediately.

In some cases, settlement loans come with a high interest rate, which can trap plaintiffs in taking on more debt and worsening their already-stressful financial position. However, only Capital Now Funding offers settlement loans with Zero Interest and only a one-time Fixed Fee, so you don’t have to worry about compounding interest or escalating payoffs. Additionally, if you don’t receive a settlement, you won’t owe anything on the loan you took out.

Types of Cases That May Qualify

There are many types of cases that could hypothetically qualify for a settlement loan. However, some of the most common are personal injury cases. These cases tend to have a high likelihood of paying out a settlement, and the settlement itself can be substantial; settlements are often calculated to cover not only short-term and long-term medical expenses, but also any lost wages associated with the injury and the plaintiff’s subjective pain and suffering.

Personal injury cases include things like:

• Car Accidents. If you’re injured in a car accident that wasn’t your fault, you can sue the other driver (or whoever was responsible for the accident) and cover the damages.
• Slip and Fall. Slip and fall or premises liability accidents happen as a result of someone else's negligence. Whether you became injured on another person’s home property or at a business, you’re entitled to compensation.
• Workers' Compensation. Workers’ insurance will cover the costs of any injury you receive at work, but sometimes this isn’t enough to cover the full damages – or hold negligent parties responsible for their decisions and behavior.
• Jones Act. Traditional workers’ compensation insurance doesn’t cover employees who work on a ship, barge, or oil rig. However, the Jones Act is a federal statute that allows for maritime employees or seamen to recover compensation for personal injury damages.
• Medical Malpractice. Medical malpractice comes in many forms, including misdiagnoses, missed diagnoses, bad prescriptions, mistakes during surgery, and much more. If you’re hurt, if you don’t get the treatment you need, or if your condition gets worse because of your interactions with medical professionals, you’ll be considered a victim of medical malpractice.
• Wrongful Death. Dealing with the loss of a loved one is hard enough to face, but it’s worse when someone apparently caused or contributed to your loved one’s death.  If someone’s negligence caused your loved one’s death, you deserve to be compensated for your loss. If you’ve filed a wrongful death lawsuit or are in the process of filing a claim, you can get the compensation you deserve.
• Nursing Home Abuse. Have you or someone you love been a victim of nursing home abuse or nursing home neglect? If you’re pursuing a lawsuit against a nursing home or other care facility for suspected abuse or neglect of your loved one, you may be a candidate for a settlement loan.
• Dog bites. There are a lot of dog lovers in the United States, but even the most affectionate dog person knows that they can be dangerous if not properly trained and/or restrained. A dog bite due to a negligent owner could entitle you to compensation.
• Product Liability. Companies have a responsibility to ensure their products are safe – or at least warn us otherwise. If a product is poorly designed or shoddily manufactured and injures you, you could have a personal injury case on your hands.

Evidence and Chances of Victory

Remember, if you don’t receive a settlement, you’re not going to be responsible for paying back the settlement loan you take out. Accordingly, settlement loan providers want to do everything in their power to ensure they’re only funding cases that have a high likelihood of reaching a settlement.

During the application process, the settlement loan provider will likely do their due diligence to ensure this case is a good fit for the company. They may talk to your lawyer, review the details of your case, and even look at the evidence backing your claim. If your case didn’t have a good chance of victory, a lawyer probably wouldn’t have taken it on in the first place, so you’ll have a strong chance of qualifying for a settlement loan. However, if your case is weak or if there are strong indicators that you’re not going to receive a settlement eventually, the settlement loan provider may not be willing to provide you with funding.

Is a Settlement Loan Right for You?

Just because your case could hypothetically qualify for a settlement loan doesn’t mean you should seek one out necessarily. Before you follow through on getting settlement funding, consider:

• Financial position. What’s your personal financial position? Are you facing a rising stack of medical bills and other financial obligations putting a strain on you? The more immediate financial distress you’re in, the more you should feel pushed to seeking a settlement loan. On the flip side, if you have ample savings and your expenses are reasonable, you can probably afford to wait.
• Stress and uncertainty. How much subjective stress and uncertainty are you feeling? Filing a lawsuit can be complicated, unnerving, and unsettling – especially if you’re not sure of the outcome. Taking a settlement loan can help you relieve some of these feelings and give you something tangible to improve your position.
• Case and timeline. What does your lawyer think the chances of your victory are? And what kind of timeline are you looking at? If it’s going to be many weeks, or even months before you’ll get access to your settlement money, a settlement loan may be your best option.
• Settlement loans available. Your decision should also depend on the types of settlement loans that are available to you. What are the terms and conditions of these loans? Are they based on charging an interest rate, or do they charge a flat fee?

Settlement loans aren’t right for every plaintiff or every case, but they do have incredible transformative power. Taking out a settlement loan can provide you with near-instantaneous financial relief and reduce your stress – without jeopardizing your long-term financial future.

If you’re ready to get started, you can apply now with Capital Now Funding!