If you are a plaintiff in a lawsuit (like a lawsuit concerning a personal injury claim such as in auto accidents), for sure you would like to win your case. The downside – it takes a very long time to really complete your case via all legal channels. In the meantime, you may need to have cash to help you pay your bills. In this case, you have an option to apply for cash advances against your pending litigation without having to apply for a regular standard loan to pay all the bills. You may consider pre-settlement funding such as pre settlement loans auto accidents. So what is it?
Understand Pre-Settlement Funding
How does pre-settlement funding work?
After applying for a presettlement loan, a funding company will get in touch with your lawyer regarding your case. They will assess your case and from there it will give them a clear idea of the amount you can get against your case. With these details, the company can give you a portion of this amount like a cash advance. As soon as the lawsuit had been finalized, the amount advanced to you (plus a funding fee) will be repaid from the settlement amount. This means you will not get the whole settlement amount, however, you do receive the benefit of getting a bulk of the money straight up.
This type of loan will not require you to pay any monthly prepayment until you win your case. If you do not get any settlement deal in any way, you are not held accountable for paying back the cash advance you have received. This is the risk that the funding company will have to take when they agree to provide you cash advances against your loan. Therefore, while the presettlement loan is referred to as a loan, it is in fact not a loan because the plaintiff does not have to pay anything in case they lose their lawsuit.
Choosing the Best Cash Advance Settlement Business
There are various points to consider when selecting a cash advance presettlement funding company.
- Make sure the funding company operates within the state. They do not have to be situated in your state, however, they should have the license to work there.
- Compare offers. Several companies may provide different percentages of your expected settlement amount.
- Learn how much interest they will charge every month before receiving your settlement money. This really is vitally important since it directly affects the amount of money you might get as soon as your lawsuit is settled.
- Take a look at the frequency of which the business compounds the interest rate. This could mount up fairly quickly that interest compounded can be more expensive when compared to an extended compounding term.
Regardless of how much money needs you are in, make sure to thoroughly compare and contrast offers to ensure you are making a smart decision. You could consult your lawyer for assistance or talk with a financial consultant should you be unsure of what’s presented to you. An established legal settlement firm must also have a good customer support staff that could discuss everything in very clear words and phrases to provide you with an even better thought of what to anticipate.