Every year, thousands of people become victims of personal injury. Most of the time, they prefer not to file a case against the people and entities responsible because they are worried about the impending costs of litigation. The truth is, there is a way for you to file a lawsuit without getting your finances in jeopardy and that is by means of a lawsuit loan.
This kind of loan refers to pre-settlement lawsuit funding, which is technically not a loan but rather, an advance fee given by a finance company. The main advantage of this kind of financing is that there’s no risk to you (the plaintiff) if in case the lawsuit settlement is less than the amount you borrowed or even if there is no settlement at all.
There are many reasons why people have resorted to a lawsuit cash advance loan instead of other options.
First of all, there is no need to sell your properties or use them as collateral. If you have a good case, it won’t be hard to find a finance company specializing in pre-settlement loans to offer you financial assistance. Usually, you will need to undergo a qualifying process before you are granted a loan.
There are also no upfront costs involved. You can apply for legal funding without having to pay application fees and related costs. So, even if you don’t qualify, you don’t lose anything.
Next, your credit score will not affect your application. Even if you have a poor credit score or no credit history, your lender will not use it as basis for loan approval. They will only assess how strong your case is, before they will grant you the loan.
Finally, a lawsuit cash advance loan gives you peace of mind. Personal injury lawsuits can be very expensive, and oftentimes, they take months or even years before they get settled. Without legal funding, you will struggle, financially. But by obtaining a lawsuit loan, you can pay your bills and other expenses while you wait until your case is settled or won.
Is a Lawsuit Loan Right For You?
In spite of the many benefits of this type of loan, it’s not for everyone. The cost of a lawsuit cash advance loan is much higher than bank loans due to the risks involved. After all, a lawsuit can go either way. If you win or arrive at a settlement, then your lender gets paid. If not, then they don’t get paid. So, understandably, the costs are higher to offset the risks.
However, if you have bills to pay and you have no other source of capital, then it may be necessary to obtain a lawsuit cash advance loan to avoid having to deal with a financial crisis brought about by your personal injury case.
Find a reputable lender that offers the best possible terms. Remember that opting for a lawsuit loan entails higher than normal costs so it’s always wise to consider your options carefully and go through several lenders before making a decision.