Though quite popular in countries like United States, payday loans are easy mode of availing a loan in time of need. However, given the high rate of interest which is calculated through APR (Annual Percentage Rate) in case of payday loans, settlement loans have definitely emerged as better choice. However, this lawsuit funding advance can only be availed if you are under the jurisdiction of the court and your case is progressing towards a final verdict. In other situations, you will either have to go for payday loans or bank loans.
However, like everything else, the settlement loan too has a darker side and comes bundled with several inbuilt risks. Some of them could be total loss of liens or real estate property, a house or an agricultural land. Though every legal finance company is not the same and abides by their own set of rules which might be different right from legal funding firm’s working to individual case of plaintiff. Yet as a common thumb rule, the lawsuit settlement funding is offered to those respondents whose case has either reached a final verdict in lower court/ higher court or very close to verdict.
These lawsuit loans or broadly speaking, lawsuit settlement loans are given against a percentage share which has been decided upon by the common consensus between a plaintiff, a lawyer and the commercial litigation funding agency. Though most of the companies do not charge hefty interest charges but yes you never know what is being charged in the name of application processing? So, it’s always better to read the application form carefully and discuss with the funding agency’s officials prior to hiring them for your cash requirements. This will save you from unpleasant surprises when you win the case and are entitled to repay your debt amount.