Is Pre Settlement Funding a Lawsuit Loan?
Some pre settlement funding companies advertise that they provide “lawsuit loans”. This is misleading as they are not telling you the complete truth. No company is legally able to provide a lawsuit loan. The correct term instead of a lawsuit loan is non-recourse financing.
It is easy to confuse legal funding with lawsuit loans, as they appear to have similar characteristics as unsecured loans. With a loan, you are required to pay back the funding even if you lose your case. This is much like a mortgage, credit card or car loan. However, with Legal Funds Now’s pre settlement financing, we provide a no-risk funding solution to you.
What is Pre Settlement Lawsuit Funding?
Pre settlement lawsuit funding is a non-recourse cash advance provided to a plaintiff in a pending a lawsuit or insurance claim. Non-recourse means that if you don’t win your lawsuit or receive a settlement, you do not repay the advanced funds. A lawsuit funding cash advance is only repaid at the time you win or settle your case.
When do you need Lawsuit Funding?
Funding is provided to help plaintiffs with their immediate financial needs for living expenses and other financial obligations, such as medical care, while pursuing their claim.
Even though some lawyers (such as injury attorneys) offer their services on a contingency basis, some plaintiffs are not able to cover day to day expenses or medical bills, before their claim is settled. When plaintiffs are struggling financially, insurance companies may offer a settlement amount that is lower than what is rightfully due by law. It is their hope that since the plaintiff needs money to get back on their feet, they will settle for a smaller amount than the fair or just value. Don’t settle for less than the fair value of your case because of financial pressures. Legal Funds Now can help!