Lawsuit Settlement Funding is a way for plaintiffs with a pending lawsuit to obtain a cash advance on their expected lawsuit settlement. A lawsuit cash advance benefits the plaintiffs who are often cash strapped and unable to hold out for their case to settle, so instead they will accept a lower settlement amount just to get faster access to cash to meet their financial obligations.
This is where lawsuit settlement loans come in – they give power to the plaintiffs in a personal injury lawsuit so that they do not have to accept a settlement that is below the fair or expected value of their claim. Plaintiffs with a pending lawsuit can apply to a lawsuit financing company to advance them a non recourse loan, the repayment of which is contingent upon the successful outcome, and hence cash settlement of their case.
Lawsuit settlement funding or lawsuit cash advances are becoming much more acceptable both in the legal and finance communities. The benefits to both plaintiffs and their attorneys are clear. A plaintiff who has suffered physical injury will undeniably find it difficult to work and hence will be in often dire economic circumstances. Often they are unable to make mortgage payments, monthly bills and other daily living expenses. Similarly, if they are in such financial trouble they will find it difficult to obtain a bank loan which requires a significant amount of credit and employment verification. This is where lawsuit settlement funding can help – by advancing the plaintiff a cash amount today, they can deal with their living costs and stay in the case without having to accept a lower settlement amount.
Obtaining a lawsuit cash advance is the easiest option in comparison to other lending avenues. Lawsuit loans require no income or credit checks and these days an application can be filled out online. The determining factor as to whether a plaintiff is issued the funding is the mere merits of the case, nothing else. The settlement funding company will look at the facts of the case and the expected outcome and make a decision on the amount to be funded based solely on this factor.
Another important element of lawsuit cash advances is that they are non recourse in nature, meaning that if the case is lost, there is nothing to repay. The funding company bears all of the risk and the plaintiff is only liable to make the repayment if and when they receive a legal settlement of their case.
The first step to obtaining a lawsuit cash advance is to contact a reputable legal funding company, preferably one that has been in the industry for a number of years. Customers should always compare rates and not hesitate to negotiate the rates if they feel they are too high. This type of legal funding is relatively quick to process and upon approval, plaintiffs should expect to receive their funds overnight.
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