Wednesday, October 4, 2023

5 Reasons You Might Need a Pre-settlement Loan.

October 28, 2021 by  
Filed under Business, Money, Opinion, Weekly Columns

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( Several financial burdens often challenge accident victims waiting for the settlement of their cases. This is especially since credit unions and banks are not always willing to offer help to those seeking financial assistance. 

Fortunately, there is another funding option specifically for personal injury victims seeking financial support while they wait for the compensation from their claim. Companies such as Money First Funding provide the monetary assistance needed by these individuals beforehand; to be paid back from the settlement, the borrower will recover from the lawsuit.

The amount of settlement fund you can receive is determined by the estimated worth of your claim. Once you have filed a personal injury lawsuit or any other suit under tort law, you become eligible for a pre-settlement loan. However, your loan provider will need to carefully evaluate the facts of your case to determine its credibility and chances of success. 

This is mainly because of the loan’s no-risk factor; you don’t have to pay back the loan if you lose the case. Let’s take a look at why you may need a pre-settlement loan.

settlement - preloan

How Does One Benefit from a Lawsuit Loan?

1. Instantaneous Funds

Pre-settlement loans are allocated to you as soon as your application is accepted. You can get the funds immediately and cater to your hospital bills, ongoing treatment, and other financial needs. 

2. No Risk

The biggest advantage of seeking a lawsuit loan over regular loans is the lack of risk. If your claim goes south and you receive zero compensation, you won’t have to pay back the loan.

Unlike traditional loans, where you would need to pay back regardless of your case outcome, a lawsuit loan is a much more favorable option.

3. Ample Time for Negotiations

Some personal injury lawsuits are settled fast because of the financial desperation the victim experiences during the waiting period. For this reason, the liable parties tend to pay a lower amount than required for the claim. 

Most insurance adjusters tend to make low offers, knowing the plaintiff may accept a petty amount out of desperation. Getting a loan lets you negotiate for the proper amount of settlement you deserve.

4. Helps You Stay Afloat

As a result of your injuries, you may be unable to work and earn money to help you cater to your domestic expenses. You may have unpaid rent or power bills to take care of and no way to do so. A pre-settlement loan allows you to have a sustainable income as you wait for your case to be settled.

5. Does Not Require Any Credit Checks

Unlike traditional loans, acquiring a pre-settlement loan is fast and easy. There are no credit checks required for your loan to be approved. The only requirement is the evaluation of the credibility and the probability of your case’s success. If you have a strong case, you are eligible for a lawsuit loan.

A Lawsuit Loan Can Be a Viable Income Source When in Need

It’s not always easy to cope after suffering from an accident, especially if you’re undergoing continuous treatment. If you have a strong case, you do not have to wait for months before you can ease your financial needs. A lawsuit loan helps you stay afloat during tough times.

Staff Writer; Phil Ross

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