A car accident settlement could come in handy if your settlement pays fast. But that’s not always the case – you could potentially be waiting months or years before you see your settlement money.
Bills and living expenses don’t know when to stop coming or piling up, not even when one is involved in a car accident. Unfortunately, car accidents can result in loss of wage or loss of employment, and this translates to a heap of bills and debts.
If you are struggling to pay your bills because your injuries are taking so much money from you, you may be asking yourself if you can take a loan on a car accident settlement. The good news is that you can. Don’t lose sleep over money pre-settlement loans for car accidents are available to qualifying motor vehicle accident victims.
Taking a cash advance on a pending car accident lawsuit or future jury award will help eligible personal injury claimants take low-rate loans to cushion the financial pressure of litigations, especially from protracted lawsuits. Even though pre-settlement funding (or pre-settlement loans) is not new around the block, many personal injury plaintiffs have yet to wrap their minds around it and how it works.
What is a car accident pre-settlement loan?
You can think of a pre-settlement loan for car accidents as non-recourse cash advances based on future compensation. Also known as lawsuit funding or pre-settlement funding, pre-settlement loans are free of risk, and they can serve as financial aid for injured plaintiffs when strapped for cash.
While personal injury victims can take loans from banks and other traditional lenders, they often come with high-interest rates and monthly payments. Since legal proceedings are almost impossible to predict, plaintiffs often get stuck with debts if they lose a case.
Thankfully, that’s not the case with pre-settlement funding. Thus, opting for settlement funding saves you the burden of repaying both the principal and interests if the car accident case doesn’t settle in your favor.
How does pre-settlement funding work?
If you are ever in need of fast lawsuit loans and are not sure how to get started, don’t worry because Baker Street Funding offers free consultations and quick case evaluations to determine whether your car accident case qualifies for settlement funding.
Here is how Baker Street Funding fast settlement loans work.
Before you get started, it is very important that your attorney consents on helping you out with the advance.
Then, all you need to do is fill out the application form online and let our team of experienced funding staff take it up from there. Once your pre-settlement funding application gets through to us, our dedicated team will contact your personal injury attorney for the case file and other relevant information about the claim.
Upon receiving your documentation, our underwriters will perform a 24-hour review. If the case checks all the boxes of merit, a contract will be formulated for you and your attorney to sign before your funds are released. The agreed loan amount will only be paid when the contract has been executed.
Baker Street Funding allows plaintiffs whose case qualifies for pre-settlement funding to take up to 10% of the pending car accident settlement value or between $1,500 and up to $2,000,000+ while the accident claim is still pending or has been settled and you are awaiting compensation.
While other lenders can offer you a cash advance on your settlement at compounding rates that can climb up to 200% a year, Baker Street Funding’s pre-settlement funding rate is fixed starting at 24% for attorneys up to 41% a year for plaintiffs, averaging at 36% a year for strong personal injury cases.
However, you can get more than 10% of the loan on the potential car accident settlement proceeds if you require multiple surgeries to treat your injuries. While you are at it, you must ensure that the other party (whom you are suing) has insurance coverage and you have an attorney representing your case on contingency.
How soon can I get funding?
The agreed loan amount will be deposited into your account within 24 hours. All you need to do is consult with your attorney before applying for a litigation loan. That way, no time will be wasted when our underwriters request the case file.
Do I have to pay interest and principal if my case doesn’t settle in my favor?
Unlike traditional loans where you have to repay the loan amount (principal and interest) whether the case settles in your favor or not, you are not obligated to repay the loan if you lose the case — which explains why they are called non-recourse loans.
Can my attorney give me a loan for my car accident settlement instead?
You have probably wondered why you should take a pre-settlement loan from a company when you can ask your attorney for the loan. Well, taking loans from your car accident attorney to invest in your lawsuit will affect their judgment because of their financial interests. Aside from influencing the sense of judgment, lawyers are prohibited by their work ethics not to get financially involved in the case.
Breaking that rule can land them in big trouble and could result in suspension from practice or disbarment. While your attorney cannot give you a cash advance on your car accident settlement, they can advance funds for expenses such as court fees, deposition expenses, and the cost of gathering evidence.
What types of auto accident lawsuits do you fund?
Loans for car accident settlements are available for almost every type of motor vehicle accident lawsuit. Some of our most typical claims and injuries include:
Here are the top benefits of getting pre-settlement funding loans for accident victims
- Financial relief during litigations
If you or someone dear to you is involved in car accidents and needs money for treatment, you can apply for pre-settlement loans for auto accidents. Also, considering that one will be out of employment and car accident injuries take longer to heal, such lawsuits take longer to settle.
As such, one can only imagine how difficult life can get if the car accident lawsuit gets protracted and you run out of cash to sustain the momentum in your case. To avoid getting caught in such an unpleasant situation (where you may start to consider low-ball offers from defense attorneys), you can consider taking a cash advance on your future settlement.
- Pre-settlement loans are fast and quick to get
Unlike traditional loans, where you will spend a lot of time on paperwork, credits checks, and employment checks, you can get pre-settlement funding for your car accident case without delay — in most cases, you will get approval within 24 hours.
All you have to do is fill out the application form and get your attorney to submit the necessary documents for evaluation. If your attorney submits all the necessary documents on time, you can get settlement loans the same day.
- No credit checks
Having mentioned credit checks, it’s an open secret that you will undergo credit checks before obtaining loans from financial institutions like banks or credit unions. However, that is not the case with pre-settlement funding. You don’t need to have good credit scores to get a fast loan on an accident settlement.
In addition to providing quick financial relief, another reason to get a settlement loan is that it is convenient. You don’t have the leave the comfort of your home to apply for fast pre-settlement litigation funding.
Pre-settlement funding is a fast and easy means of getting a cash advance on your future lawsuit award or car accident settlement. It provides instant funds to cater to important bills and other living expenses during your ongoing case.
In addition, the loan amount is intended to give you peace of mind and save you from the financial stress that trails car accident lawsuits.
A cash advance on future settlement will also save you from deceitful defense attorneys seeking to capitalize or prey on your financial status to make you drop the case or settle early.
Baker Street Funding offers fixed low-interest pre-settlement loans at no hidden fees and out-of-pocket expenses. Even better, fund your car accident settlement case with us and get a capped rate. This means that if your case takes longer than a three-year cap to conclude, all interests end in that third year.
You don’t have to worry about taking more than you need because our pre-settlement loan calculator will help you decide the right amount to take to boost your chances of taking out additional lawsuit loans if the need arises.
Learn more about how taking out a loan on a car accident settlement case with Baker Street Funding can help with your most essential costs. Apply to get started.