A FURTHER LOOK INTO LAWSUIT FUNDING
Lawsuit funding is also widely known as lawsuit loans
Put simply, as stated above, lawsuit funding (aka lawsuit loan) is the process in which plaintiffs in personal injury lawsuits are provided cash in advance of their lawsuit settling. Upon settlement the plaintiffs attorney will pay back the funding company the principal amount as well as a guaranteed rate of return. If the case does not settle for some reason, you are not obligated to pay back the funds. The amount of the advance is determined by the funding company who will analyze the merits of your case and determine how much of the future estimated settlement amount they can make available to you today. Lawsuit loans do not involve credit checks or job checks and are solely based on the funding company’s analysis of your case and the probability of it being successful.
A lawsuit loan is sometimes referred to as “settlement loan” or “lawsuit advance” or a "lawsuit pre-settlement cash advance". Essentially, this is an advance on the proceeds of your future lawsuit settlement.
COMPARISON OF FINANCIAL INSTITUTIONS VS. LAWSUIT FUNDERS
Pre-settlement funding companies vs. financial institutions
Plaintiffs normally look at other financial options for funding before turning to lawsuit loans. This could involve bank lines of credit, reverse mortgages, borrowing from friends and family and other options. While some of these options can carry less interest than a lawsuit loan, they can also be based on factors like personal credit and job history. If you do not have spotless credit then many banks will not lend to you. Most plaintiffs find themselves in a position where they are unable to pay their bills and their credit is negatively affected leaving them unable to get traditional financing from banks. This is where lawsuit loan companies come in. While traditional banks do not recognize the proceeds of a lawsuit as collateral, lawsuit loan companies do.
THE TWO MAIN TYPES OF LAWSUIT FUNDING
Pre-settlement funding and post-settlement funding
The two main types of settlement funding are pre and post-settlement funding. Simply put, pre-settlement funding is given when your case has not yet settled and the award amount of your case is unknown. These are the most typical types of lawsuit loans and carry higher interest than pos-settlement loans because of the extra risk involved. Post-settlement loans are given when your case has settled but you have not received payment yet. While lower risk, these advances are not risk-free because there is still a chance that the defendant can default on the judgment and not pay.
THE PRE-SETTLEMENT FUNDING APPROVAL PROCESS
YOUR APPLICATION
Baker Street Funding’s team of lawsuit funding advisors will handle the intake and review of your application. Depending on a number of factors, you advance will either be funded by us in house or with one of our parter firms with a relationship based rate. To get started you can either call our 800 number or apply with a few simple clicks online. Learn more >
YOUR ATTORNEY
Our team will work with your attorney to ensure our underwriters understand your case and get you the most amount of funding available now. Baker Street Funding requires you to be represented by a bar licensed attorney and for that attorney to participate in the due diligence process. The faster your attorney responds to our questions, the quicker your application will get approved. Baker Street Funding will, with your permission, contact your attorneys office to get a copy of your case file. Once we review your case documents we will have a call with your attorney to address any questions we may have about your case. After that conversation, our underwriter will issue an approval or denial. If approved we will send out paperwork for you and your attorney to sign.
YOUR FUNDS
Once we receive back signed copies of the lawsuit funding contract from both parties, we will immediately distribute the funds in the manner you choose. Funds can either be sent by bank wire or by overnighting a certified check to the address of your choosing.
THE LAWSUIT FUNDING PROCESS CONSISTS OF
ANALIZATION BRIEFING
This process consists in the analyzation of your case for the purpose of underwriting a settlement advance through the following three main factors:
1) FAULT
The first thing we look at is fault. We look at the facts surrounding the incident as well as the police report (if applicable), or any other supporting documents to verify that the defendant in your case is at fault.
2) INJURY
In accident cases, the second thing we look at is injury. We look at the ambulance and emergency room report and any other medical files so that we fully understand the extent of your injuries. If needed we also provide surgical funding to help you pay for surgery as a result of the accident.
3) INSURANCE
Finally we look at the defendant’s insurance coverage. This part is simple: we make sure the defendant in the case was sufficiently insured to cover the damages and/or injuries that resulted from the incident.
RECOGNIZE THE PRO'S AND CONS PRE-SETTLEMENT CASH ADVANCE
BE ON TOP OF YOUR GAME
There are many pros and cons with working with a lawsuit funding company. Since settlement funding is a relatively new industry, there are some companies that may try to take advantage of your situation. Learn more >
THE BEST LAWSUIT LOAN DEAL POSSIBLE
Knowing what your rate is and what is on your contract is imperative. While the rates can be high for a settlement advance, make sure the funding company you work with clearly explains the contract to you. At Baker Street Funding, we help you get the best deal possible on your lawsuit settlement loan, period. Learn more >
ASK QUESTIONS ABOUT SETTLEMENT LOANS
Always ask questions and if you ever feel uncomfortable with the company you are working with, it is always fine to get a second opinion. Learn more >
COMPANIES' SALES TACTICS
If you ever feel like the funding company is using high pressure sales tactics to get you to close on a transaction that you don’t understand you can always walk away and call someone else. Learn more >
PROMISES OF FAST LAWSUIT LOANS
Most legitimate settlement funding companies can close a transaction for you in as little as 48 hours. There can be complications with your case that can make the process much longer, but if your attorney is being responsive and the funding company is dragging their feet, get a second opinion. Learn more >
MYTHS ABOUT LAWSUIT FUNDING
Learn more about the famous myths about lawsuit loans here.
WHY BORROW MONEY AGAINST a FUTURE SETTLEMENT
If you don't win, you don't pay back the lawsuit advance
Every situation is different. Many plaintiffs find themselves in the position where they are injured from their accident and unable to make ends meet. Lawsuit loans help bridge that gap and provide them with the necessary cash to cover life’s expenses. If you have a lawsuit you can easily apply for lawsuit funding also known as 'a lawsuit cash advance'. A settlement funding company will evaluate the merits of your case and if the case is strong, will offer you upfront cash for the promise of repayment with a pre-determined rate of return when the case settles. They are not based on your financial history as stated above and job and credit checks are not needed. These funds are non-recourse and only paid back upon successful settlement of your claim. If you don’t win, you do not pay back the lawsuit cash advance. We practically take the fall on it. The payment is dispersed to the funding company ONLY when your settlement check arrives and the balance is paid to you.
IS A LAWSUIT LOAN or settlement funding RIGHT FOR YOU
Needs and trust
A lawsuit loan is not the right choice for everyone, but if you find yourself in the situation where you are unable to obtain traditional bank financing and are in desperate need of cash, it could be the right choice. As with any financial transaction, knowledge is key and education yourself on the ins and outs of how a lawsuit loan works could end up saving you thousands of dollars when your case settles. Always work with a company you trust and always try to get a second opinion. If you find yourself in a financial hole that a lawsuit loan can help you out of, and you think the rate is fair for the risk that the funding company is taking, a lawsuit loan can be a great tool to help you fight for the settlement you deserve instead of taking a lowball offer from the insurance company because you have to pay your rent. Baker Street Funding is one of the top lawsuit funding companies in the market here to help you find the right lawsuit advance program through a positive, clear, concise and benevolent approach. From the moment you apply, you will get live updates on your settlement funding process all the way to the moment you get paid. Baker Street Funding works with you every step of the way to make sure your experience is the best it can possibly be by keeping the client informed throughout the entire legal funding process and approving higher amounts with lower rates than our competitors.
Get the cash you need as quickly as possible, Baker Street Funding will provide you with the best possible rate with no hidden fees and mark ups.
GETTING HELP FROM A TOP LAWSUIT LOAN COMPANY
FINAL WORDS
Pre-settlement Funding from top companies like Baker Street Funding that has been mentioned on major media outlets with 5 star reviews has helped thousands of Americans get through the hardships life brings when facing a lawsuit especially those involved on personal injuries. Lawsuit Funding is a MAGNIFICENT way of getting access to your future settlement award when you pick the right company. Then, you can re-arrange your finances. Getting the lawsuit cash advance you need now secured by your future settlement award can help make this change. Whether you’re looking for an auto accident lawsuit advance or you’re in need of a small lawsuit loan, we’ve got you covered. Baker Street Funding is a leading online pre-settlement funding firm with one of the most efficient underwriters in the nation. Some of our services include:
- Lawsuit funding can help you avoid the pitfalls of settling quickly for less money by making the cash you need now available so you can fight for what you deserve.
- Pre-settlement funding company like Baker Street Funding can help you find the most convenient program advance on your lawsuit settlement for your time in need.
- We work with you every step of the way to make sure your experience with us is the best it can possibly be.
- We work with some of the best former attorneys in America to help us efficiently evaluate each case and provide you with the help you need in the fastest time available.
- We have the quickest turn around times in the industry to get you the cash you need when you need it.
- We make sure you get the FASTEST legal funding solution at the lowest rates possible.
- If one of our competitors offers you a good rate, we will beat it.
