What Is Pre-Settlement Legal Funding?

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What is pre=settlement legal funding

In contemporary times, the courts of law are over-burdened with cases. The modus operandi of the legal system is also a very technical, exhaustive, and lengthy process. It takes months and, in some cases, years to finally decide a legal matter. 

The delay in the administration of justice can result in serious ramifications. Claimants with meritorious claims may not be able to proceed with the case and fight till the end to receive their rightful share. Unfortunately, victims have to bear the burden of legal fees and regular expenses; in matters of personal injury, expensive medical bills further escalate these financial challenges. 

As there is no government grant as a support mechanism to provide financial assistance to help accident victims, their probabilities of proceeding with their lawsuits decrease. In these conditions, pre-settlement legal funding plays an instrumental role in filling a gap in the justice system, encouraging plaintiffs to fight for their rights without stressing over financial issues.

What is pre-settlement legal funding?

Pre-settlement legal funding (or a lawsuit loan) is a form of financing arrangement between pre-settlement funding companies and plaintiffs. Although the word loan is used as an alternative to pre-settlement legal funding, both terms, pre-settlement legal funding vs. lawsuit loans, have the same meaning.

In this form of legal and financial pre-settlement arrangement, the plaintiff does not have to wait for the final settlement of the dispute to receive the money they need. In fact, a plaintiff can receive cash at any stage of the lawsuit as long as they are formally approved. In return, the plaintiff agrees to sell a specific percentage from the settlement or award to the funding company.

How can pre-settlement legal funding help?

Pre-settlement legal funding for plaintiffs is gaining popularity in different parts of the world because it is a type of financing that carries no risk to consumers.

Conversely, pre-settlement legal funding is a quick and safe solution for the plaintiff’s financial difficulties during the pendency of a lawsuit.

Most importantly, pre-settlement legal funding provides an opportunity for justice and enables personal injury victims to fight for a rightful settlement instead of compromising to unfair terms of the defense party. 

Pre-settlement legal funding can be beneficial for you due to the following reasons:

  1. Pre-settlement legal funding is 100% risk-free for you and your case. That means you are not required to repay the amount you receive from funding companies if you lose your legal case; thus, you do not have to worry about monthly payments. You are also not compelled to provide your assets, credit history, and savings. The amount you borrow only gets paid when you successfully defend your claim after receiving a monetary settlement or jury award from the court of law. If you lose your case, you are no longer legally bound for paying back the borrowed funds.
  2. Pre-settlement legal funding provides assistance to meritorious claims and facilitates justice administration. Due to financial restraints, plaintiffs generally accept unfavorable terms from the defense, ultimately taking a minimum settlement amount. If you are facing a financial burden and the insurance company is exploiting your situation, pre-settlement legal funding provides you with the money you need, so you don’t take their first low offer. It ultimately fills the gap in the judicial system and enables meritorious claims to proceed and resist the pressure to settle for less from well-funded insurance companies.
  3. Pre-settlement legal funding does not intervene in your case. Pre-settlement legal funding doesn’t compromise your pending settlement, and lender don’t make decisions about your case. 
  4. Pre-settlement legal funding is non-recourse; therefore is not a traditional loan. That means the technicalities involved in conventional loans from financial institutions are not applicable to pre-settlement legal financing. Credit and employment history are not part of the funding criteria. Funding companies are primarily interested in the merits of your case. All you have to do is to provide essential information related to your claim and ensure your attorney is actively involved during the process. If your case is strong enough to win and other criteria are satisfied, you will receive funding. It is considered the most accessible and convenient process and one window solution for all your financial woes.

How does pre-settlement legal funding work?

If you have a pending lawsuit and you are waiting for your settlement award, but at the same time, your outstanding financial dues are mounting day and day, all you have to do is apply for pre-settlement legal funding. Once your application is approved, you will receive the much-needed cash you were looking for. Here is how it works:

  1. After you apply for a pre-settlement advance, a funding specialist will contact you to qualify or deny your request. Make sure all information about your lawsuit and your attorney is correct.
  2. Next, your attorney will receive a request to provide your case file. Your attorney will have to provide details of your lawsuit as this is the most crucial part of the funding process. You cannot get pre-settlement funding without an attorney and the application will get denied if they are not present throughout this process. 
  3. If your lawyer provides all required information about your claim, the pre-settlement legal funding process takes 24 hours from that point on.
  4. Lastly, if you’re approved, you will receive a non-recourse legal funding agreement, which you and your lawyer will sign. Once all documents are executed, you will get your settlement loan the same day or the next business day. You can choose to receive the money either by check or direct deposit.

Why choose Baker Street Funding as your go-to funder?

Numerous pre-settlement funding companies offer pre-settlement legal funding, but not all lenders work ethically. Here are some reasons why Baker Street Funding may be your go-to funder:

  • Baker Street Funding is one of the best pre-settlement funding companies in the U.S. and is known for its competence and professionalism. You can check the reviews of our clients, the services we offer, and our proud historical record. Our clients, both plaintiffs and attorneys are satisfied with our services, and we have a long list of repetitive client funding. They also refer our services to their friends, loved ones, and other acquaintances, which reflects their trust in our services. 
  • Baker Street Funding provides fixed interest for plaintiff pre-settlement legal funding capped at a maximum of three years. We have provided all the necessary details about our rates, terms, and caps on our website. Most of our clients are highly satisfied with our contracts. We build a relationship of trust with our clients and provide all possible financial assistance to protect their interests. You can also read more about our low interest pre-settlement loans here or check out our lawsuit loan calculator to calculate how much your advance will cost.

If you are confident about our funding services, you can apply for pre-settlement legal funding and say goodbye to your outstanding financial dues and lenders that charge predatory rates. If you still have some confusion, contact our finance team today. They will listen to your queries and clarify your confusion. Legal experts and clients have vouched for our funding options, so don’t overthink and avail yourself of the opportunity of pre-settlement legal financing today.

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