There are a lot of reasons a plaintiff might desperately need a cash advance on an insurance claim. A particularly backed-up bill might make an insurance claim cash advance seem appealing.
In personal (or bodily) injury claims such as car accidents, malpractice of medical personnel, wrongful death, construction accidents, pedestrian accidents, etc., you are entitled to claim compensation from the party responsible for the injuries caused to you.
However, personal injury claims have risks. The adjudication process is lengthy, and you will have to wait for months and years to finally receive the compensation award you deserve.
Not being able to afford day-to-day expenses, rent, and medical bills can be an unfortunate fact of a personal injury plaintiff.
Even though you have a meritorious claim and the other parties’ fault is explicit, it can take months or years to finally decide a case. In fact, you have no other choice but to wait for the final settlement of your pending legal claim to receive a monetary award.
During this time, you will feel pressure to pay your most essential expenses. These costs don’t usually wait until the insurance settles a lawsuit or until there’s an offer large enough to cover them and your damages. To put it into perspective, the insurance industry is known to employ delaying tactics to victims, so the mounting bills and financial liabilities will compel them to agree to lower settlement proceeds and receive the money as soon as possible.
The good news is that you don’t have to fall into the defense attorney’s trap of depriving you of your rightful settlement or award. You can maximize the value of your injury settlement, pay your bills and resist the pressure of settling for less than you deserve by getting a cash advance for the injury claim you have against the insurance company.
Let’s analyze all essential aspects of cash advances on pending insurance accident claims. For the purposes of this article, we will use the terms pre-settlement loans, pre-settlement funding, and lawsuit cash advances.
What Are Pre-Settlement Loans?
Pre-settlement legal funding (or a pre-settlement loan) is a non-recourse cash advance against your insurance claim that you get from a lawsuit funding company.
A pre-settlement loan is often confused with traditional loans, but it is not a loan in technicality. Litigation funding companies treat these advances from future settlements as potential investments. A pre-settlement loan is a form of non-recourse debt.
In non-recourse financial arrangements, a funding company will evaluate the merits of your case, and if you have a strong claim, you will be eligible to get a non-recourse loan offer.
A funding company does not require credit or employment checks to approve the loan. But in return for the advance, you will agree to pay a specific percentage from the final settlement you will receive from the court of law. That is when you win your case.
Alternatively, pre-settlement funding is solely based on the proceeds of your pending claim, and it has no risk to you. You only pay back the cash advanced to you once your legal case successfully settles.
Legal funding enables you to take on the well-funded defendant while caring for your immediate essential financial needs.
How Do Pre-Settlement Loans Help Accident Victims?
In personal injury claims, the defense site employs different tactics to drag a settlement case, especially in cases where the defendant’s fault is clear, and you have a high probability of success. A cash advance on insurance claims (also known as pre-settlement loans on accident settlements) may help plaintiffs fight for the best compensation while paying their immediate expenses.
- In a matter of 24 hours, Baker Street Funding quickly provides you with financing at any stage of your lawsuit settlement or injury claim, so you can pay your financial liabilities while your attorney prepares your case to win big.
- The risk-free funding you will receive before (or after) your legal claim settles has capped rates. A capped rate helps you take care of your most essential needs at peace, knowing that the interest stops in 2 to 3 years, no matter when the insurance settles your case.
- Whether you need a cash advance for a car accident or a loan for a slip and fall, we provide funding for most types of personal injury cases.
- A lawsuit cash advance from Baker Street Funding will ease your difficulties and provide you with an advance with much lower rates than other companies. You will have the resources to resist pressure to settle your case for pennies on the dollar from well-funded insurance companies.
- A cash advance on your legal settlement can help you maximize it so you receive the the monetary award you are legally entitled to get in the given circumstances.
How Can I Get An Advance In A Lawsuit?
The lawsuit funding process is simple and fast. First, you need to apply for a lawsuit cash advance. Then you have to ensure your attorney provides all the required information about your claim. Once we receive your case file, our underwriting experts will quickly evaluate your case, and if your application is approved, you will receive your cash advance the same day or the next business day after signing the funding agreement. It’s that simple.
You can get a non-recourse loan on your injury claims as long as your case is strong enough to win. Other requirements are:
- You must be 18 years old of age +
- You must be suing a well-insured defendant.
- You must have retained a personal injury attorney on contingency.
- Your attorney must consent and sign on the loan, otherwise, you cannot get pre-settlement funding without your attorney’s consent.
- Your case must be worth $50,000 or more.
Qualifying injuries covered by insurance companies which Baker Street Funding can offer pre-settlement funding on include:
- Broken bones
- Traumatic brain injury
- Soft tissue injuries
- Burn injuries
- Neurological disorders
- Laceration injuries
- Neck injuries
- Loss of senses
The following are some of the most common cases that we accept. If your case is not on the following list, we may still be able to help.
- Slip and fall
- Motor vehicle accidents
- Nursing home neglect
- Wrongful death
- Medical malpractice
- Wrongful imprisonment
How Much Cash Can I Get From My Pending Lawsuit?
The amount of money you will receive from any funding company depends on the circumstances of your case and the compensation award you have claimed from the court of law.
For instance, the insurance company offered you $100,000, and your attorney declined that offer. In this case, a lawsuit funding company can provide you with 10% of the offered amount. That means that you can get a maximum of $10,000 in funding. If they offer a higher amount, then your funding approval will also increase accordingly.
If you want to receive pre-settlement funding beyond the amount we offer to you, your attorney can negotiate with our finance team. We provide all possible support to our clients.
If your case is settled, we can provide you with up to 30% of the settlement amount as long as there are no open appeals.
How Does Repayment Work?
The repayment of a pre-settlement advance is simple. After your attorney receives financial compensation for your litigation, that monetary award will be transferred into their trust account.
From that point on, your attorney will pay all liens you are in debt with. Once all liens are paid, including attorney’s fees, your lawyer will pay back what you took out, plus fees and interest on the agreed-upon loan amount.
What Happens If I Lose My Case?
Lawsuit funding companies agree to provide you with a specific percentage of your settlement award on a non-recourse basis, as explained above.
That means if you lose your case, and you do not receive any money from the courts, you will not be legally bound to pay the amount you received from the company, and even better, they won’t touch your assets.
At its simplest, legal funding is 100% risk-free for consumers. You have to pay what you borrow only if you win your injury claim.
Accident insurance companies are in the business of helping injured plaintiffs; unfortunately, most of them exploit the victim’s financial restraints and weaknesses with the goal of offering undervalued settlement amounts. These setbacks work in the insurer’s favor.
Baker Street Funding recognizes the financial issues you are facing in this challenging phase of your life and also understands how insurers and their policies work. Although you may be receiving constant messages from the hospital to pay the outstanding bills, or are struggling to pay your regular expenses, you are not alone.
Being one of the best accident loan companies in the U.S., Baker Street Funding provides plaintiffs with financial assistance for their accidents nationwide with low rates and in the quickest time possible.
You have the ability to be in a position to fight for your rightful settlement; pay your urgent expenses and decline an unfair settlement payout. You don’t have to succumb to the pressure of the defendant’s insurer.
Your lawsuit is your own unique asset, and just like you would insure your home, your automobile, or even your own life, you can protect it and borrow against it with a lawsuit cash advance against the insurance claim. Apply for low interest pre-settlement loans and get your lawsuit cash today.