Lawsuit loans are a good way to push your case to getting a better settlement offer. You’ll use the avanced funds toward your utmost necessary expenses. Other good reasons you can use pre-settlement funding include paying for rent, mortgage, medical bills or past due bills.
Pre-settlement funding also allows personal injury victims to borrow large amounts of money against their pending lawsuits and use the cash to pay their daily expenses and medical bills.
Some people get the impression a pre-settlement loan isn’t a good idea, but that isn’t always the case. Pre-settlement funding from the best lawsuit loan companies provides you with low-interest rates and may even indirectly help the outcome of your settlement for the better. For example, using the risk-free cash advance to pay off your rent instead of settling your case for less (so you could pay your rent) could help you increase the chances of getting a better offer from the insurance company for the settlement you deserve.
However, obtaining an advance from your settlement could result in you bringing less money once you receive your settlement payment, but this will only be a slight decrease with a reputable pre-settlement loan company.
When should you choose pre-settlement funding?
For the most part, pre-settlement funding is a good idea since it has no risk, and the repayment is subject to winning the case. Choosing to receive pre-settlement funding depends on your current circumstances and who the lender is. From a financial standpoint, a lawsuit cash advance could be right for you if it’s the only financial option you have left.
If your claim is not yet settled but solid and you are in significant need of cash, then getting a pre-settlement loan from a reputable lender could be the right solution. This is because your rates will be non-compounding, and the loan won’t affect your monetary recovery.
Moreover, if you have a settled case, you may be able to secure a much lower interest rate. But remember that the cost of the settled case loan can still be higher than a conventional bank loan. This is because the defendant can appeal your settlement, and you can still default on the loan if you don’t win your case.
Ultimately, only you can decide if a pre-settlement loan with a lower rate (but higher than a bank loan) is worth the risk of potentially getting less money from your settlement since you’ll have to pay back what you borrowed after you win your legal battle.
When is pre-settlement funding not convenient?
Pre-settlement advance is not convenient for plaintiffs with cases that have not been filed yet or are not solid. The reason for this is that some while companies can provide a small amount of funding for plaintiffs with premature legal claims; these small amounts have interest rates as low as 80% yearly.
If this is your situation, it would be best if you take some time to borrow money from friends and family—if you can wait.
Another downside to pre-settlement loans is that there are predatory companies that, no matter how strong your case is, they’ll still charge you rates starting at 50% per year.
Having a copy of your case file and ensuring that you get the necessary medical treatment early on can boost your chances of getting approved for a pre-settlement lawsuit loan with a reputable lender and help you qualify for better interest rates.
The takeover
If you need cash right away, you might consider speaking to your attorney about applying for a pre-settlement loan. Your lawyer could potentially put together the required case file in place so you can qualify for the loan and get a lower interest rate overall.
Baker Street Funding provides most plaintiffs with solid cases the money they need in 24 hours. And if your case is new but you have scheduled surgery, you could have access to a small advance with favorable interest rates if you choose to get a loan through Baker Street Funding. As your claim progresses, you could take out additional pre-settlement funding.
Check out if you pre-qualify for a pre-settlement advance in just a few minutes—with no strings attached.
