What Are the Advantages of Pre-Settlement Funding?

Did you know that you can receive money from your lawsuit while you await the verdict of your case? Most people assume that they have to wait until the resolution of their case before they can receive any money to help pay their bills and other expenses.

Depending on the nature of your lawsuit, you may have injuries preventing you from working and keeping your household afloat. If this sounds like you, you could benefit from a pre-settlement funding option. Please continue reading below to learn more about pre-settlement funding, how it works, and who you can contact to receive money.

What Is Pre-Settlement Funding?

A pre-settlement, also known as pre-settlement funding, is an advance on your lawsuit which allows you to access money from your court award before the final rendered decision. Many people use pre-settlements to help pay their bills and other financial obligations while waiting for their lawsuit’s end.

How To Get a Pre-Settlement Payment?

If you need cash immediately, you can work with a reputable company that offers pre-settlement services. If you would like to, you can speak with your attorney about your legal options and the strengths of your case. The pre-settlement company will work with your lawyer to verify the amount you could receive as a pre-settlement.

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Benefits of Pre-Settlement Funding

Several benefits come with pre-settlement funding. For example, it helps to ease your financial strains. You can use this money for virtually anything you need.

Examples of what you can use your money for:

  • Living expenses
  • Car payments
  • Mortgage payments
  • Rent
  • Medical bills

A cash advance can provide you with quick money to keep your head above water. This is extremely helpful, especially if your attorney projects that your case may take some time to settle and you need money now.

Can Hold Out for a Larger Settlement

If you have financial pressures, you may feel like you have no choice but to take the first settlement offered in your injury case. Although you will get the cash you need, it may not be enough to cover your expenses.

Instead, you can receive cash through a pre-settlement company while you wait. This also gives your lawyer more time to work on your case, which could be an even larger settlement.

No Credit Check

Most pre-settlement funding companies don’t run their clients’ credit when weighing your application. Instead, they consider the outcome of your lawsuit. If there is a strong chance that your case could win, they will extend you a loan.

No Need To Pay Them Back

There is no need to pay back the pre-settlement funding company out of your pocket. Because they rate your loan based on the strengths of your case, the pre-settlement funding company is looking to lend money based on you winning your case. Once you win your case, your attorney will pay back what you borrowed from the company.

It Gives You Peace of Mind

Depending on your agreement with the pre-settlement funding company, you may not have to pay anything, even when your case loses. Even if there is a difference between what you’ve won and what you received to you, you won’t have to pay for that.

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What Happens if I Lose My Case?

One of the best things about pre-settlement funding is that you won’t have to pay anything, even if you lose your case. Similar to hiring a lawyer who works on a contingency fee basis, there is no payment unless you win your case.

This is why there is so much paperwork when filing your pre-settlement. The lawsuit funding company needs to ensure they will receive their payments before they issue you a loan. If there is a chance that they may not recoup anything, they may not extend you any loans.

Key Takeaways:

  • Pre-settlement funding is an advance on your lawsuit which allows you to access money from your court award before a decision is made.
  • Pre-settlement funding can ease financial strain as you can use the money to pay rent, mortgage, medical bills, and living expenses.

Receive Your Pre-Settlement Funding

Pre-settlement funding is an excellent way to receive the cash you need while you wait for the final verdict of your case. Many advantages come with utilizing this resource. For example, you can receive money fast once you receive your approval, and you can use the money for anything you need.

If you’re currently going through a lawsuit and need money to keep your head above water, you may want to consider using pre-settlement funding. Contact us at Legal-Bay for more information. We are here to answer any questions about the pre-settlement funding process.

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