Who Qualifies for a Cash Advance on a Settlement?
If you’re waiting around for lawsuit or settlement money to come to you, then you might be wondering if you can get a cash advance on a settlement.
When it comes to lawsuits and settlements there are many different aspects to think about. You may be wondering about your settlement amount and how much you’ll have to pay in taxes on your settlement.
One thing that is common when you go through a lawsuit or settlement is you have to wait to actually receive your money. If you were in a personal injury lawsuit or a class action lawsuit the time spent waiting could be months.
Yet, there is a short-term solution that you could consider if you need money now. A cash advance on a settlement could be the answer to your problem. As with anything you want to make sure a settlement cash advance is right for you.
Here are a few things to keep in mind as you decide on getting a cash advance on a settlement.
What Is a Cash Advance on a Settlement?
A cash advance on a settlement is a short-term loan or advance funding on a future judgment for a lawsuit or settlement award. Also known as a lawsuit loan or pre-settlement funding, they are very similar to traditional cash advances on credit cards.
Since a cash advance on a settlement is a loan you will be responsible for paying back the money you borrowed. That will also include any interest accrued from borrowing the loan. The good thing is once the money from your lawsuit or settlement is paid you can pay back the loan.
You are able to take out a settlement loan only after filing a lawsuit that is considered eligible. It is important to know that while a cash advance on a settlement is a loan it isn’t like a traditional loan based on your credit.
The amount that you can receive will depend on a few different factors. One of those factors is your settlement amount. The lender of a settlement loan will also examine the merit of your lawsuit. They use internal processes to determine the likelihood of you winning your case or your case settling.
Once all that information is gathered they may offer you a cash advance. Traditionally you don’t have to make payments on a settlement cash advance until you’ve settled your case or received a judgment in a lawsuit.
Types of Lawsuits Eligible for a Cash Advance
There are some common causes that are eligible for a lawsuit loan. For example, a personal injury lawsuit such as an auto accident or a bicycle accident would qualify.
Work-related lawsuits are eligible as well. This would include worker’s compensation claims or injuries that happened in the work. There are a few other lawsuits that would qualify such as slip and fall accidents, or medical malpractice.
If someone’s dog bit you and you had to file a lawsuit against them you would be eligible for a cash advance. Anytime your case involves a faulty product or a wrongful death, you could get an advance on your settlement.
The Pros of a Cash Advance on a Settlement
As you consider getting a cash advance on a settlement you want to think about the pros. The first benefit of this type of loan is you will get money for your everyday expenses.
If your lawsuit has caused you to be out of work, your normal living expenses can add up quickly. A cash advance on your settlement will help you take care of your bills until your case is settled or you receive judgment.
Another pro for using advance lawsuit money is the turn around time on disbursement is fairly quick. Depending on the factors of your lawsuit your cash advance can be approved in days. Some lenders can even approve your loan in a matter of hours.
One last pro you can benefit from when using advance settlement money is your credit isn’t a primary factor. Depending on the lender who provides your cash advance they may not even use your credit at all as a deciding factor.
The Cons of a Cash Advance on a Settlement
Know that you understand the pros of getting a cash advance on a settlement you should also consider the cons. One of the biggest drawbacks to this type of funding is the high-interest rates.
It is common for a settlement loan to have interest rates as high as 60 percent. This can put a significant dent in your award amount. Once your case is settled you have to pay your attorney, other ligation expenses, and your loan.
Another con is unlike traditional loans there isn’t much regulation around settlement loans. There are extensive regulations and consumer protections in place for a regularly funded loan.
One of the biggest differences in a lawsuit loan is it’s up to the state to regulate them. Since each state has different rules it can be difficult to understand if you are protected. A good rule of thumb to find out if your settlement loan has any protection is to contact your state’s attorney general’s office.
Other Things to Consider When Getting a Cash Advance on a Settlement
When looking to get a cash advance on a settlement finding a reputable lender is highly important. All lenders aren’t the same. There are some reputable lawsuit loan lenders like Legal Bay Lawsuit Funding LLC.
Yet, there are also lenders who are looking to take advantage of consumers in a difficult situation. Consider doing some research before choosing a company to get advance settlement money from.
Another thing to consider when deciding on getting a cash advance is the length of a lawsuit. Sometimes it may be years before a settlement is reached. If you do get a lawsuit loan that means you will have to pay interest and possibly other fees before you receive your money.
Do You Need Money From Your Settlement Now?
Waiting on your lawsuit or settlement payments can be difficult. But, it’s always great to know that you have options. If you believe a cash advancement on a settlement is the right choice for you we can help.
We have an excellent rating on Trustpilot for helping families fund their lawsuits settlement loans. Don’t wait for your cash another day. Contact us now to get started!