Lawsuit Loans and Settlement Loans – An Introduction
Sad to say that a great number of people find themselves in injury situations each day, and such injuries are turning into a common incident. People have different reasons for filing lawsuits, including those involving personal injury, Workers’ Compensation Act, sexual harassment, neglect, wrongful death, class action, etc. Many of the lawsuits often seem petty and quite often, they really are. However, one has to be mindful about making hasty conclusions that the case does not have sufficient merit just because there are some issues involved in the analysis of the case. Favorably for those people who sustain injuries, many of them are able to avail of financial assistance in the form of lawsuit loans and settlement funding to help them during very tough times.
What is a lawsuit loan? Quite simply, a group of investors that customarily comprised a lending company offers a loan against future claims. Thus, a plaintiff is usually able to get a cash advance against that case that they can use while the litigation is on-going. While it seems quite simple and easy, there are some nuances to the process which individuals, who want to avail of this assistance, should know. Thus, it becomes necessary that you seek out a lawsuit loan broker who can assist you throughout the entire process.
Lawsuit loans and settlement loans providers charge some necessary fees in light of the risks that they are taking when they release the cash to the plaintiffs in advance of a settlement. Sadly, many people incorrectly consider them to be interest rates. Settlement funding, however, has no real interest rates. The rates collected for granting the funds are called risk-fees. The fees are computed according to the amount of risks involved in winning that particular claim.
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There are no interest rates charged against these loans because they will not demand payment from a borrower who doesn’t receive a settlement. This is very helpful to people going through financial distress. As many of these people who sustain such injuries usually find their expenses quickly piling up and their ability to continue earning income during the recovery process is reduced to a great extent.
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What’s interesting about pre-settlement funding is that for people to qualify for such funding, their credit record is not important to the lending companies. They give more attention on the lawsuit to be decided instead of the applicant.
Take note though that plaintiffs are unable to secure lawsuit loans and pre-settlement loans unless they have a licensed attorney working with them. So it is essential for these individuals to employ a competent lawyer who can work closely with these lending companies and to facilitate prompt processing of their claims. Any delays in obtaining documents are going to delay funding to a considerable extent. Additionally, the delays will very likely to eliminate the chance for the applicant to obtain the greatly needed litigation money altogether.