Most legal advisors counsel their clients to never take a low settlement without a full understanding of the financial consequences of such a low award. But, in many cases plaintiffs are so stressed and mentally tortured by the financial situation they are in, they have no choice but to either drop the case or take a low settlement.
Lawsuit loans, especially for car accident cases, have been growing in popularity in recent years. They are often chosen by plaintiffs to avoid the financial consequences of settling their case too early in the process, so a higher settlement might be awarded.
Taking out a settlement loan
Pre-settlement funding or what is often referred to as a lawsuit loan is not provided by a bank or regular loan company. These types of funds are provided by a litigation finance company whose only role is only to fund lawsuits for plaintiffs.
Pre-settlement funding is usually sought when dealing with a personal injury lawsuit that will take a long time to settle. Many times those plaintiffs who have filed a lawsuit are out of work due to their injuries, have high medical expenses, and other expenses (housing, car, other loans) and are starting to get hassled by credit collection agencies.
Finding the right company
As their attorney, your clients will look to you to recommend several reputable lawsuit pre- settlement funding companies. You’ll want to do your research and find the company that will give your clients a fair agreement with reasonable costs to borrow the money.
Alliance Claim Funding, LLC advances funds to plaintiffs pursuing all types of damage claims; in return, securing a portion of the proceeds that may flow from successful case settlements. Our rates are reasonable and we have an experienced team to handle all aspects of the paperwork your client will need to get their funding.
One big difference between this type of funding and a regular loan, if the case does not settle prior to trial or loses the trial – the lawsuit loan is forgiven! You owe Alliance Claim Funding nothing!
How does it work?
While there are fees involved with this type of loan, this funding can make a huge difference in your client’s ability to continue the lawsuit. Many plaintiffs are forced to pull out early or to settle their lawsuit for far less than the lawsuit is worth.
We will review the lawsuit with you to determine if funding is possible. Unlike most loans your client may take out during their life, there is no need for credit checks, employment verification, or collateral as this loan is based only on the merits of the lawsuit and the perceived settlement amount.
Also, unlike a regular bank loan there are no monthly payments for your client to worry about. The loan plus interest is repaid when the lawsuit is settled.
How long will it take?
In most cases, your client will have cash within 48 hours.
To learn how a lawsuit loan can help get you emergency cash for your client – give us a call, toll free, at 888-732-3389 or complete the contact form on the left.
We will work with you to obtain specific documentation about we will need to fund your client’s cash advance. Once the paperwork is in order, it takes only a few days to get approval and for your client to receive their legal funding cash advance.