About 80 to 92 percent of personal injury cases settle before going to trial. Plaintiffs that choose to go to trial made the wrong decision 61 percent of the time. They could have gotten more if they agreed to settle.
One of the biggest hurdles that plaintiffs have to overcome is funding their lawsuit while also paying for living expenses and medical care. This can be exacerbated by an inability to work.
Settlement loans are a possible answer. Lawsuit funding lets you effectively pursue your personal injury lawsuit while also satisfying your financial responsibilities.
How to Fund a Lawsuit
The simplest method for funding a lawsuit is to pay out of pocket. However, not everyone has tens of thousands of dollars to spend on a lawsuit.
A modern trend is to utilize pre-settlement funding. This lets you finance your lawsuit with an immediate cash flow. You can use the money you get from the settlement loan to pay for your lawsuit, living expenses, or medical treatment.
How a Settlement Loan Works
To use a settlement loan for your lawsuit, you’ll start by filing your lawsuit. You cannot get approved for this type of loan without a lawsuit in the works. Lenders that deal in these types of loans will have an online form that you can easily fill out.
The application will ask for your information, lawsuit details, and the amount you’re looking to borrow. The lender will determine what it thinks you can reasonably expect to receive and approve you for a loan that’s a portion of this total amount.
Benefits of Settlement Loans
Unlike other loans, lenders are less concerned with your credit score and history. This is because the lender knows you have a settlement coming that will enable you to pay the loan back.
You can also get your funding money quickly, which can allow you to feel immediate relief. Once you have your loan funding, you can use this to hold out during negotiations for a larger settlement.
While you could seek out other funding for your loan, they present a risk. You’ll have to repay the loan even if you lose the case.
This isn’t the case with a settlement loan. Many lenders don’t require repayment if you lose your case.
Settlement Loan Drawbacks
These loans have higher interest rates, which can make them more expensive than other options. However, you can find options that do not incur interest while your settlement is pending.
You should shop around and get several quotes before settling on a lender. Research possible lenders to narrow down your options to only those that are reputable with a strong track record of borrower satisfaction.
Apply for Settlement Funding
If you’ve been injured and are pursuing a lawsuit, then you may find your financial situation getting tight. Settlement loans can provide you with immediate relief. This removes some of the stress you’re feeling, allowing you to focus on your lawsuit.
You’ll be able to make strategic decisions that are in the best interest of your case and not based on financial pressure or desperation.
Check our other business articles for more helpful financial advice and planning tools.