Many people in a lawsuit may not know what about pre-settlement funding loans. This could be important, especially to anyone who is out of work and needs access to cash right away. Pre-settlement funding may be what you need while you are waiting for the settlement results. These loans can be great for people waiting on a settlement. We all know the wheels of justice take time to spin. You don’t have to wait for your money.
Pre-Settlement Funding Loans
You may or may not have heard about these. Pre-settlement funding loans are advances given to plaintiffs before a settlement gets reached. This can pay for expenses that may arise during the case or to pay bills while a settlement is being reached. Lawsuits can take a lot of time and they can be expensive. Even after a settlement is reached it takes time to receive any money. If you are the plaintiff who is awarded money it can be hard to wait due to financial strain and bills that have mounted up during the case.
This is where pre-settlement funding loans can help. They bridge the gap between the time it takes to go through a case and receive money from the settlement. This may reduce the stress a plaintiff feels while waiting on a settlement.
How It Works
Companies advance money to you based on documentation from the court or medical services. You will agree to an amount and will pay interest on the pre-settlement funding loan. If you win your case, you pay the amount advanced plus the interest on the loan, but if you lose your case, you often will not owe anything. There is usually little to no risk to you as long as you know you can pay the interest rate charged. Some people prefer to wait for their settlement so they do not have to pay interest but this takes time.
If you need money now, pre-settlement funding is a good option. You can find out more about the process at https://floridasettlementfunding.com/.
Is It Right for You?
Some people may not want to consider this type of advance because they think the fees and interest are too large. Sometimes these types of loans are not regulated so that leaves the interest rate charges and other fees up to the company. This means the government is not putting a cap or fixed amount on how much the company can charge you. The interest rates could be as much as they decide.
What you need to know is what will be charged upfront for the service and what the interest charged will be. Then you can make an informed decision on what you want to do. This type of service is not for everyone and many think it costs too much. If you find yourself in a bind waiting on your money, pre-settlement funding loans may be a good option for you. The advance is usually quick to arrive and can help pay expenses while you wait for the settlement. Follow us for more tips!