Did you know that there are around 6 million car accidents in the United States every year? If you were recently in a car accident yourself or slipped at a store and got injured and are now in the process of litigation but are having a difficult time covering your expenses, we are here to share the ins and outs of taking out a settlement loan. We have put together this short guide to share how settlement loans work before you apply for one.
Keep reading to become familiar with everything that settlement funding entails.
How Do They Work?
These types of loans work for anyone that is in the middle of a lawsuit due to an injury but has yet to receive any money from the lawsuit. This type of loan will help you cover your living expenses while your case is pending. In lamest terms, a lawsuit funding company will give you a cash advance on the settlement that you expect to receive once your case is finalized.
You can only apply for this type of loan after you have filed an eligible lawsuit. Once you apply the company will evaluate your case and weigh your chances of winning and how much they believe you will receive before offering you an advance.
If they approve you they will tack on their fees and interest that you must pay back along with the money they lent you once you receive your settlement. If you are wondering where to find a settlement loan to evaluate your case you can visit this site that makes a decision rather quickly instead of making you wait.
What If I Lose the Case?
The answer is it all depends on your agreement. Some companies do not make you repay the advance if you lose your case because they can’t recoup the pre-funded amount unless you win. Part of their business structure is a risk of loss.
If you win your case but you end up receiving less than expected then in some cases the lender can’t demand the difference. They would just receive whatever you received plus the fees and interest they charged you when you first received your advance.
One of the main benefits is that you will have the cash to help cover necessary living expenses while you can’t work. Another benefit is that you usually receive the money pretty quickly via direct deposit which means you are not waiting for weeks to get your money to catch up with your bills.
Feeling Like a Settlement Loan Pro?
We hope that now that you learned the ins and outs of a settlement loan, you are feeling knowledgeable enough to make an informed decision on whether a settlement loan is right for you or not.
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