Pre-settlement lawsuit loans

A settlement advance is the financial backing provided to plaintiffs with pending claims and in need of immediate cash. Settlement loans or advances are commonly used terms to describe settlement funding. A pre-settlement cash advance is non-recourse and is not a loan because the lender does not base the advancement on credit scores, employment status, or assets. This type of financing is called non-recourse because you don’t have to pay back the funds if you don’t win your case. All funding provided is free of any risk, and the advance funds will be based only on the value the pre-settlement advance company gives your case. 

Non-recourse lawsuit loans or plaintiff loans are essentially loans from a lawsuit settlement funding company that are not backed by asset, such as your home, bank account balances, or car title. To have a loan “backed” by an asset means that a financial institution has the right to take that asset in the event that you cannot pay the loan; therefore they are viewed as less risky by lenders, and have much lower rates.

On the other hand, non-recourse lawsuit loans are not backed by any of these recourses, and tend to have higher interest rates (depending on the company) than traditional loans. 

Some lawsuit lenders, like Baker Street Funding, offer low, fair-rate, non-recourse funding which may be used for a variety of purposes—like paying off household debt or medical bills.

Non-recourse lawsuit loans or plaintiff loans are essentia

Plaintiffs who need to borrow money against their settlement should learn what the types of lawsuit funding solutions are, and decide whether it is something to consider. Legal funders generally offer two types of settlement funding programs to plaintiffs involved in civil lawsuits. These services are pre and post-settlement funding.

Pre-settlement funding: Simply put, a pre-settlement advance is a cash advance in the form of a check or a wire, provided to victims with unsettled lawsuits, and the award amount of the claim is unknown. They carry higher interest rates than post-settlement funding (settled cases) because of the extra risk involved in pre-settled cases, meaning, no-win, no-pay.

Post-settlement funding: Post-settlement funding companies also provide financing for settled cases, but the victim has not received payment yet. While there is a lower risk for the plaintiff, this type of loan carries a high risk to the loan institution because there is still a chance that the defendant can default on the judgment and not pay.

lly loans from a lawsuit settlement funding company that are not backed by recourse. These types of loans are not backed by an asset such as your home, bank account balances, or car title. To have a loan “backed” by an asset means that a financial institution has the right to take that asset in the event that you cannot pay the loan against your settlement award.

When loans are viewed as less risky by lenders, they will have much lower rates.  Non-recourse lawsuit loans on the other hand are not backed by recourses. Therefore, they have higher interest rates (depending on the company) than traditional loans.

Some lawsuit lenders, like Baker Street Funding, offer low, fair-rate, non-recourse funding which may be used for a variety of purposes—like paying off debt or medical bills.

Pre-settlement funding companies offer plaintiffs the freedom to secure cash against their expected compensation. See what you need to do, before you apply for settlement financing:

1. Traditional bank lending: Bank loans are alternatives to lawsuit financing; the problem is you can’t access it with bad credit, no job history, or a large amount of outstanding debt. You also cannot access if you had a bankruptcy recently, and other hindrances.
2. Leveraging assets: It would be good to know that you can also leverage an asset such as a home, an automobile.
3. Borrow money: Before getting a loan from your lawsuit, try to borrow money from family members and/or friends.

If you have exhausted your financial options, then your only other option might be to apply for a loan against your lawsuit. Lawsuit loans companies view your expected settlement proceeds as collateral. Your approval chances for a lawsuit loan are strictly based on your case’s merits and your ability to win the case. A pre-settlement loan company could help you get the money you need while you litigate your claim for a well-valued award.

Non-recourse cash advances serve the needs of plaintiffs that are having money problems while waiting for their cases to conclude. Here are some reasons to consider an advance against your litigation:

1. Facing eviction or foreclosure.
2. Purchase or lease a vehicle to get to work.
3. Keep your small business afloat.
4. Need the money to finish a college degree or professional training.
5. Need money for your children’s education.
6. Supplement disability payments.
7. Improve credit score by paying down bills.
8. Resolve claims against you by collection agencies.

It’s important to thoroughly assess your entire financial picture before taking out a loan against your pending lawsuit. Once you’ve made the decision that you would like to apply for a lawsuit loan, be sure to select a trustworthy pre-settlement funding company to work with.

Many times, when victims are in the middle of a lawsuit, they run out of financial options to support themselves so they can keep their cases moving forward. Settlement loans are resources that help claimants support themselves while the lawsuit goes to trial or a better payment is awarded. Pre-settlement financing can be a great tool to help you fight for a better award so you don’t settle for a lowball amount. Acquiring the pre-settlement funds you need enables you to effectively deal with the defendant’s delays, allowing you to wait for fair compensation so your attorney can negotiate a better offer.

Lawsuit financing could be useful as long as you understand the rate is fair for the risk that lawsuit loan companies take. This type of financing is extremely popular with personal injury victims who find themselves injured while their case is being litigated and can be beneficial in personal injury cases where severely hurt victims cannot work during the court process.  For example, a medical malpractice victim who finds himself hurt and out of work will seek financial relief due to the sustained injuries that have caused him or her an economic fall.

Lawsuit loan companies use certain prerequisites before approving a loan. Please be advised that, depending on your case, more or less may be needed to qualify. Most lawsuit funding companies require:

• An attorney’s representation.
• The case must be solid and have a high probability of winning it.
• For settled lawsuits, a minimum award of $50,000 is required for funding.
• Your attorney’s co-operation is a must. Without it, we cannot fund your case.

To see if you are eligible, please fill out an application online or over the phone at (888) 711-3599. 

Baker Street Funding understands the financial pressures victims go through during litigation and do our best to provide cost-friendly solutions. We are committed to offering quick financing for plaintiffs involved in most personal injury, employment, and civil rights claims. If you don’t see your case type below, please call us at (888) 711-3599 to see how we can help you. See some of the cases we mostly fund:

Baker Street Funding funds in most states of North America depending on state law.