How do you get approved for pre-settlement funding?
Pre-settlement funding is a risk-free “no win, no pay” type of loan that benefits consumers in the due event that their case is lost; they won’t be obliged to pay back the borrowed funds. On the other hand, this option is risky for lenders because they’re not secured by an underlying asset, meaning if you don’t win your case, we lose our investment in your case. This is why pre-settlement funding has higher interest rates than conventional loans. Applying for pre-settlement funding is typically pretty straightforward. But you might want to make sure you have your case in a row to help your chances of approval and qualifying for the best possible legal funding amount and interest rate. Although your needs may be different than other plaintiffs, you may want to learn if your claim can qualify for a pre-settlement cash advance. Here’s what getting approved for pre-settlement funding can look like:
First, figure out how much money you really need.
Plaintiffs involved in litigation need to make sure they are realistically estimating the amount required for their present situation. Financing your lawsuit settlement for more than you need might not be a great idea since you’ll be paying interest on the lump sum you take out once your claim is successfully concluded. It is best to borrow less than what you need; you can always apply for additional pre-settlement funds.
If you get approved, you might want to keep an eye out for any hidden fees. If you get charged a compounding fee, most likely, you’ll be paying hidden fees that could add up quickly. Factoring them in now might help you avoid any surprises when your lawsuit settles.
Evaluate your case before you apply.
Although many factors go into what a pre-settlement offer will be, you may want to speak to your attorney about helping you find a way to come up with an estimate of non-economic damages. This might be one of the main factors pre-settlement lending companies consider when considering you for a pre-settlement loan, so it’s good to know your case present estimated value before applying so you have a realistic expectation on how much you could get.
Applying for pre-settlement funding.
The first step into qualifying your case is to apply for the pre-settlement loan and provide the information requested about your legal claim and previous lawsuit loans (if applicable). Pre-settlement funding companies do not perform credit or job checks, so a bad credit score or unemployment should not stop you from applying.
To know if you could get approved, be honest about your case with yourself and the pre-settlement funding company, and ask them to help you find the right amount and the approximate interest rate that works for you. Most funders have similar requirements for documentation and claim qualification. You’ll often provide necessary information such as your full name, date of birth, address, accident details, and your attorney’s full contact information. You will also need to contact your attorney to permit them to communicate with our lawyers.
Most pre-settlement funding companies will pre-qualify your application within the first 5 minutes of your conversation with them. This process is crucial because it could give you an idea of how much money you could borrow from your settlement and what your interest rate could be. The types of lawsuits that qualify for pre-settlement funding are personal injuries, motor vehicle accidents, civil rights cases, employment lawsuits, and corporate cases.
In order to qualify for pre-settlement funding, you must also make sure your attorney fully collaborates with the funder. Without an attorney’s full co-operation, no lender will approve you for a lawsuit loan. Other qualification requirements include living in an eligible state, having a strong claim, you must be at least 18+ years old to apply, and the defendant must be insured.
Most lenders provide up to 10% of the current value of the expected settlement award. If your case is still pre-mature, the approval amount you get may be less than what you are expecting it to be. But this doesn’t mean that your final compensation amount is low; it just means that the value of your case is currently estimated at a certain dollar amount because it needs to grow. As you get more medical procedures or the defendant has been discovered to be well-insured and has accepted full liability, and as you get a settlement offer, your case could go up in value, and you can re-qualify to get additional money.
If you end up getting approved for pre-settlement funding, in order to get the money, you’ll need to sign the funding contract, followed by your attorney’s acknowledgment of the lie. Your attorney can also provide us with a LOP. Once we receive the completed documentation, you will need to submit things like a photo ID or a bank check or statement to verify the funds are going to you. If a check is preferred, it can be sent to your attorney’s office or you with proof of address. If you don’t have a bank account and proof of address, you will need to sign a legal document stating where you want the funds to go.
Qualify for pre-settlement funding.
If you’re on the hunt for pre-settlement funding, consider Baker Street Funding. Qualifying plaintiffs may be eligible for up to $750,000, depending on their case estimated value. The application process can be completed entirely online. There are absolutely no hidden fees or markups when you borrow money against your settlement from Baker Street Funding—no risk, no stress. If you unexpectedly lost your job, you have been injured and had surgery, have a strong case, and a contingency attorney is representing you, you could qualify for pre-settlement funding.
Case evaluation process.