There is often confusion when it comes to understanding pre-settlement funding and what it entails. Some often mistake it for a loan, but this is not the case. Pre settlement funding usually comes in the form of non-recourse cash advances, and is generally provided to the injured party in return for the promise to pay the advance after the lawsuit settles.
For example, if you are involved in a traffic accident where the other party is obviously fully at fault, you would likely be a great candidate for pre-settlement funding. Since the lengthy process of accidents, claims and lawsuits can sometimes take a great deal of time, having cash on hand is important. Whether you need cash for medical bills, daily survival or other needs, it is definitely something to consider when facing this type of situation.
Based on the information provided by the customer or their lawyer, the cash advance company then creates an estimate based on what the likely settlement value will be, and offers the cash advance based on that specific estimate. Most of these advances are generally offered as non-recourse funding, which means that the injured party has no obligation to repay the advance if the lawsuit is lost.
Litigation can often take quite a long time, sometimes years and years; it often becomes necessary to seek out a cash advance of sorts. This is especially important if the party is injured, since this could mean lost time from work. When you are dealing with an injury and unable to come up with the financial means for treating the injury while litigation takes place, then take a look into pre-settlement funding to give yourself a better chance.
Accidents can oftentimes leave people more than just physically injured; in many cases people are unable to work and pay their bills as a result. Accidents that end up going into litigation leave people in very tough financial positions. Many people only think of the court and legal costs, but fail to factor in everyday expenses such as house payments and grocery bills, not to mention any medical care or equipment that they might need.
When you’re unable to work and earn a paycheck, how are you supposed to make ends meet while you wait for your settlement? Looking into a pre-settlement advance is a great way to stay on your feet while waiting for litigation to end.
Why Consider an Advance?
We are very used to working with people who know they have money coming once their case settles, but need to find a way to handle expenses in the meantime. We have even helped people facing foreclosures on their homes because of missed mortgage payments. Imagine the agony of losing your home as a result of an accident that was someone else’s fault!
Let’s face it — in the current economy, most Americans don’t have enough in savings to live off of in the event of an accident. An advance is a great way to have early access to funds that you know are coming so that you can resume your normal life.
Pre-settlement advances are also a good way to avoid having to settle for less than you deserve in a case. Many people who are having trouble paying for legal proceedings and common expenses have been known to quit early and take whatever they can get. However, many of these same people are entitled to a lot more than they are receiving on such a deal. A cash advance will ensure that the person can afford to stay until the end and receive full recompense.
Don’t let an accident paralyze your life more than it already has. Take the steps to keep your finances on track so that once you receive your settlement, you won’t have to rebuild your life. The amount of time it takes for a case to settle is often out of your hands, but you can take control of the situation by considering a pre-settlement advance.