When someone suffers a personal injury, it can affect every aspect of their life. Not only do they have to deal with the physical and emotional pain of the injury itself, but they also have to worry about how they will pay for medical bills and other expenses. This is where pre-settlement funding can help.
Pre-settlement funding is a type of loan that provides money to injured victims before they reach a settlement in their case. In this blog post, we will discuss five differences between bank loans and pre-settlement funding. We will also answer some common questions about pre-settlement funding. If you are considering applying for pre-settlement funding, please feel free to contact us at Certified Legal Funding!
Differences between bank loans and pre-settlement funding
One of the biggest differences between bank loans and pre-settlement funding is the application process. When you apply for a bank loan, the lender will usually require a lot of documentation, including tax returns, pay stubs, and bank statements. The application process can be time-consuming and complicated. With pre-settlement funding, there is no lengthy application process. We simply need some basic information about your case, and we can usually give you a decision within 24 hours.
Another difference between bank loans and pre-settlement funding is the interest rate. Bank loans typically have much higher interest rates than pre-settlement funding. This is because banks are for-profit organizations that need to make money off of their loans. Pre-settlement funding companies, on the other hand, are not-for-profits. We do not charge interest on our loans because we only get paid if and when you win your case.
The third difference between bank loans and pre-settlement funding is the repayment schedule. With a bank loan, you typically have to start making payments right away, even if your case is still ongoing. This can be difficult for injury victims who are already struggling to pay their bills. With pre-settlement funding, you do not have to make any payments until your case is settled. At that time, you will simply repay the amount of money that you received from us plus a small success fee.
Fourth, collateral is usually required for a bank loan but not for pre-settlement funding. This means that if you take out a bank loan and are unable to repay it, the bank can take your collateral (usually your home or car) in order to recoup their losses. With pre-settlement funding, there is no collateral required.
Finally, the fifth difference between bank loans and pre-settlement funding is that pre-settlement funding is non-recourse. This means that if you receive pre-settlement funding and then lose your case, you do not have to repay the money. You are only responsible for repaying the money if you win your case and receive a settlement.
Contact us today
If you have been injured in an accident and are considering applying for pre-settlement funding, we hope that this blog post has been helpful. If you have any further questions, please do not hesitate to contact us at Certified Legal Funding. We would be more than happy to help you!