Pre-settlement funding, also known as lawsuit funding or legal funding, is a type of financial assistance that helps plaintiffs cover expenses while they wait for their personal injury case to settle or go to trial.
Here at Certified Legal Funding, we specilize in helping plaintiffs regain their financial freedom while they wait for their settlement money. In this blog post, we’ll explore what pre-settlement funding is, the differences between bank loans and pre-settlement funding, and who qualifies for pre-settlement funding.
What is pre-settlement funding?
First, let’s define what pre-settlement funding is. Pre-settlement funding is a non-recourse cash advance that is provided to plaintiffs in personal injury cases. This means that the plaintiff is not required to pay back the funding if they do not win their case. The funding is provided in exchange for a percentage of the plaintiff’s potential settlement or award. This percentage is agreed upon upfront.
The difference between pre-settlement funding and bank loans
Now, let’s explore the differences between bank loans and pre-settlement funding.
- Credit score requirements: In order to qualify for a bank loan, you typically need to have a good credit score. This is not the case with pre-settlement funding. In fact, many plaintiffs who apply for pre-settlement funding have bad credit or no credit at all.
- Collateral: With a bank loan, you will typically need to provide collateral, such as a car or a house. With pre-settlement funding, there is no need for collateral as the funding is non-recourse.
- Repayment: With a bank loan, you will be required to make monthly payments, regardless of whether you win your case or not. With pre-settlement funding, repayment is only required if you win your case.
- Timeframe: Bank loans typically have a set repayment term, usually a few years. With pre-settlement funding, the timeframe is based on the length of the legal process and the outcome of the case.
Do I qualify for pre-settlement funding?
So, who qualifies for pre-settlement funding? Generally, plaintiffs in personal injury cases who have a strong case and are represented by an attorney are eligible for pre-settlement funding. This includes cases involving car accidents, medical malpractice, slip and fall accidents, and more.
It’s important to note that pre-settlement funding is not for everyone and it’s important to carefully consider the terms and conditions before applying. If you are thinking about applying for pre-settlement funding, we invite you to contact Certified Legal Funding for more information and to see if you qualify. We are a leader in the pre-settlement funding industry and can provide you with all the information you need to make an informed decision.
In conclusion, pre-settlement funding is a valuable option for plaintiffs in personal injury cases who need financial assistance while they wait for their case to settle or go to trial. It’s important to understand the differences between bank loans and pre-settlement funding, and who qualifies for pre-settlement funding, so if you are considering pre-settlement funding, we invite you to contact Certified Legal Funding for more information.