Have you ever been in a situation where you needed money, but your bank wouldn’t give you a loan? If so, then you may want to consider pre-settlement funding. Pre-settlement funding is a type of loan that is designed to help people who are involved in pending lawsuits.
Here at Certified Legal Funding, we specialize in helping plaintiffs secure the money they need to cover their medical bills, living expenses, mortgage, and any other expense while they wait for their settlement. In this blog post, we will discuss how pre-settlement funding works and the main differences between bank loans and pre-settlement funding.
How it works
Pre-settlement funding is a type of loan that is designed to help people who are involved in pending lawsuits. The loans are typically given to plaintiffs who have strong cases, but need money to pay for living expenses or other costs associated with their case. When you receive pre-settlement funding, you are essentially selling a portion of your future settlement or verdict to the funding company. In exchange for the loan, the funding company will usually take a percentage of your future settlement or verdict.
Differences between bank loans and pre-settlement funding
The main difference between pre-settlement funding and bank loans is that pre-settlement funding does not require any type of collateral. Collateral is something of value (such as a car or house) that is used to secure a loan. If you default on the loan, the lender can take your collateral. With pre-settlement funding, there is no collateral required. This is because the funding company is loaning you money based on the strength of your case.
Another difference between pre-settlement funding and bank loans is that pre-settlement funding companies do not require you to make any monthly payments. With a bank loan, you typically have to make monthly payments until the loan is paid off. With pre-settlement funding, there are no monthly payments required. Instead, the funding company will wait until your case settles or goes to trial. Once your case settles or goes to trial, the funding company will receive a percentage of your settlement or verdict.
The final difference between pre-settlement funding and bank loans is that pre-settlement funding companies typically do not require a credit check. A credit check is when a lender checks your credit score to see if you are a good candidate for a loan. With pre-settlement funding, your credit score does not matter. This is because the funding company is loaning you money based on the strength of your case, not your credit score.
Now that we’ve discussed how pre-settlement funding works and the main differences between bank loans and pre-settlement funding, you may be wondering if pre-settlement funding is right for you. If you need money to pay for living expenses or other costs associated with your pending lawsuit, then pre-settlement funding may be a good option for you.
Contact Certified Legal Funding today to learn more about how pre-settlement funding can help you. By providing you with pre-settlement funding, we can help you regain your financial freedom without going into debt and worrying about making the monthly payments on time.
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