How Do Litigation Loans Work?
When you’re hurt in an accident, your physical and emotional well-being aren’t the only things at play. The settlement process can drag on for months or years. Meanwhile, you need to pay your bills and ensure that other basic necessities are covered.
A litigation loan is a cash advance from your future settlement, to get you the money you need now. If you’re wondering if a lawsuit loan could work for you, read on.
Who Qualifies for a Litigation Loan?
Litigation loans can be received for almost any type of lawsuit. Regardless of the nature of your accident, you’re sure to be waiting for an undetermined period of time while your claim is processed and negotiated.
Life, however, doesn’t wait. That’s where pre settlement funding comes in. With the help of a non-recourse litigation loan, you can get your money sooner, rather than later—freeing you up to pay for groceries, medical bills, or whatever your most urgent expenses might be.
How Does Non-recourse Lending Differ from a Traditional Loan?
When you apply for a traditional loan, you are required to pay back the sum of the amount plus fees at a later date or over time. In a legal context, regular loans must be paid back no matter the outcome of your case—a reality that could saddle you with considerable debts.
Non-recourse lending, on the other hand, is a cash advance on your pending financial settlement. When your case is won or settled out of court, a percentage of your settlement—plus fees—goes back to your lender.
In other words, you pay only if you win, as you offer no collateral to a non-recourse lender. It’s a win-win for plaintiffs in a tough economic situation.
What Do I Have to Do to Get a Non-recourse Litigation Loan?
If you have an active lawsuit, you’re eligible to apply. Lenders will then evaluate your case to determine eligibility. In general, only strong cases will be approved for a litigation loan, as a stronger case means less risk for the lender.
Finally, you will need to retain the services of a lawyer who is able to sign finalizing documents for your case.
Find Out Whether a Litigation Loan Is Right for You
If your lawsuit is causing you to make difficult financial decisions, know that help is available. Money First Lending is passionate about providing citizens of Las Vegas with the economic relief they need during their pending litigation.
Why not speak with one of our lending professionals? Call 702-623-3333 or fill out the form on this page to schedule a no-hassle consultation.