Is Settlement Funding Safe?
When it comes to the safety of settlement funding, misconceptions abound. It’s understandable: accident victims with already difficult financial situations are worried about the possibility of taking on debt or having to pay back a traditional loan.
Settlement funding, however, is different from a traditional loan and poses minimal risk for your long-term finances. If you’re concerned about covering your basic expenses while you wait for a financial settlement, read on to understand the benefits of settlement funding.
The Basics of Settlement Funding
In contrast with a traditional loan, settlement funding is a non-recourse financial instrument that grants victims a cash advance from their future financial settlement.
Traditional loans require repayment with interest regardless of the outcome of your case. Settlement funding, on the other hand, is granted on a case-by-case basis based on the facts of your claim.
If you lose, you owe nothing—this is what the non-recourse part means. Pre settlement funding puts money in your pocket now, when you need it most—without the risk of taking on a traditional loan to cover your expenses during the course of a lengthy financial settlement.
What Can I Use My Settlement Funding For?
Because the risk associated with settlement funding belongs entirely to the lender, the unique facts of your case will determine eligibility. One approved, however, the money is yours to use as you see fit.
Many plaintiffs use their settlement funding to pay for things such as rent, food, and medical bills.
Is Settlement Funding Regulated?
In the past, critics of settlement funding pointed to inconsistencies in regulation to deter potential recipients. Nowadays, settlement funding is a highly regulated financial tool with lenders that observe industry best practices.
How Will I Pay Back My Settlement Funding?
With settlement funding, you get your money now, when you need it. Once your case is decided in court or a settlement deal is reached with an insurance company, your attorney’s fees and settlement funding plus fees will be deducted. The rest is yours to keep.
If you lose, you owe nothing, which makes settlement funding the safest way to cover those urgent costs you have now without it impacting your future finances.
Although other lenders might charge an annual interest rate, we opt for a flat fee to make the client-lender relationship as transparent as possible.
Find Out Whether Settlement Funding Is Right for You
With settlement funding, there’s no reason to choose between paying your bills and taking care of yourself and your loved ones. Money First Lending is committed to providing financial relief to Las Vegas residents that helps them during the life of the settlement process.
Ready to apply? Call 702-623-3333 for a free case evaluation, or fill out the form on this page.