How Is Pre-Settlement Legal Funding Different From Personal Loans?

When you are waiting weeks, months, or years for your personal injury lawsuit to settle or reach a conclusion in court, you have a variety of options to get the money you need to meet your daily expenses.

You might consider a personal loan, lawsuit loan, or cash advance, agreeing to terms that are unfavorable to you and may even leave you in a worse place, financially, than you were before you took out the loan.

The better choice is pre-settlement legal funding, available from authorized lenders like High Rise Financial. With better terms, non-recourse debt, no compound interest, and no monthly payments, pre-settlement legal funding far beats a personal loan. Plus, there is one crucial difference. Since your pre-settlement legal funding directly comes from the recovery your attorney gets for you in your lawsuit, it is not tied to your personal income. That means, if you don’t win your lawsuit, you don’t owe us anything!

If the idea of having more money now so that your attorney has time to make more money for you in the future sounds good to you, fill out the form on our Apply Now page to see if we can get you the funds you need.

Why Pre-Settlement Legal Funding Has No Risk

Personal loans are tied to your finances. That’s why you often have to provide data like proof of employment, annual salary, and credit history when applying for a personal loan.

On the other hand, pre-settlement legal funding requires none of those pieces of information. We don’t ask for tax records or any financial documents that are not directly related to your injury case. This might lead some people to wonder about the safety of pre-settlement legal funding, but in fact, this is a much safer method of borrowing than, say, lawsuit loans. According to the New York Times, lawsuit loans, just like risky personal loans, can leave you worse off than when you started.

To apply for free, call (877) 735-0016

Understanding Non-Recourse Funds

When you take out a personal loan, especially a lawsuit loan, you might sign up for more than you bargained for. Many of these loans are classified by the IRS as recourse loans, which means you are held personally liable for the entire debt. The lender can seize the collateral and still pursue further payment from you. That’s why some people end up without compensation, still making monthly payments out of their personal funds to pay back lawsuit loans.

To understand the difference between recourse lawsuit loans and non-recourse pre-settlement legal funding, consider a personal home loan.

1. You get a non-recourse loan from the bank to purchase your house.
2. Eventually, you default on the loan.
3. The bank takes your house as the collateral for the initial loan.
4. Unfortunately, the house’s value does not cover what you still owe for the loan.
5. The bank CANNOT take money out of your paycheck or pursue other avenues of debt collection. After they take the collateral, the repayment process is over.

The same principle applies to lawsuit lending. Since pre-settlement legal funding from High Rise Financial is non-recourse, the most you ever have to pay is the agreed-upon repayment amount out of your settlement package. If you lose the case and get no recovery, you don’t have to pay us back at all.

No Risk of Missed Payments

You get your pre-settlement legal funding quickly, sometimes in as little as 24 hours after you submit your application. You repay High Rise Financial out of your compensation package. Here’s how the process works:

• Your attorney gets a check for the compensation amount from the at-fault party.
• Your attorney sends us a check for the repayment amount.
• Your attorney then takes their lawyer’s fees out of the compensation check.
• You keep the rest of your deserved compensation!

Note that there are no monthly payments and you don’t even have to actually handle the check. We work directly with your attorney, so there is no risk of forgetting to budget for your payment.

No Compound Interest

The reason personal loans and lawsuit loans are often scary is that lenders have a tendency to charge high-interest rates that leave you paying back up to two or three times the amount you borrowed. High Rise Financial opts instead for a flat fee rather than compound interest. 

You’ll pay that same low, flat fee whether you’re taking out a Richmond pre-settlement loan or legal funding in any of the other communities we serve across the United States. That’s just another way we try to protect you, the borrower, from shady lending practices.

Complete a Free Application form now

Apply for FREE Today

Applying for pre-settlement legal funding from High Rise Financial is completely FREE, and there is no credit check involved. You don’t have to worry about any negative impact, and you could be approved for up to $250,000, depending on the facts of your case.

If you need money to tide you over while your lawsuit resolves, don’t trust your financial wellbeing to a personal loan or lawsuit loan. Fill out the form on our Apply Now page to see what we can do for you.

Have questions about the process? Call our team at (877) 823-4377 or email us through our contact page and we will help you.

Call or text (877) 735-0016 or fill out our form to apply today for free.