A loan gives you a set amount of money that you will need to repay with interest over a designated period of time. Litigation finance options are available that represent viable alternatives to loans. They allow you to borrow money based on a pending personal injury lawsuit settlement.
At High Rise Financial, we offer pre-settlement legal funding to those involved in personal injury lawsuits. To learn more about our pre-settlement funding, get in touch with us today. In the meantime, we have answers to some of the most common questions surrounding loans and litigation finance options and how they are different.
In This Article
What Is a Loan?
A loan is a form of credit. You can request a loan from a bank or credit union. If you receive one, a bank or credit provides you with money that you will repay with interest over a set period of time.
The loan amount and interest rate you receive vary based on the financial institution, your credit score, and other factors. If you are looking for a loan, you can shop around at financial institutions. This helps you find a loan with an interest rate and other terms and conditions that line up with your budget.
You can request a loan at any time, but there is no guarantee that you will receive one. A bank or credit union may request collateral or ask you to have someone cosign for your loan if it has concerns about the risk it is taking by granting you a loan. Or, a financial institution may charge you a high-interest rate.
To apply for free, call (877) 735-0016
What Litigation Finance Options Are Available?
Lawsuit loans, also called pre-settlement loans, are popular litigation finance options. With a lawsuit loan, a lender gives you money while you are in the middle of a personal injury lawsuit. The lender determines how much to provide you based on your projected settlement amount, the strength of your case, and other factors.
Pre-settlement loans do not work in the same way as traditional ones available from banks and credit unions. With a pre-settlement loan, you do not need to complete a lengthy application process or provide information about your credit or financial history. Also, if you lose your personal injury lawsuit, you are under no obligation to repay your pre-settlement funding.
You can ask for a lawsuit loan during many types of personal injury cases. To find out if you qualify for one, it pays to reach out to a lawsuit loan company. Then, you can provide the company with information about your case, and the business can let you know if you are a good candidate for pre-settlement funding.
What Are the Requirements to Get a Loan?
To receive a loan from a bank or credit union, you will need to provide several pieces of information, including:
- Details about your credit score and financial history
- Pay stubs
- A signed letter from your employer(s)
- Tax forms
It can take a bank or credit union days or weeks to review this information in conjunction with your loan application. If a bank or credit union finds you are a viable candidate for a loan, it will offer one to you. At this point, the financial institution will provide you with information about the loan it can provide, its interest rate, and all other terms and conditions.
If you get a loan quote from a bank or credit union, review it carefully. In some instances, a loan can inadvertently do more harm than good, particularly if you are requesting one while you are involved in a personal injury case. Conversely, you can ask for pre-settlement funding, which may prove to be a great alternative to a standard loan.
What Are the Requirements to Get a Pre-Settlement Loan?
To get a pre-settlement loan, you must be:
- Involved in a valid personal injury lawsuit
- Eligible for pre-settlement funding in your state
- Represented by an attorney
If you meet these requirements and want to pursue a lawsuit loan, you can do so immediately. You can reach out to a pre-settlement funding company that can answer any questions you have about lawsuit loans. From here, you can submit a lawsuit loan application.
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How Long Will It Take Me to Get a Loan or Pre-Settlement Funding?
The time it takes to get a traditional loan depends on the bank or credit union. For example, a bank or credit union may receive many loan requests at once. In this scenario, it may take the financial institution longer to process your loan application than it would at other times.
Comparatively, you can get approved for a pre-settlement loan within 24 to 48 hours. Since there are fewer requirements to obtain pre-settlement funding in contrast to a traditional loan, you are more likely to get a quick response to your request for legal funding. If you accept a pre-settlement funding quote, you can receive your money in a matter of days.
With a pre-settlement loan, you are not required to repay it until your case is closed, too. If you settle or win your case, your lawyer submits a payment to the lawsuit loan company for you. On the other hand, if you lose your case, you are not responsible for paying back your lawsuit loan.
Which Is Better: a Traditional Loan or Pre-Settlement Funding?
You can request a traditional loan, pre-settlement funding, or both. When you do, you may quickly discover that there is a lot to like about pre-settlement loans over traditional ones. Common reasons why people choose to get a pre-settlement loan include:
- Fast Approval: You can find out if your pre-settlement legal funding request is approved in less time than what is usually required for a traditional loan.
- Accessibility: You may qualify for a lawsuit loan, even if you have a low credit score.
- No Risk: You are only required to pay back your pre-settlement funding if your personal injury lawsuit is successful.
At High Rise Financial, our team is available to teach you about lawsuit loans and help you apply for pre-settlement funding. To learn more, please contact us today.
Call or text (877) 735-0016 or fill out our form to apply today for free.