What’s the Difference Between Non-Recourse Loans and Pre-Settlement Legal Funding?

There are a ton of options on the market for a borrower in need of extra cash. Some, like lawsuit loans or risky cash advances, are designed to help the lender rather than the borrower. However, non-recourse loans come with restrictions that make them safer for you.

Pre-settlement legal funding is a form of non-recourse debt, but there is one significant difference: in order to get pre-settlement legal funding, you have to be in the midst of a valid lawsuit. If you have a personal injury lawsuit in the works and are waiting through the long negotiation period or an extended trial proceeding, you may need cash now. High Rise Financial offers pre-settlement legal funding for people in your position. 

Our underwriters will analyze your application and have money in your bank account in as little as 24 hours. Fill out the form on our Apply Now page to get started.

What Are Lawsuit Loans?

When an individual or a corporation is dealing with a legal issue of any kind, and they are awaiting settlement funds, they may be able to access a portion of this funding through a lawsuit. If you have suffered an injury or are dealing with another type of civil case or insurance claim, you may be having financial difficulties while you wait for your money to come in.

By obtaining pre-settlement funding through a non-recourse lawsuit loan, you can access the funds you need to cover your pressing expenses and regain your financial freedom. Lawsuit loans are different from traditional loans in that, with a traditional loan, you will need to be approved and have good credit to avoid high interest rates. You can expect to pay significantly more than you initially took out in your loan with that compounded interest.

However, with a lawsuit loan, your credit does not matter, and you do not need to have a steady income to be approved. Your lawsuit loan approval will be based on the likelihood that you will be awarded compensation in your civil or insurance case. You can find out more about whether you qualify when you contact our loan specialist to discuss your needs further.

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

When to Apply for Legal Funding

You may not be sure whether applying for pre-settlement funding is in your best interests. However, if you are having trouble making ends meet, a lawsuit loan could help you get through some of the more difficult times in your life.

Although taking out a loan when you are struggling to cope financially may not seem financially savvy, lawsuit loans are different in that there is no additional interest and if your attorney does not win your lawsuit or insurance claim, you will not be expected to repay your pre-settlement funding.

When you are looking for a minimal to no-risk way to access your pre-settlement funding, a lawsuit loan through High Rise Financial is the way to do it.

The Value of Your Civil Case

The amount of compensation you will be authorized for in your lawsuit loan will vary depending on the amount of compensation you are expected to recover in your civil claim. Depending on the circumstances of your case, you could be entitled to recovery of a variety of damages.

Some of the more common types of losses that you could be eligible for in your civil claim include:

• Lost income and back wages
• Property damage expenses
• Cost of vehicle repairs
• Costs of increased insurance premiums
• Your current and future medical expenses
• Medical equipment fees
• Diminished earning potential
• Loss of consortium
• Diminished quality of life
• Mental anguish and emotional distress
• Disfigurement or skin scarring
• Physical pain and suffering

By accessing pre-settlement funding, you could secure as much as 20% of your anticipated civil claim settlement. However, this amount could be very widely based on the facts of your case. To get a better idea of how much you could be authorized in your lawsuit loan, contact our loan specialists at High Rise Financial today.

What Non-Recourse Means

“Recourse,” in a legal sense, is defined by Merriam-Webster as “the right to demand payment.” When you take out a recourse loan, the lender can continue to dog you for payment even after they take whatever collateral is associated with the loan (as long as the collateral does not fully satisfy the value of what you owe. Here’s an example using a recourse home loan from a bank:

• You take out a recourse loan from a bank so that you can purchase your house.
• The house is used as collateral on the loan.
• Eventually, you default on repayment, and the bank takes the house.
• Unfortunately, the value of your house does not cover the amount you owe on your loan.
• Therefore, the bank continues to demand payment and starts taking some of your weekly paycheck.

The category into which the Internal Revenue Service (IRS) divides types of debt is “non-recourse.” With this kind of debt, which includes pre-settlement legal funding from High Rise Financial, the borrower is not held personally liable. The lender cannot continue to pursue or demand payment after taking any collateral.

Complete a Free Application form now

How Pre-Settlement Legal Funding Is Non-Recourse

When you get pre-settlement legal funds from High Rise Financial, you are taking out a non-recourse loan. Our repayment comes directly from your eventual settlement or jury award at the end of your case, and you are not held personally liable. Perhaps the most significant way this protects you is:

If you lose your lawsuit, you owe us nothing!

By offering non-recourse legal funding exclusively, we ensure that you are protected to the max. This takes the risk out of borrowing and means there’s no reason for you to go without cash when you need it.

Applying for Your Money

High Rise Financial’s underwriters are prepared to offer clients as much as $250,000 if the details of a case warrant it. The process for getting your cash now is simple, straightforward, and totally transparent. As an authorized lender, High Rise Financial is a safe bet for you and your family. Here’s how to go about applying for your cash today.

Fill Out Our Online Form

The only step that requires you to expend energy is the initial application. Enter relevant information on the form located on our Apply Now page, and we take over from there. Here are some important bits of data to include:

• Your name and contact information
• Your attorney’s or law firm’s contact information
• Details about your claim
• Details about the extent of your injuries
• Your expected settlement amount

Our Underwriters Assess Your Case

Once you submit your application, our underwriters take a look at the information you provide. This tells us how much you might need, how much is safe for us to offer, and how much you are expected to get at the conclusion of your lawsuit. Though we may need to contact your lawyer for additional information, we often are able to have money in your account in as little as a single day.

You Get Your Money

Pre-settlement legal funding is yours as soon as it hits your bank account. Unlike other forms of lending, such as medical funding, you do not have to use it for any specific expense. Spend the money as you need, on stuff like:

• Repairing or replacing a damaged vehicle
• Providing food for you and your family
• Paying off medical bills
• Paying tuition for school
• Covering daily expenses like gas, etc.

Your Attorney Pays Us Back

Once your case resolves, your attorney will get a check for the agreed-upon compensation amount from the opposing party. They then write High Rise Financial a check for repayment, take their attorney’s fees, and send you the rest.

Remember, High Rise Financial charges a flat fee rather than compound interest. Also, clients with an attorney almost always get a much larger compensation than they would otherwise receive, even after paying a lawyer’s fees.

How to Spend Your Pre-Settlement Funds

One of the benefits of pre-settlement funding is the ability to spend your money as you need to. You are not going to be limited or prohibited from spending your money in certain ways.

Your non-recourse loan money is yours to spend however you need to. Many families use their legal funding for:

• Rent or mortgage payments
• Phone, Internet, and utility bills
• Entertainment expenses
• Home improvement costs
• Groceries, toiletries, and other household expenses
• Credit card or student loan debt

Consider your preset settlement funding the same way you would consider your wages. They are yours and yours alone. No one should be monitoring your spending or preventing you from spending your money as you see fit.

Laws Impacting Your Available Compensation

When you are pursuing an insurance or civil claim, there are several laws in place that could have an impact on the amount of compensation you are awarded. No matter where you live in the United States, there are two laws in particular that could influence both your settlement and your pre-settlement funds. These include the statute of limitation and contributory negligence laws.

The Statute of Limitations for Civil Claims

In every state, there is a limited amount of time for individuals and businesses to file civil claims. For example, some states have a two-year statute of limitations in place, while others may have three or four-year statute of limitations in place. If your lawsuit is not filed before this deadline, the court system will refuse to hear your case.

For this reason, it is critical to get started on your claim in a timely manner. Otherwise, you could lose your opportunity to recover total compensation for your suffering and the pre-settlement funds you need to cover your costs during this challenging time in your life.

What Is Contributory Negligence?

Contributory negligence laws refer to how a case is handled when a victim shares fault for their damages. In states that follow pure contributory negligence laws, sharing liability will prevent you from recovering compensation. However, the majority of states follow pure comparative fault and modify comparative fault laws.

Here, you can share liability for your damages and still recover compensation for your suffering. However, a civil settlement will reflect a shared fault deduction that correlates to your percentage of liability. For example, if you were found 10% liable for your damages, etc. injury settlement to be reduced by 10% as well.

Not only could shared fault impact the amount of compensation you are awarded, but it may also impact the amount we can authorize your lawsuit loan for. We will need to closely examine the details of your case to find out how much we can comfortably authorize in legal funding.

Apply Today for Pre-Settlement Legal Funding

Personal injury lawsuits often take a long time to resolve. This is because the at-fault party often stalls negotiation proceedings hoping the financial pressure will force you to agree to a lowball offer. Get pre-settlement legal funding from High Rise Financial today for a no-risk, non-recourse solution to your problems.

Simply fill out the form on our Apply Now page to get started. If you have any questions or are more comfortable speaking with one of our representatives, call us now.

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