The only real similarity between pre-settlement funding and a bank loan is that you borrow money. After that, the differences are numerous. Applying for, receiving, and repaying pre-settlement funding is all different from a bank loan.
It’s good that you’re asking these questions. If you were seriously injured in an accident, you may have filed a personal injury case to try and recover damages. But the other side may not settle for months, or even years, depending on the specifics of your case.
In the meantime, you’re looking for ways to make ends meet financially. This is especially true if you can’t work because of your injuries. No money coming in can be frightening. The good news is that pre-settlement legal funding is a risk-free option to get the money you need and fast.
Fill out the application form to get started.
How the Application Process Differs
The first way that pre-settlement funding is different from a bank loan is the application process. The main reason for this is because legal funding is connected to your personal injury settlement rather than your personal finances.
Because of this, to apply for legal funding with High Rise Financial, you must have a lawyer representing you in your personal injury case.
With a bank loan such as a personal loan, the banker needs you to provide them with a lot of financial information. They also seek out some of this information on their end. This includes:
- They do a hard pull or “hard inquiry” of your credit score.
- You must provide proof of employment.
- They require income verification such as pay stubs and W-2s.
They ask invasive financial questions because they want to make sure you can pay the loan back. Your loan is totally dependent on how stable and/or financially well off you are.
In contrast, with pre-settlement funding, we don’t ask you for any personal financial information. That’s because you are approved for legal funding based on the strength of your personal injury case and the severity of your injuries. Approval has nothing to do with your FICO score.
The information we need in your initial application is very basic and includes:
- Your name and contact information
- The state in which you live
- Your lawyer’s name and contact information
The additional information we need to approve you comes from your lawyer. We will ask them for documentation that details your personal injury claim, your injuries, and other specifics of your case.
You release them to provide us with this information when you fill out the application. We keep all details confidential.
For a free legal consultation, call (877) 735-0016
The Process of Determining How Much Funding You Receive Also Differs
If you have a good-paying job and a decent credit score, you’ll be able to get a loan. If you’re unemployed or have maxed out your credit card(s), you will be denied a loan.
With pre-settlement funding, on the other hand, the amount of funding you receive depends solely on the details of your case. If you have a strong case, you will likely be approved. The amount of legal funding you are eligible for depends on the amount of your predicted settlement.
The higher the estimated settlement, the more funding you are eligible to receive. It doesn’t matter if you are out of work or you have maxed out your credit cards.
The Amount You Can Receive
You may be eligible to receive anywhere from $500-$250,000 in pre-settlement funding. Most of our clients receive amounts on the lower end of that scale. The high dollar amount is for plaintiffs with the most serious injuries, or for wrongful death claims.
We also are careful to provide you with the amount of legal funding you need to pay basic living expenses. In this way, we (and your lawyer) help ensure that we reduce your financial stress, and give your lawyer the time they need to negotiate a strong settlement.
How the Repayment Process Changes
The last way that pre-settlement funding differs from a bank loan is in the terms of repayment.
With a bank loan, you:
- Have monthly payments
- Pay interest + principal
- Pay off the loan over a course of many years
- May face a prepayment penalty
- May face legal action if you default on the loan
In contrast, with pre-settlement funding, you:
- Have no monthly payments
- Don’t pay interest
- Pay us back in one lump sum when you win your case
- Don’t pay us back if you lose your case
As you can see, the repayment terms of a bank loan benefit the lender. The repayment terms of pre-settlement funding protect you, the plaintiff. That last point is the biggest one. Even if you have some legal funding left that you haven’t spent, you don’t owe us a penny.
Apply for Pre-Settlement Funding Today
If pre-settlement funding sounds like a good solution to your financial woes while you wait for your personal injury case to settle, just fill out the application form. We can approve you in as little as an hour, and if you’re approved, we can transfer your funds to you within 24-48 hours. If you have any questions, start an online chat, or call us at (866) 407-6404.