Companies in the lawsuit lending industry sometimes use terms that sound similar but have different implications and come with vastly different terms. If you have a personal injury claim and are suffering through the sometimes year-long process of getting your compensation, you might need money now. But it can be hard, with all the similar terminology, to know exactly what you’re getting. For instance, what’s the difference between pre-settlement legal funding and a cash advance?
In both cases, you get cash deposited into your bank account quickly, and in both cases, you pay back the borrowed amount once you get your compensation package. But pre-settlement legal funding like that offered by High Rise Financial is much safer. We’ll go into more detail down below, but the essential difference is that pre-settlement legal funding is not tied to your personal finances, does not require a credit check, and is a form of non-recourse debt that is designed to be favorable to the borrower (that’s you!).
If you need some funds to hold you and your family over until your case settles or a jury gives you the compensation you deserve, apply online with High Rise Financial for FREE. The process is simple and straightforward, as well as entirely transparent. There are no hidden fees and no risks.
Non-Recourse Means Safer for You
Even though the terms are a bit jargon-y, it’s worth digging into exactly what is meant by “recourse” cash advances vs. “non-recourse” pre-settlement legal funding. This will help to show why legal funding is the far better option.
The Internal Revenue Service divides all debt (such as loans) into these two categories.
- Recourse debt means that the borrower is held personally liable for the entirety of the debt.
- Non-recourse means that the maximum amount a lender can take from the borrower if the borrower defaults is the collateral associated with the loan.
For instance, the collateral of your lawsuit funds is your eventual compensation package. If you take out a recourse cash advance, the lender could take your compensation and then continue to pursue payment if the compensation does not equal the value of what you owe.
When cash advances typically use compound interest, the amount you end up owing can be substantially higher than what you borrowed. Recourse cash advances allow the lender to take actions like garnishing your wages in order to get the full value they are owed. Meanwhile, your interest grows.
When you get pre-settlement funding from High Rise Financial, it’s non-recourse. We are paid an agreed-upon amount, based on a flat fee rather than compound interest, out of your settlement or jury award. Even if we wanted to, we can’t pursue any additional payment from you, as you are not held personally liable for the debt. That’s the difference between recourse and non-recourse debt.
Repayment if Your Lose Your Lawsuit
Sometimes, your personal injury lawsuit might end in the other party’s favor, leaving you with no compensation. If you took out a recourse cash advance or lawsuit loan, you might still be on the hook for monthly repayments. That is not the case with pre-settlement legal funding from High Rise Financial.
If you lose your lawsuit, you do not owe us anything. The pre-settlement legal funding is yours, and we take the loss. That’s why we say pre-settlement legal funding has no risk.
How to Know if You Qualify
Pre-settlement legal funding is available for most clients with a personal injury lawsuit pending. There are a few requirements, however.
Have a Valid Lawsuit
Personal injury is a wide area of legal practice. There are a variety of different case types that fall under this umbrella, including some of these that we have previously supplied funding for:
- Medical malpractice
- Car accidents
- Bicycle wrecks
- Dog bites
- Animal attacks
- Nursing home neglect
- Faulty medical devices, such as transvaginal mesh lawsuits
Have an Attorney
Also, to help ensure that your case is viable and you stand a strong chance of winning compensation, High Rise Financial requires you to have a law firm or attorney on your case before providing you with pre-settlement legal funding. Having a lawyer is always a good idea, as you stand a much higher chance of getting the recovery you deserve with professional legal assistance.
Send Us Your Application Today
If you need money while your lawsuit settles, fill out the form on our Apply Now page to start our process. It is simple, requires no credit check, and only asks for information specifically related to your case — no tax records or bank statements required. Best of all, it’s absolutely FREE.
Need a question answered about how the process works? Email us through our contact page or call our team of underwriters at (877) 823-4377.