An auto accident injury can disrupt your life, and you may find it difficult to pay your bills. While an insurance company could pay for some damages, they generally won’t cover your bills and expenses.
What do you do if you can’t afford to wait for your legal case to settle? How do you pay for your medical expenses and other costs from the accident?
The good news is you don’t have to wait! You can get cash now.
Pre-settlement loans, commonly referred to as a settlement advance loan, cover the cost of accident-related injuries, medical bills, lost wages, and more.
Receiving a settlement advance may be the right option for you based on your legal case. Read on to learn more about the process of applying for personal injury settlement funding and the benefits it provides.
What Are Pre-Settlement Loans?
This type of financing is ideal for people waiting for a settlement. Many plaintiffs with valid legal claims do not have the money to pay upfront litigation costs. Plaintiffs can apply for a legal settlement advance loan or personal injury settlement funding to cover these pre-litigation expenses.
To understand how this type of loan works, you first need to know how personal injury lawsuits work. When someone gets injured because of someone else’s negligence, they may file a lawsuit against that person or entity.
If the other party is found guilty, the plaintiff receives compensation.
However, if you are the plaintiff and you lose, you may not get anything. In addition to that, waiting for your case to settle can be pretty stressful because you might have to deal with health expenses while awaiting compensation.
Pre-settlement loans can help you with both these issues.
Reasons Why To Apply For A Settlement Advance Loan
Pre-settlement loans are among the most popular methods of financing personal injury claims. Pre-settlement funding is a fast, easy and safe way to get the money you need when you need it most.
It is a popular option used by plaintiffs to pay for necessary expenses and make difficult life transitions easier.
Quick Approval
If you filed a personal injury lawsuit, then it’s likely that your application will be approved quickly. The lender will consult with your attorney to better understand the case and potential outcome. If it’s clear that your case is strong, you won’t have to wait long for approval.
Instant Access To Funds
If you need money urgently, this is your best option. So why wait for your settlement or court date? Pre-settlement loans help you get your cash now, not later. Once approved, you’ll receive access to your money within 24-hours.
Does Not Require Collateral
Pre-settlement advances are typically only approved for those with a pending personal injury lawsuit and a very high likelihood of receiving a settlement at the end of their case. So if you are approved, you do not need to put up anything as collateral to receive your pre-settlement loan.
Bad Credit Is Not An Issue
Even if you have bad credit, pre-settlement loans are available for individuals. In addition, your credit score has nothing to do with the likely outcome of your legal case. So if you have a poor credit rating, it is irrelevant as it pertains to your settlement advance approval.
Better Interest Rates
You will get lower interest rates compared to other forms of financing. Pre-settlement loans offer competitive interest rates, so these loans are easier on your finances and your budget.
Pre-settlement loans usually carry a fixed interest rate. The loans are due and payable in one lump sum when your settlement check arrives.
Choose Settlement Funding To Pay Your Bills
Pre-settlement loans are a great way to cover any extra costs you might have instead of putting that burden on a credit card. You don’t need to take on credit card debt, especially when the accident was not your fault.
For example, if you have medical bills or car repairs, pre-settlement loans can help cover various expenses.
While it may take time for your case to settle, there is absolutely no reason for you to have an empty bank account in the meantime. So here are some examples of using the funds to take care of your financial needs.
Recover Lost Wages
If you were unable to work due to your injuries and lost wages in the process, personal injury settlement funding could help with these expenses. In addition, using this type of personal injury settlement funding can give you an extra financial cushion.
While you wait for your case to settle, you won’t have to worry about how to pay your bills. Instead, you can cover your rent and utilities without the added stress.
Insurance Premiums
Chances are your medical bills have piled up while you’ve waited for your case to settle. You can pay your medical expenses and your insurance premiums. However, you should confirm with your lender, as there are instances where you might have to wait until after the settlement.
Legal Fees
Personal injury settlement funding can also help cover legal fees related to your case.
If you are receiving a large amount of money from your settlement, you could use the settlement advance to pay for additional legal services. On the other hand, if you think you are entitled to a more considerable compensation, consulting with your lender and lawyer could help ensure a better outcome for your case.
Pre-settlement Loans Provide An Excellent Solution
Injuries can happen to anyone, and when they do, it’s essential to understand your options. A pre-settlement loan is a great way to add some financial stability back into your life, but you should always make sure you read the fine print.
Remember to get all of the information about the terms of your loan. Plus, once you have chosen your pre-settlement loan provider, take advantage of the available resources. You owe it to yourself to ensure that this is the right kind of financing for your needs.
At Florida Settlement Funding, we help our clients throughout the settlement founding process.
If you have any questions about applying for pre-settlement loans, click here to get started. We will guide you every step of the way.