Thursday, July 8, 2010
Top Reasons to Use Lawsuit Settlements Funding
Lawsuit settlements funding is a cash advance on the expected settlement or verdict in a filed lawsuit. The funding is provided by a litigation finance company to help a plaintiff stay financially afloat while waiting for the final settlement or verdict in their case. Lawsuit settlement funding has become very popular in recent years due to the economic downturn. Plaintiffs can run out of funds or become financially stressed as a lawsuit grinds through the court system.
Here are some good reasons for seeking a lawsuit loan:
1. No risk: A lawsuit loan does not carry any risk for the plaintiff as funding provided is non-recourse funding which means if the lawsuit is not won by the plaintiff, there is no money paid to the funder.
2. Easy Application. Applying for lawsuit settlement funding is a fast and easy process. Reputable litigation finance companies should not charge upfront fees to apply. In addition, there should be no payments whatsoever until a settlement or verdict is reached.
2. No credit/Bad Credit: Unlike traditional bank loans, an applicant’s credit history or employment status have no bearing on the approval for a lawsuit settlement loan. Approval is based solely on the merits of the pending case, so no personal information such as credit history play into the approval.
3. Fast approval. Lawsuit settlement funding companies are good at what they do. They are well versed in understanding the pressures and burdens felt by plaintiffs. The process for applying for cash advance funding is speedy and approvals happen fast.
4. Money received quickly: When a plaintiff is approved for lawsuit settlement funding, money is sent immediately to the plaintiff. Funds can be wired the same day, or if preferred a bank check can be mailed to the plaintiff.
5. Free to spend: While it is prudent to budget and spend the money wisely, money received via lawsuit settlement funding is the plaintiff’s money, and no one can direct how or where the money is spent.
6. No monthly payments: Repayment of funds does not require monthly payments. Lawsuit settlement repayment only happens on or after the lawsuit is settled or a verdict is reached. If plaintiff loses case, the plaintiff is not required to payback any of the money received.
Lawsuit settlement funding gives plaintiffs the ability to stay the course and hold out for the largest settlement possible. As cases drag on and plaintiffs are pushed to settle their cases, this type of funding buys time and relieves financial pressures it is common for plaintiffs to settle too early. Lawsuit settlement funding allows plaintiffs to hold out for the maximum amount possible.