A lot of individuals have used the term lawsuit loans over the years, but experts have rebuffed it, as the term is apparently nonexistent. When you talk about getting a loan, it is an amount that you borrow from and have to pay, within an agreed period, to a financier. It involves having an interest, at a percentage agreed by both parties, which you have to pay back as well. Before a loan is finalized, the person applying for the loan will need to show credentials to prove that they are qualified. Most of the time, the documents, needed for approval, include proof of employment and income and the individual’s credit score.
Lawsuit Settlement Funding
Because of the stricter terms of a loan, it makes it hard to qualify for it. Lawsuit settlement funding is used as a better term in the industry. In this case, anybody who applies for a funding will get an approval without the need to present the needed credentials for loans. What the financing company usually does is look into the case of the applicant in collaboration with the applicant’s lawyer. A thorough discussion of the case will be done until both parties come to an agreement for the specific settlement amount to be applied. In some cases, the funds are immediately released within 24 hours. Depending on the agreed conditions, the funds can be released in full amount or the applicant will have to get the amount by installment.
If the client gets the funds, he or she will be free to decide as to how the money is going to be spent . However, the financing company commonly advises the client to use the funds for expenses for medical and legal needs. The funds may also be used to pay the client’s bills or buy groceries. Usually, the financing agency recommends spending of the funds wisely since the client can only apply for funding once until the case is resolved.
Not a Loan
Therefore, there really is no such thing as a lawsuit loan existing in the business. You do not have to pay for monthly fees just as you would do with loans. With settlement funds, you will have to wait for the resolution of your case so you can pay for the money you have borrowed. If you lose the case, then you will not have to pay for anything. The funds approved during your settlement will be yours. However, if you won the case, the agreed amount of settlement funding will be the only thing that you have to cover for. Oftentimes, the money you use to pay for the funds will be obtained from the amount you have received after winning the case. In this way, you have all the time to pay for what you have borrowed, minus the pressure.
.:About the author:.
James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible