What are Pre Settlement Funding for? – Know the Basics
The lawsuit cash advances on pending lawsuits are options that are available to plaintiffs who are involved in a litigation. Plaintiffs do pay their attorneys on a contingency fee basis and in the event that their case qualifying, they will be given a lawsuit loan on their pending lawsuit. The lawsuit loans are as well known as pre settlement funding.
By far and large, there has actually been a lot of misunderstanding on the cash advances on pending lawsuits. Check this guide out for some of the facts that you need to know of when it comes to the whole idea and concept, and how it operates, lawsuit cash advances or pre settlement funding.
Generally, when we talk of pre settlement funding or lawsuit cash advances, these are advances awarded to plaintiffs against the likelihood of the anticipated award or legal fee. These various forms of legal lending can be given different names and some of the most common ones are lawsuit loans, lawsuit lending and pre settlement funding and these all refer to the cash advances given to the plaintiffs against a lawsuit waiting determination.
Going forward, one thing that is to be as clear is that these are not to be seen as traditional loans and as such the names that they go by, lawsuit lending, lawsuit funding, pre settlement funding all that point to the fact that they operate as cash advances on pending lawsuits and not loans as we know of. This must be noted as with them, there will be no monthly payments, points and upfront fees as we see in the traditional loans. You are not required to pay any fee for the application of the loan save for some of the fees that may be associated with the cash advance you are looking for like the origination and underwriting fees. You are not obliged to pay the advance back in the event that you lose your case. They are as such referred to as non-recourse loans as the plaintiff will not be under any obligation to refund the funding company in the event that they lose the case or they end with a settlement that it less that what is there on the funding agreement.
Cash advances on pending lawsuits are an ideal alternative for those whose cases are seen to be such that will last a few months or where settlements are likely to take longer. As such, if you happen to have so exhausted all you financial options to help fund the case at hand to no avail for one way out, then you may be advised to consider applying for the pre settlement funding alternative.