Pre settlement funding is a type of private financing facility that has gained popularity in the recent past. A pre settlement funding company makes advance payments to the injured person in settlement cases and promises them a fixed interest rate. The advantage of such financing is that the injured person is not required to go for a loan after being injured. The amount advanced is based on the percentage of future income provided by the applicant. However, there are certain disadvantages of pre settlement funding as well that need to be weighed carefully before availing the facility. Check out this page to read more about them.
The main disadvantage is that the interest rate advanced is very high and the loan advanced amounts to a large extent. Even if a small percentage of the expected settlement is earned, the loan amounts can be huge. This is especially so in the case of personal injury where the amount advanced is much higher than the actual value of the injury or settlement received. This can result in perpetual credit requirements and a borrower needs to keep in mind that there will always be a limit on the amount of advance he can take.
Secondly, pre-settlement loans may not be available to all. It depends on various factors like the gravity of the injury and the amount of settlement expected. A simple search through the internet may give a lot of results but it is better to contact a lawyer who deals with these types of funding. He would be able to recommend one that suits your requirements. Lawsuit loans can either be secured or unsecured depending on the type of financing provided. Secured lawsuit loans are available only to those homeowners who have kept their property as a guarantee or a down payment. Visit: https://usclaims.com/ to discover more about lawsuit loans.
On the contrary, unsecured pre-settlement loans are open to anyone who has an income and a good credit rating. It is also possible to get the cash faster. The biggest advantage of a lawsuit loan is that the processing time is very less as compared to bank loans. A simple application and signature may get the cash in a matter of hours. But when compared to bank loans, the rate of interest on lawsuit loans is slightly higher.
Before settling for any form of funding, plaintiffs should carefully compare different offers and the terms and conditions attached to each. It is recommended that they compare pre settlement funding as well. Pre settlement funding has made life easier for plaintiffs who had to face huge financial crunch when their case was settled. This also helps them to pay their living expenses while waiting for the case to be finalized.
It is always a good idea to go in for a pre settlement funding rather than taking a bank loan. There are many benefits that are associated with lawsuit financing like reduced processing time and lower interest rates. Therefore, pre settlement funding is becoming more popular every day. If you want to know more about this topic, then click here: https://en.wikipedia.org/wiki/Legal_financing.
