How Do Plaintiffs In Need Of Help Actually Get Their Lawsuit Loans?
Although pre-settlement funding is something that has existed in the United States for decades at this point, it’s only recently become well-known to the average plaintiff. Even though they have many different names in the legal finance world including lawsuit cash advances, pre-settlement loans, litigation financing, lawsuit funding, accident loans, and, settlement funding to name a few, they’re all pretty much the same thing.
This type of legal financing is quickly becoming the preferred method for plaintiffs to fund their lawsuits. And it’s easy to see why: they are a no-risk solution to one of the largest problems plaintiffs have when facing legal trouble.
However, many clients new to the process often find themselves asking, “how do plaintiffs needing help get their lawsuit loans with RapidLawsuitFunding.com after they’ve completed the hassle-free online application process? The answer is simple, but in order to understand it more clearly, you’ll have to learn more about how Lawsuit Loans function in the financial and legal industries.
What Are The Financial Mechanics Behind A Lawsuit Loan?
The most basic way to explain the mechanics behind lawsuit loans is that a settlement loan company purchases a portion of the monetary settlement that you expect to reach in the future. During that time, the plaintiffs can use the money they’ve received from the settlement loan company on any aspect of their lives that they see fit.
Lawsuits can be unpredictable and there are few ways to tell exactly how long a case might take to reach a verdict. However, once a successful settlement is reached, the loan will be paid back to the settlement loan company with the agreed-upon interest rate included.
Essentially, the settlement loan company is looking at your future legal settlement as a financial asset for which they can invest.
How Are Lawsuit Loans Considered An Investment?
Lawsuit loans are considered an investment because they treat a plaintiff’s future settlement as if it is a financial asset and purchase a portion of it from them. You may ask yourself, “how can my future settlement be treated as a financial asset if a verdict hasn’t been reached yet?”
This is actually easier than you think. The legal system has centuries worth of history in which similar cases have been tried in a court of law, and so once a company like Rapid Lawsuit Funding (considered one of the best lawsuit loan companies to enter the market) discusses a plaintiff’s case with their lawyer, they are able to properly assess whether a successful settlement can be reached or not.
Lawsuit loan companies aren’t the first type of financial industry to treat speculative income as an investment-worthy asset. This type of financial investment can also be seen in companies which deal in lottery payouts (in which investors ‘buy’ winnings from lottery winners who would only be given their winnings incrementally otherwise), as well as pay-day loan companies (companies which give clients immediate ‘loans’ against their future paychecks).
Are Lawsuit Loans Actually “Loans” In The Traditional Sense?
In the traditional sense, lawsuit loans are not actually “loans“. As we’ve stated earlier, they’re more like investments. The main way in which they differ from a traditional loan is that a plaintiff’s obligation to repay the loan is only contingent upon a verdict being reached in the plaintiff’s favor.
What that means is if the plaintiff doesn’t win their lawsuit, they are not required to pay back the loan that was received from a legal funding company.
Unlike a more traditional loan received from a bank or credit union, there are no upfront fees to apply for a lawsuit loan. Not only that, but the plaintiffs are not given a credit check to determine whether they apply for pre-settlement funding. Unlike other lending options, the possibility of receiving a lawsuit loan depends entirely on the strength of the plaintiff’s case – not their bank account.
Why Do Settlement Loan Companies Need To Talk With My Lawyer?
If you are a plaintiff interested in applying for a lawsuit loan with Rapid Lawsuit Funding, we must have the contact information of your solicitor in order to provide you with pre-settlement funding.
The simple reason for this is that your lawyer will be the person most familiar with your case will have all of the information we require in order to process your loan request. loan applications can be processed in less than 24 hours, meaning that the plaintiffs can expect to find financial relief in their lawsuits much sooner than with a traditional loan.
Your Choice Of Lawyer Will Affect Your Case
Additionally, by contacting your legal representation, not only will Rapid Lawsuit Funding have a better understanding of the risks and advantages of your specific case, but will have a better impression of your lawyer as well.
For instance, if you are involved in a car accident lawsuit, but your legal representation has only previously dealt with product liability cases, it will doubtlessly affect your application.
Your Legal Representation Will Handle Your Settlement And Loan Payback
Your solicitor will also be the point of contact in how and when you receive your settlement after a verdict has been reached in your favor. Also, they will be the person handling the repayment of your lawsuit loan.
After a judgment has been reached, any financial compensation that is to be awarded to a plaintiff must be done through their legal representation. Before you receive your settlement directly, any outstanding debts incurred during the lawsuit (including lawsuit loans) will be subtracted from the balance.
That being said, when you finally do receive your settlement you can be happy knwoing that all of the outstanding financial obligations associated with your lawsuit are already taken care of!
When Will I Be Expected To Pay Back My Lawsuit Loan?
You will be expected to repay your lawsuit loan as soon as your solicitor is given the financial settlement awarded in your case. The standard length of time for a settlement to be processed (and the money to be transferred to a plaintiff’s solicitor) is six weeks although every case is unique and the wait time will vary between lawsuits.
It is at this point that lawyers will speak with any legal funding companies associated with your settlement and arrange repayment. The plaintiffs should be aware that any lawsuit loan companies involved in their case must be paid back before any settlement money is transferred to them.
Find Comfort When You Receive Cash Fast With A Lawsuit Loan
Now that you know a little more about how the lawsuit loan industry works, you can rest easy in knowing they are one of the simplest and quickest ways for plaintiffs to secure funding for their lawsuit.
By treating your future settlement as an asset, lawsuit loan companies are able to make an investment in your case and purchase a portion of your winnings in advance, sometimes putting cash in your hand in as quick as 24 hours!.
And since your lawyer will handle all of the responsibilities of loan repayment once your settlement is received, the process will be worry-free! With this kind of no-risk situation, it’s no wonder plaintiffs from all across the country Apply For Lawsuit Loans With Rapid Lawsuit Funding! If you need financial aid during your lawsuit, we’re the best lending option for quick and easy financial assistance.