lawsuit loans

May 14, 2025 by Paul Coppola

Understanding How to Get a Loan on My Lawsuit

Lawsuits take time and can be stressful—not only because of the legal battle itself but also because of the financial strain it often causes. If you’re unable to work due to an injury, falling behind on bills, or facing mounting medical expenses, you might ask: Can I get a loan on my lawsuit?

The good news is, you can. A loan on your lawsuit—commonly known as pre-settlement funding or a lawsuit cash advance – provides immediate financial support while your case moves through the legal system. In this post, we explore how to get a loan on your lawsuit in detail. This includes eligibility requirements, the application process, pros and cons, and other things you might find useful. The goal is to make plaintiffs aware of what they are getting into and what common pitfalls to avoid.

What Is a Loan on a Lawsuit?

A loan on a lawsuit is a cash advance given to plaintiffs expecting a financial settlement or judgment from a pending lawsuit. Legal funding contracts are designed as an immediate sale of future proceeds. As such, they are not actually loans in the traditional sense. In fact, there are many differences between personal loans and lawsuit loans. Unlike traditional loans, these advances are non-recourse, which means you only repay the loan if you win or settle your case. If you lose, you owe nothing and the funding company cannot pursue you personally for repayment.

Getting a loan on a lawsuit is especially helpful if you’re unable to work or have significant out-of-pocket costs while your lawsuit is pending. It bridges the financial gap until your case concludes.

Why Consider a Loan on My Lawsuit?

Plaintiffs pursue lawsuit loans for a variety of financial and strategic reasons. Here are some common situations where a loan on your lawsuit can be helpful:

Covering day-to-day expenses such as rent, food, or utilities while you wait for your case to resolve.
Paying for medical treatment related to injuries sustained in accidents or malpractice.
Avoiding early, low-ball settlements from insurance companies by giving you the breathing room to negotiate.
Replacing lost wages if you are unable to work due to the circumstances of your case.

If any of these apply to you, a loan on your lawsuit might be a viable solution.

Types of Cases That Qualify for a Lawsuit Loan

Most lawsuit funding companies focus on personal injury and civil litigation cases that are likely to result in a monetary payout. Common qualifying cases include:

Car accidents
Medical malpractice
Slip and fall injuries
Workers’ compensation
Wrongful death
Employment discrimination or wrongful termination
Product liability
Premises liability

The stronger your case and the higher the expected settlement, the more likely you are to be approved for funding.

How to Get a Loan on My Lawsuit:

Getting a loan on your lawsuit is a relatively straightforward process, especially compared to applying for traditional loans. Here’s a step-by-step guide to help you understand what to expect:

Have an Attorney

To qualify for a lawsuit loan, you must have legal representation. Most funding companies only work with plaintiffs whose attorneys are working on a contingency fee basis. This means your lawyer only gets paid if you win the case. Funders prefer this type of arrangement because it generally means the representing attorney strongly believes in the case’s merits. Otherwise, an attorney would not spend his/her time or money pursuing the matter.

Research and Find a Reputable Lawsuit Funding Company

Reputable lawsuit loan companies exist but they may be hard to find. Using the information available online and elsewhere, plaintiffs can contact various funders and ask questions. Prudent investigators look for funders who offer:

Transparent fee structures
Positive lawsuit loan company reviews
No hidden fees or upfront costs
Fast processing times – same day lawsuit loans occur every day

Plaintiffs might be wary of companies that promise “guaranteed” approvals without compiling necessary paperwork.

Submit Your Application

Once you find a suitable funder, simply apply for lawsuit funding. You’ll need to provide:

Basic personal information
Case details (type, date, injuries, etc.)
Your attorney’s contact information

The funding company will reach out to your lawyer to obtain documentation and assess the merits of your case.

Case Underwriting

Once the necessary paperwork is gathered, the underwriting process begins. Lawsuit funding underwriters review your documents and contact your attorney to determine whether your case is a fundable one. They try to determine:

The strength of your claim
Estimated value of your future settlement
Timeline of the case

Accept or Reject the Funding Offer

Once you’re approved, you’ll receive an offer outlining:

The amount of the advance
The interest rate or funding fee
Repayment terms

Most reputable lawsuit funders adhere to lawsuit loan best practices, which are designed to legitimize the practice of providing lawsuit loans to the public as a business undertaking. To understand more about lawsuit loan best practices, visit this page. It also might be a good idea to review the contract with your attorney before signing.

Funding

The lawsuit loan process ends with clients getting funding. Once the agreement is executed, funds are sent via electronic funds transfer or overnight courier. When you receive the funds, your attorney will place the funding agreement as a lien in your file to be paid at the time of disbursement.

How Much Can I Borrow?

How much lawsuit funding depends on the estimated value of your lawsuit. Most funding companies offer 10% to 20% of your expected settlement amount.

For example, if your case is estimated to settle for $100,000, you might be eligible to receive between $10,000 and $20,000 in advance.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Repayment Terms

One of the biggest advantages of getting a loan on your lawsuit is that repayment is contingent on you winning the case. If your case is unsuccessful, you do not have to repay the money. If you do win or settle, repayment is typically handled directly by your attorney. The funding company is paid out of your settlement before you receive the remaining balance.

Because of the additional risk of loss (total loss) borne by the funding company, plaintiffs can expect additional costs to offset this risk. Competitive lawsuit loan rates are generally 18-20% every six-month period.

For a $10,000 lawsuit loan contract, plaintiffs will repay an additional $1,800 to $2,000 for every six-month period from the time of executing the contract until the advance is repaid. For example, if a case resolves within the first six-months, plaintiffs will pay $11,800 to $12,000 for that same $10,000 contract.

Pros and Cons of Getting a Loan on My Lawsuit

There are pros and cons to weigh with any financial transaction. Getting a loan on your lawsuit is no different. Those plaintiffs considering legal funding might want to consider the following:

Pros:

Risk Free Transaction: As stated above, lawsuit loans are not repaid if the case is unsuccessful.
Immediate Access to Cash: Legal funding is quick because plaintiffs usually only turn to lawsuit loans as a last resort. Accordingly, funds are often delivered in 24–48 hours after approval.
No credit check: Approval depends on the expected success and value of a case. Credit scores, income verification and employment history are typically not considered.
Flexibility Allows Attorneys the Time to Secure Just Compensation: Getting a loan on a lawsuit allows plaintiffs to reject low-ball settlement offers simply to ease financial strain. With financial pressure relieved, attorneys can properly litigate the case to secure a fair resolution.

Cons:

High fees: Lawsuit loans can be expensive. Interest or flat fees accumulate over time.
Reduced settlement: The repayment and fees leave less for the plaintiff at the end of the case.
Lack of regulation: Not all states regulate lawsuit lending, which can lead to predatory practices.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Alternatives to a Loan on My Lawsuit

Lawsuit loans are usually a last resort for plaintiffs in a financial bind. Most have exhausted these alternatives before they apply for legal funding:

Personal loans: If you have good credit, this may offer lower interest.
Credit cards: Costly but may provide short-term help if used wisely.
Family and friends: A personal loan from someone you trust could be more flexible.

Tips for Choosing a Lawsuit Loan Provider

When you’re trying to get a loan on your lawsuit, choosing the right provider is critical. Here’s what to look for:

Transparent Terms: Make sure the contract is clear about interest rates, fees, and repayment conditions.
No Upfront Fees: The best lawsuit loan companies will not ask for money upfront.
Attorney Cooperation: A good company will coordinate smoothly with your legal team as attorney cooperation is essential to the undertaking.
Customer Support: Look for responsive customer service in case you have questions or concerns. You might also try to find a company which uses live lawsuit loan representatives instead of a phone directory system to speed up the process.

Always discuss the funding arrangement with your attorney to ensure it aligns with your legal strategy.

Frequently Asked Questions

Q: Is it legal to get a loan on my lawsuit?
A: Yes. Lawsuit funding is legal in most U.S. states, although regulations vary. Always check your state’s rules or consult your attorney.

Q: Will this affect my case?
A: No, as long as you work with a reputable funding company. Your attorney will remain in control of your legal strategy.

Q: Can I apply for more than one advance?
A: Yes, some companies offer multiple lawsuit loans if you need more money, the case takes longer or the value increases.

Q: Do I need to make monthly payments?
A: No. Repayment is a one-time deduction from your settlement at the end of the case. This is handled by your attorney.

Should I Get a Loan on My Lawsuit?

If you’re struggling financially and need support while your lawsuit is pending, getting a loan on your lawsuit can be a practical solution. It offers quick cash, doesn’t require credit approval, and puts no repayment burden on you if you lose the case.

A lawsuit loan is a powerful tool—but like any financial decision, it should be made carefully and with full awareness of the consequences. When used wisely, a loan on your lawsuit can give you the financial stability to see your case through and maximize your potential settlement.

Thank you for your interest in Fair Rate Funding.

Apply Now

April 15, 2025 by Sales

Lawsuit Loan Underwriters – Essential to the Process

Although lawsuit loan underwriters approve cases for funding, many applicants feel and approval is a foregone conclusion. However, many applications fall short of the requisite criteria for a funding approval.

More goes into underwriting a lawsuit loan or cash advance than most people realize. Analyzing each fact pattern, the applicable laws from each state, insurance coverage, damages assessments and a myriad of other factors is the job of the lawsuit loan underwriter. The professionals who occupy these roles normally come from a few typical occupations. In this post, we discuss some of the most common.

Legal Professionals for Lawsuit Cash Advance Funding

Most lawsuit loan underwriters have a background in the legal field. Legal professionals are in an ideal position to best analyze a potential case, identify potential problems, and assess each cases’ likelihood of success. Legal professionals such as attorneys or paralegals bring their education and experience into the lawsuit funding underwriting process. Their experiences also assist with client interaction and also allow them to speak intelligently with plaintiffs and their counsel.

Insurance Adjusters for Lawsuit Cash Advance Funding

Individuals who previously worked in the insurance industry also possess valuable experience beneficial to underwriting operations. Insurance professionals, especially those who were adjusting potential claims (claims adjusters), are able to assess the cases likelihood of a lawsuit’s success at trial. They also have valuable experience in understanding how insurance companies value these claims/lawsuits and what might be offered as a settlement.

Evaluating cases for lawsuit cash advance funding is subjective. What one lawsuit loan underwriter sees, another may not see because his/her experience is different. Nevertheless, similar factors are calculated for every applicant. Pain and suffering, loss wages and/or earning capacity, loss of consortium are simply a few examples of these typical considerations. Insurance adjusters make good lawsuit funding underwriters because they have seen thousands of fact patterns with similar damages through their work in the claims management field.

Factors such as the particular insurance carrier, relationships with certain adjusters, jurisdiction, venue, lawsuit loan documentation, and a host of others factors, lead to an accurate estimation of a lawsuit’s settlement value. This estimate is very valuable to those lawsuit settlement funding companies.

Risk Management Specialists as Lawsuit Loan Underwriters

Risk management is also a large part of the lawsuit cash advance funding business. Lawsuit funding outfits therefore use portfolio managers to add safety to the portfolio through diversification.

For example, a manager’s analysis of and existing lawsuit cash advance funding portfolio could reveal a larger than appropriate amount of TV Mesh lawsuit funding deals as compared to other types of funding such as car accident lawsuit funding. In response, the manger might then recommend a slow down in the acceptance of these cases for funding or even a temporary shut down until the ratio returns to an acceptable range.

Moreover, portfolio managers ensure that exposure to any one lawsuit cash advance funding deal would not be catastrophic to the entire portfolio if the case should happen to lose. For example, if there is a $20 million portfolio, the risk manager may suggest that no more than $200,000 be advanced on any one case. Because any lawsuit funding loss is a total loss, losing a $4 million dollar funding for example, would be a 10% loss of total capital and could be catastrophic to the fund’s profit projections since the return on the remaining capital cannot possibly make up the difference (short term) even in the most optimistic of scenarios.

Final Thoughts about Lawsuit Loan Underwriters

We have provided a few of the most common professional backgrounds often employed by litigation loan companies in an effort to help our readers gain a better understanding of the lawsuit cash advance funding industry. We trust these writings are successful in reaching this goal.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Thank you for your interest in the lawsuit cash advance funding business.

Apply Now

March 26, 2025 by Paul Coppola

How Legal Funding Helps Plaintiffs Secure Justice

When individuals file lawsuits, they often face significant financial strain. Legal battles can take months or even years to resolve, leaving plaintiffs struggling to cover medical bills, living expenses, and other financial obligations. This is particularly true if plaintiffs are unable to work, sometimes due to accident injuries. This is where legal funding helps plaintiffs by providing a financial lifeline during the litigation process. In this post, we examine how legal funding helps plaintiffs endure the legal process and secure justice.

What Is Legal Funding?

Legal funding, also known as lawsuit funding or pre-settlement funding, is a non-recourse cash advance provided to plaintiffs awaiting a settlement or court judgment. Unlike traditional loans, legal funding does not require monthly payments, and plaintiffs only repay the advance if they win their case.

Although sometimes referred to as lawsuit loans, the differences between personal loans and lawsuit loans are many. First, traditional lending implies repayment at some point in the future. Legal funding however, is structured as a sale of future property rights in a lawsuit’s recovery. If the lawsuit is not successful, what is purchased (part of the recovery) is nothing. Thus, lawsuit loans are only repaid if a case is successful. A lawsuit “lender” cannot pursue a plaintiff personally for repayment under the terms of the agreement and under normal circumstances.

This unique nature provides a liquid market for plaintiffs to sell a portion of their recovery prior to receiving it. And in certain circumstances, makes legal funding a viable financial tool to alleviate immediate financial concerns.

Key Ways Legal Funding Helps Plaintiffs

Legal funding helps plaintiffs in various ways. These can include:

Covering Essential Living Expenses

Many plaintiffs are unable to work due to injuries or other case-related circumstances. Legal funding helps plaintiffs by covering rent, mortgage payments, utilities, groceries, and other necessities while they wait for a settlement.

Providing Relief from Medical Bills

Personal injury plaintiffs often face mounting medical costs. Legal funding helps plaintiffs afford necessary treatments, surgeries, and therapy without worrying about immediate out-of-pocket expenses.

Levels the Playing Field Against Insurers

Large corporations and insurance companies have the financial resources to delay settlements, hoping plaintiffs will accept low-ball settlement offers out of desperation. Legal funding helps plaintiffs hold out for a fair settlement by giving them the financial stability to continue their legal fight. With this cushion, their attorneys can do their jobs and secure just compensation.

Avoids Traditional Loan Requirements

Traditional loans often require income and/or asset verification and employment. Many plaintiffs simply cannot qualify for traditional lending solutions. Without legal funding, some plaintiffs resort to unsecured debt transactions such as high-interest credit cards or personal loans to stay afloat. Legal funding helps plaintiffs avoid these costly alternatives, as repayment is only required if they win their case.

Legal Funding Helps Plaintiffs by Reducing Financial Stress

Lawsuits are stressful, especially when financial hardship is involved. They also take time as legal system delays are inherent in the process. This is especially true when lawsuits involve severe injuries which make cases more complex. Legal funding helps plaintiffs focus on their recovery and case without constantly worrying about bills and expenses.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Who Qualifies for Legal Funding?

Legal funding is available to plaintiffs involved in various types of cases, including:

Personal injury lawsuits
Wrongful death claims
Employment disputes
Medical malpractice cases
Product liability lawsuits

In fact, most plaintiffs who are represented by attorneys on a contingency fee basis (they earn a legal fee based upon a successful outcome) can apply for lawsuit loans. Eligibility is primarily based on the strength of the case, not the plaintiff’s credit score or income. This is because funders invest on the case’s outcome, not the plaintiff’s ability to repay.

How to Apply for Legal Funding

The lawsuit loan process is simple:

Submit an application – Plaintiffs provide basic case details to a live lawsuit loan representative who screens the applicant and takes down basic information.
The Paper Chase – Once pre-qualified, documents are requested from the plaintiff’s counsel.
Attorney cooperation – Legal funding helps plaintiffs the best when their attorneys participate in the process. In fact, attorney cooperation in lawsuit funding is required. The funding company reviews case documents with the plaintiff’s lawyer.
Approval and funding – When approved, a contract is drafted and sent to the applicant. Upon receipt, funds are sent quickly—often within 24-48 hours.

Legal Funding Helps Plaintiffs When Needed

Legal funding helps plaintiffs by providing crucial financial support during litigation. Whether covering daily expenses, medical bills, or enabling plaintiffs to reject low-ball settlement offers, lawsuit funding ensures justice isn’t compromised by financial hardship. If you’re involved in a lawsuit and need financial assistance, exploring legal funding options can be a game-changer in your pursuit of fair compensation.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Apply Now

March 17, 2025 by Paul Coppola

Serious Injury Lawsuit Loans – A Financial Lifeline for Long, Drawn Out Cases

Personal injury claims which involve significant medical expenses and serious injury can result in substantial recoveries. The rub is these cases are generally more complex and thus, take a long time to resolve. Extensive medical treatments, legal system delays, and complex negotiation processes all contribute to the lengthy legal battle. Serious injury lawsuit loans provide immediate financial support for plaintiffs facing these challenges. In this post, we explore severe injury lawsuit loans and discuss why they are tailor made for use as a financial lifeline for complex injury lawsuits.

What are Severe Injury Lawsuit Loans?

Lawsuit loans are specialty financial transactions where plaintiffs sell a portion of their future recovery in a lawsuit in return for an immediate sum of cash. Because these deals are a “sale” of future proceeds, lawsuit loans are not loans in the technical sense. Although loans imply repayment at some point in the future, lawsuit loans are only repaid if the case is successful. The differences between personal loans and lawsuit loans are the main reason why lawsuit loans are priced differently. Lawsuit loans carry a complete risk of loss in the event the case is unsuccessful.

The Need for Severe Injury Lawsuit Loans?

Severe Injury Lawsuit Loans, also known as pre-settlement funding or lawsuit advances, are non-recourse cash advances provided to plaintiffs with pending personal injury lawsuits. They are specifically designed for individuals who need to meet immediate financial concerns while their cases move through the legal system.

They are particularly suitable for plaintiffs who have sustained catastrophic injuries, such as:

Traumatic brain injuries (TBI)
Spinal cord injuries
Amputations
Severe burns
Permanent disabilities

This is because severe injuries like the above often prohibit plaintiffs from working to pay their bills. Severe injuries also require extensive treatment which contributes to legal system delays which prolong the time it takes for plaintiffs to receive adequate compensation. Unlike traditional loans, Severe Injury Lawsuit Loans are only repaid if you win or settle your case. If you lose, you owe nothing.

How Do Lawsuit Loans Work?

The process for securing a severe injury lawsuit loan is simple:

Application: You fill out a brief application and provide details about your case.
Attorney Collaboration: Your attorney shares case documents and details with the funding company.
Evaluation: The funding company evaluates the strength of your case and estimates its potential value.
Approval & Funding: Once approved, you receive cash—often within 24-48 hours.

Since repayment is contingent on your case outcome, there’s no credit check, income verification, or upfront fees.

Benefits of Severe Injury Lawsuit Loans

There are many lawsuit loan advantages. These include:

Immediate Financial Relief: Cover medical bills, rent, utilities, and daily living expenses while your lawsuit progresses.
No Risk: You only repay if you win your case.
No Monthly Payments: Unlike traditional loans, repayment happens in one lump sum after settlement.
Stronger Negotiation Power: Avoid settling early for a lower amount due to financial pressure. Low ball settlement offers are often used against plaintiffs who experience financial distress by insurers who want to minimize their exposure.

Lawsuit Funding Disadvantages

There are also some legal funding disadvantages as well. These might include:

High Interest Rates & Fees – Lawsuit loans often come with higher cost than traditional lending.
Lawsuit Loans are Often Not Regulated Like Traditional Loans – Many jurisdictions do not regulate lawsuit loans the same way as consumer loans.
Erodes Ultimate Recovery – Since repayment is taken from the settlement, a large chunk of the settlement may go to paying back the loan and fees, leaving less for the plaintiff.
Limited Availability – Not all cases qualify for lawsuit loans. Companies usually only lend if the case is strong and likely to win, leaving some plaintiffs without access.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Common Lawsuits Eligible for Severe Injury Lawsuit Loans

Many severe injury lawsuit loans are attached to common personal injury lawsuits arising from:

Auto accidents
Workplace accidents
Medical malpractice cases
Premises liability (slip & fall) accidents

Although some accidents involve less serious medical conditions, some accidents do result in severe and permanent injury. These conditions make lawsuits more complex. More lengthy litigation often results, sometimes causing financial trouble as plaintiffs try to make ends meet.

Are Severe Injury Lawsuit Loans Right for You?

If you’re suffering financially after a devastating injury and your case is likely to result in a favorable settlement, a Severe Injury Lawsuit Loan can provide the support you need to stay afloat. Always consult your attorney before applying to ensure it aligns with your legal strategy.

Severe injury lawsuits can be draining physically, emotionally, and financially. Severe Injury Lawsuit Loans offer a solution to help plaintiffs maintain financial stability while lawyers fight for just compensation. If you’re in need of immediate funds without taking on risk, pre-settlement funding may be the right choice.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Get the financial relief you need today. Learn more about how Severe Injury Lawsuit Loans can help you. Thank you for your interest in Fair Rate Funding.

Apply Now

February 26, 2025 by Paul Coppola

How to Borrow Money from a Lawsuit: A Complete Guide

Lawsuit plaintiffs are generally happy to learn they can borrow money from their lawsuits to cover expenses while they wait for settlement. Lawsuit funding, also known as pre-settlement funding or legal funding, allows plaintiffs to access a portion of their expected settlement in advance. In this post, we examine the question: “Can I borrow money from my lawsuit” and discuss the process, benefits, and things to consider while entertaining lawsuit funding as a possible liquidity solution.

What Is Lawsuit Funding?

Lawsuit funding is a specialty financial transaction where cash is advanced to plaintiffs in pending lawsuits. Unlike traditional loans, lawsuit advances are non-recourse, meaning the advance is only repaid if the case is successful.

This unique feature of legal funding is based on their structure. Legal funding is the sale of property rights in future compensation. Lawsuit loan companies purchase part of the recovery ahead of time. If the lawsuit is lost, what was purchased is essentially worthless. Thus, no repayment is required.

Lawsuit Funding Costs

Lawsuit loan repayment amounts utilize lawsuit loan percentage rates and depend on the amount of time which elapses between the date of funding and disbursement. The longer the case takes to resolve, the higher the repayment becomes. Due to the increase in risk, lawsuit funding companies “charge” a larger percentage (as calculated on the contract amount) than would otherwise be available on other traditional loan products. Generally, plaintiffs can expect to pay 36-40% on the contract amount every year until the case’s resolution.

Who Can Borrow Money from a Lawsuit?

Not all cases qualify for lawsuit funding. Typically, plaintiffs involved in personal injury lawsuits, wrongful death claims, medical malpractice, or employment disputes can apply. Review of a list of lawsuit loan case types might be helpful to the curious.

Lawsuit Loan Approvals

The strength of the case and the likelihood of winning a settlement play a crucial role in determining lawsuit loan eligibility. Other factors include:

Representation by counsel
Attorney participation in the lawsuit loan process
Signing of a lawsuit loan agreement

Lawsuit Loan Process

The lawsuit loan process is fairly simple and straightforward. Legal funding can also be quick. Since many clients are in need of immediate funds, legal funding companies streamline their approaches to accommodate their clients’ needs.

Application – it all begins with an application where legal funding professionals ask and clients answer specific questions about the claim/lawsuit.
Chasing the Documents – once a client’s case is pre-qualified, staff requests various documents regarding liability, insurance coverage and damages.
Underwriting – legal funding underwriting is tasked to evaluate the case’s likelihood of success. Underwriters review the provided documents, contact the representing attorney and make a decision based upon their findings.
Document Execution – when approved, clients receive a contract for their review. Once signed by the plaintiff and their counsel, the application is moved to funding.
Funding – executed documents are received and funds are sent via overnight delivery or electronic funds transfer (EFT).

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

How to Borrow Money from a Lawsuit

The steps on how to borrow money from a lawsuit are as follows:

Find a Lawsuit Funding Company – Research different funding companies to ensure they are transparent and have reasonable terms. Reputable lawsuit funding companies will always be transparent about the cost of funding.
Apply for Pre-Settlement Funding – Submit an application online or over the phone with details about your case.
Case Evaluation – The funding company will review your lawsuit and consult with your attorney to determine the strength of your claim.
Approval and Funding – If approved, you’ll receive a cash advance, typically within 24-48 hours.
Repayment – You only repay the advance if you win your case. The repayment is deducted from your settlement amount.

Benefits of Borrowing Money from a Lawsuit

Borrowing money from a lawsuit yields the following benefits:

Immediate financial relief – lawsuit funding helps cover living expenses, medical bills, and/or any other pressing financial concern.
Risk free – legal funding allows plaintiffs to partially transfer the risk of loss to a funding company since the advance is not repaid if the case is lost.
Flexible use of funds – there are no restrictions on the use of legal funding. The money is yours to use as you see fit.

Things to Consider Before You Borrow Money from a Lawsuit

Legal funding opponents often state lawsuit loans are predatory. That is, since legal funding terms are different than personal loans, they take advantage of desperate plaintiffs. Lawsuit loan criticisms are generally voiced not from plaintiffs themselves, who willingly enter into these transactions, but from parties who are indirectly affected. These might include insurers or defense attorneys who use their financial position as leverage, forcing plaintiffs to often accept “low ball” settlement offers simply to avoid immediate financial discomfort.

As discussed above however, lawsuit funding and personal loans are entirely different financial products. As such, some things to consider naturally arise. Some perceived lawsuit loan disadvantages can be:

Lawsuit loans can be expensive, especially if cases drag on longer than anticipated.
Some plaintiffs may borrow more than they truly need, forgetting that the repayment amount will come directly out of their settlement.
Lawsuit loans are repaid from the final recovery amount. This reduces the amount a plaintiff ultimately receives.
Lawsuit loans are generally unregulated.
Not all cases qualify.

Can You Borrow Money From a Lawsuit?

The short answer is yes, but hopefully this post helps in understanding the true place legal funding has in the legal landscape. If you need financial support during a legal battle, borrowing money from a lawsuit can be a viable option. However, it’s essential to understand the costs and choose a trusted funding company. Always consult with your attorney before making a decision.

By carefully considering your options, you can make an informed choice that supports your financial well-being while you wait for your settlement.

Thank you for your interest in Fair Rate Funding.

Apply Now

February 18, 2025 by Paul Coppola

Are Lawsuit Loans Worth It? Understanding the Costs and Benefits

Plaintiffs who face financial strain might think they are out of options. Those who consider lawsuit loans as a solution might wonder: “Are lawsuit loans worth it?” In this post, we examine this important question and identify both the benefits and disadvantages of legal funding.

What Are Lawsuit Loans?

Lawsuit loans, also known as pre-settlement funding, are cash advances against a lawsuit’s expected settlement. Lawsuit loans provide plaintiffs with immediate financial relief during ongoing legal cases – often on the same day. These loans are non-recourse, meaning the advance is only repaid upon a successful resolution to the case. If the case is lost, no repayment is made, nor can the lawsuit “lender” pursue collection against a plaintiff personally.

Lawsuit loans’ non-recourse nature is based upon their design. Instead of a plaintiff borrowing a sum of money, they sell a portion of the lawsuit’s future recovery. If they fail to recover, what was purchased, (part of the recovery) is essentially worthless and no repayment is required.

Non-recourse financing is particularly appealing when plaintiffs are unable to work, have poor credit, or otherwise cannot qualify for personal loans. Lawsuit loans serve as a financial lifeline to bridge the gap between a lawsuit and its ultimate resolution.

The True Cost of Lawsuit Loans

Although lawsuit loans provide vital financial support, they can be costly. Interest rates and fees for lawsuit loans are typically higher than traditional loans. Depending on the lender and the duration of your case, the effective annual percentage rate (APR) can range from 30% to 60% or even higher depending upon a variety of factors.

Cost is a main lawsuit loan disadvantage. Because repayment amounts generally increase over time, some plaintiffs find themselves repaying more than they received. This is due to the time value of money and does not factor in the value of plaintiffs’ use at the time of funding. For example, if a plaintiff borrows $10,000 and the case settles after 3 years, the payoff could be over $20,000 after interest and lawsuit loan fees.

Benefits of Lawsuit Loans

Of course, there are lawsuit funding advantages as well. Most plaintiffs turn to lawsuit loans as a last resort. Yet the advantages can make financial sense. These include:

Immediate Financial Relief: Lawsuit loans provide quick cash to cover essential living expenses, medical bills, and legal costs.
Non-Recourse Structure: You only repay the loan if you win your case, reducing financial risk.
More Time for Negotiation: With financial pressure alleviated, you can afford to wait for a fair settlement rather than accepting a low-ball offer.
Creditworthiness Not a Factor: Plaintiffs offer a portion of the lawsuit proceeds in return for the advance. Thus, creditworthiness, income, employment status, and asset verification are not relevant.

Other Drawbacks of Lawsuit Loans

In addition to the cost as discussed above, lawsuit loans do have some disadvantages as well. These include:

Reduced Final Payout: The interest rates and fees can consume a significant portion of your settlement. After repaying the loan and accrued interest, you may receive much less from your settlement.
Not Always Necessary: If you can manage your expenses through other means, a lawsuit loan may not be the best option. Most plaintiffs explore other liquidity options before they decide if lawsuit loans are worth it in their specific circumstances.

If You Have Any Questions – Call 888-964-2224

Complete a Free Application Form Now

What You Need to Know

If you want to get a lawsuit loan, you should consider comparing lenders from multiple companies. Reputable lawsuit funding companies are transparent about their products. If a company is not forthcoming, you have the option to search elsewhere.

Also, take time to understand lawsuit loan contract terms. Although specialty finance agreements, lawsuit loan transactions are not really that complex. They are simply a sale of a portion of your settlement/recovery. Yet you should be aware of what you are getting into. Be sure to clarify interest rates, fees, and repayment conditions before signing.

Finally, be sure to explore lawsuit loan alternatives as they may offer terms that will better serve your interests.

Lawsuit Loan Eligibility

Unfortunately, not everyone qualifies for lawsuit loans. Plaintiffs must have an active claim/lawsuit. They also must be represented by an attorney on a contingency fee basis (they are only paid legal fees if the case is successful). Finally, the likelihood of success is the main factor in lawsuit loan approvals. The stronger the case, the better the chances it will meet lawsuit loan eligibility requirements.

Keep in mind that settlement value must be enough to justify funding. This is especially true when plaintiffs seek multiple lawsuit loans on the same case.

Are Lawsuit Loans Worth It?

Whether a lawsuit loan is worth it depends on your financial situation and the expected timeline of your case. If you face urgent financial needs and have no other resources, a lawsuit loan can provide critical relief. However, if you can manage without one, avoiding the high fees and interest will leave you with a larger settlement in the end.

Although lawsuit loans can be a lifeline during financial hardship, it’s crucial to weigh the costs against the benefits. By carefully considering your needs and exploring all options, you can determine if a lawsuit loan is truly worth it for your situation.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Thank you for your interest in Fair Rate Funding.

Apply Now

January 28, 2025 by Paul Coppola

How to Get a Lawsuit Loan

If you’re in the middle of a pending lawsuit and face financial stress, you may wonder how to get a lawsuit loan. Lawsuits can take months, even years, to resolve, leaving many plaintiffs struggling to cover daily expenses like rent, medical bills, or car payments. Lawsuit loans, also known as pre-settlement funding, offer a financial lifeline to help plaintiffs stay afloat until their cases resolve. In this post, we examine how to get a lawsuit loan and break down everything you need to know about these specialty financial products.

What Is a Lawsuit Loan?

Lawsuit loans are cash advances to plaintiffs who are waiting for their lawsuits to resolve – either through trial or settlement. Although referred to as lawsuit “loans”, there are some distinct differences between personal loans and lawsuit loans. The most important of these is that lawsuit loans are non-recourse. This means plaintiffs only repay the advance if they are successful.

Technically, lawsuit loan contracts are a sale of a partial interest in the future proceeds of the case. As such, they are considered a partial transfer of property rights. It stands to reason that if someone purchases something, and that something becomes valueless, then it was a bad purchase. If a lawsuit fails, what the lawsuit lender purchased is worthless. The funder has no recourse against the plaintiff personally for repayment.

How Does Getting a Lawsuit Loan Work?

Application Process: The first step in getting a lawsuit loan is applying with a lawsuit funding company. Plaintiffs must provide details about the case, including the type of lawsuit and the estimated settlement amount.
Case Evaluation: The funding company reviews the case by working with the attorney, who generally provides the necessary paperwork. They assess factors like the strength of the claim, the estimated timeline for settlement, and the potential payout.
Approval and Funding: If approved, plaintiffs receive a cash advance, usually within 24 to 48 hours via overnight courier (FedEx or similar) or Electronic Funds Transfer (EFT). The amount available typically depends on the expected settlement value.
Repayment: Once settled, the lender is repaid from the settlement funds, including the principal and any agreed-upon fees or interest. If unsuccessful, the plaintiff is not obligated any further.

Benefits of Getting a Lawsuit Loan

Financial Relief: Lawsuit loans help cover essential expenses like medical bills, rent, or groceries while the case is pursued.
No Risk: Because lawsuit loans are non-recourse, there is no risk to plaintiffs.
Quick Access to Funds: Many lenders can provide funds within a day or two of approval, offering quick financial relief.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Things to Consider

Lawsuit loans are an option for plaintiffs and can be helpful in certain situations. They are not without cost. Here are some factors to keep in mind:

High Fees and Interest Rates: Lawsuit loans can come with high interest rates and fees, which can eat into what plaintiffs ultimately receive.
Need Evaluation: Lawsuit loans are used to cover essential expenses. Lawsuit loans are usually a last resort for plaintiffs in need.
Compare Lenders: Not all lawsuit loan companies are the same. Prudent plaintiffs compare terms, fees, and customer reviews before making a decision.
Attorney Cooperation: There is no funding without attorney cooperation. Lenders need information about the case and attorney involvement is crucial. Attorneys must also promise to repay the advance at the time of disbursement.
Lawsuit loans have high qualification requirements: Lawsuit loans are non-recourse. Accordingly, lawsuit funding underwriters may deny lawsuit loan applications if its outcome is uncertain.

Who Can Qualify?

Getting a lawsuit loan is typically an option for plaintiffs involved in cases like:

Personal injury claims
Medical malpractice lawsuits
Employment cases
Civil Rights lawsuits
Product liability cases

To qualify for lawsuit loans, cases must have a strong chance of success, and plaintiffs must be represented by an attorney.

How to Choose the Right Lawsuit Loan Company

When getting a lawsuit loan, it’s essential to work with a reputable funding company. Smart plaintiffs look for lenders that:

Offer transparent terms and conditions
Charge reasonable lawsuit loan rates
Have positive reviews and testimonials
Provide responsive customer service such as live lawsuit loan representatives

Final Thoughts on Getting a Lawsuit Loan

Getting a lawsuit loan can provide much-needed financial relief during a stressful time. However, it’s essential to understand the costs and terms before making a decision. Prudent plaintiffs work closely with their attorneys to determine whether a lawsuit loan is appropriate and to ensure the choice of a reputable lawsuit funding company. By doing research, plaintiffs can make an informed choice and focus on winning their cases without added financial stress.

Apply Now

December 10, 2024 by Paul Coppola

Lawsuit Loans Help Your Lawsuit – Here’s How

Engaging in a lawsuit can be both emotionally and financially draining. For plaintiffs facing mounting bills and daily expenses, lawsuit loans offer a financial bridge to ease the pressure. These loans can provide significant benefits, particularly when used strategically. In this post, we explore how lawsuit loans help your lawsuit and why they are worth considering.

Reduces Financial Pressure During Litigation

One of the most immediate ways lawsuit loans help your lawsuit is by alleviating the financial stress of everyday expenses. When you’re waiting for your case to settle, bills like rent, utilities, or medical costs don’t stop. A lawsuit loan gives you the financial breathing room to focus on your case rather than worrying about how to make ends meet.

Lawsuit Loan Basics

Lawsuit loans, also known as legal funding or pre-settlement advances are financial transactions where plaintiffs sell a portion of their recovery ahead of time. They are used most often in civil litigation where legal system delays result in many months or even years to elapse before plaintiffs receive compensation.

Unique Lawsuit Loan Structure

Lawsuit loans are structured as a sale of future property rights and as such are not actually loans in the traditional sense. While traditional lending requires repayment (with interest) at some point in the future, lawsuit loan repayment is entirely dependent upon a successful outcome. In other words, if a lawsuit fails, lawsuit loans are not repaid.

According to the terms of most lawsuit loan contracts, repayment must come from the settlement proceeds themselves. Thus, they are often referred to as non-recourse funding – meaning lawsuit lenders have no recourse against plaintiffs personally. Plaintiffs who receive lawsuit funding and later lose their lawsuit are not responsible for repayment.

This structure ensures that plaintiffs aren’t burdened with additional debt if their case doesn’t go as planned, making it a relatively low-risk option for those in need.

Lawsuit Loan Purpose

Lawsuit loans help plaintiffs pay their expenses while their cases matriculate through the legal process. They are often used to pay living or other expenses while cases progress. This way, plaintiffs can resist accepting low-ball settlement offers due to personal financial trouble.

How Lawsuit Loans Help Your Lawsuit

Lawsuit loans benefit plaintiffs with immediate cash flow. However, lawsuit loans can help your lawsuit as well. Below are the top ways lawsuit loans help your lawsuit:

Reduces Financial Pressure During Litigation

Allow Time for a Fair Settlement

Defendants and insurance companies often exploit plaintiffs’ financial hardships by offering low-ball settlements. Lawsuit loans help your lawsuit because you can afford to wait for a settlement that reflects the true value of your claim. This ability to hold out can often lead to a significantly higher payout.

Your legal team may need time to build a compelling case, gather evidence, and negotiate effectively. Lawsuit loans help your lawsuit by ensuring you don’t rush the process out of financial desperation. With less pressure to settle quickly, your attorneys can pursue the best possible outcome for your case.

In some cases, plaintiffs use lawsuit loans to cover litigation costs, such as expert witnesses, depositions, or court fees. Investing in these elements can strengthen your case, increasing the likelihood of a favorable outcome. By providing the resources you need to present a strong argument, lawsuit loans help your lawsuit directly.

Medical Treatment and Expenses

Lawsuit loans help your lawsuit when used to pay for medical treatment and surgery costs. Accident victims often require extensive medical treatment. Diagnostic testing, surgical intervention, physical therapy, and rehabilitation can be expensive, especially for serious injuries. Some injured plaintiffs compile hundreds of thousands of dollars in medical debt.

Medical costs can be paid with lawsuit loan advances after treatment but also can be paid up-front with programs known as surgery lawsuit loans. Surgical lawsuit funding negotiates an up-front fee for surgery and pays the provider directly. When the case is resolved, the cost for the surgery is repaid. When surgery is not offered under a letter of protection, lawsuit loans can help your lawsuit by paying for necessary surgical procedures at the time of treatment.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Who Can Benefit Most from Lawsuit Loans?

While there are many lawsuit loan case types, these transactions are particularly helpful for plaintiffs involved in lawsuits such as:

Personal injury
Medical malpractice
Wrongful death
Employment disputes

This is because the above case types often involve a reduction or elimination of incoming household revenues. Personal injury accidents may prohibit plaintiffs from working as they did before the accident. Likewise, wrongful employment cases can reduce a plaintiff’s income. Lawsuit loans help your lawsuit by helping you with financial support.

Tips for Choosing a Reputable Lawsuit Loan Provider

Reputable lawsuit loan companies are transparent with their terms and conditions. Fortunately, shopping for lawsuits has never been easier. Look for lenders with transparent terms and competitive rates. You can also search a lender’s Better Business Bureau profile for more information.

You can also consult your attorney to make sure your case is a viable case for lawsuit funding solutions. Many attorneys have working relationships with lawsuit lenders. This can aid in the search and offer the most competitive terms available.

Finally, make sure you’re clear on repayment obligations and potential costs. Virtually all you need to know about lawsuit loans is discussed in our lawsuit loan blog articles. If you cannot find the answer you are looking for, simply give us a call or contact us online. A live lawsuit loan representative will be happy to assist you.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Conclusion

For many plaintiffs, lawsuit loans help their lawsuit by providing the financial stability needed to pursue justice without compromising their daily lives. While these loans should be used carefully and as a last resort, they can be a powerful tool to level the playing field against well-funded defendants.

By choosing the right lender and using the funds strategically, lawsuit loans can be an asset in securing a fair and favorable settlement.

Thank you for your interest in Fair Rate Funding.

Apply Now

December 4, 2024 by Paul Coppola

Understanding Up Front Lawsuit Funding Fees

If you’re researching lawsuit loans to cover expenses while waiting for your case to settle, you may have come across the term “up front lawsuit funding fees.” In this post, we examine the use of these fees and hopefully gain a better understanding of their place in the legal landscape.

Lawsuit Funding Basics

Lawsuit funding, also known as lawsuit loans or pre-settlement funding, are specialty financial transactions with advance cash to plaintiffs involved in pending litigation. Although referred to as lawsuit loans, these deals are actually a sale of the potential future recovery in a case. Thus, they are not loans in the traditional sense. One major difference is that repayment only occurs if the case is successful. If the case is lost, no repayment is due.

Settlement loans are most commonly used in personal injury cases, including automobile accidents, medical malpractice, and premises liability cases. They provide financial relief to plaintiffs who need money for daily expenses, medical bills, or other urgent costs while their legal cases progress.

What Are Up Front Lawsuit Funding Fees?

Up front lawsuit funding fees refer to the charges some lawsuit funding companies require borrowers to pay before receiving an advance on their expected settlement. These fees may cover administrative costs, application processing, or other services provided by the lender. While most reputable lawsuit funding companies DO NOT charge these fees, it’s important to clarify this when discussing terms with a lawsuit lender.

Common Types of Up Front Fees in Lawsuit Funding

The most common types of up front fees in lawsuit funding are:

Application Fees – Some lenders charge a non-refundable fee for processing your application and evaluating the merits of your case.
Origination Fees -This fee is a percentage of the funded amount, meant to cover the cost of finding the investment. Origination fees are sometimes payments to lawsuit loan brokers for their services.
Administrative Fees – These cover the cost of setting up your funding agreement and managing documentation.

Up Front Lawsuit Funding Fees Are Not Common Practice?

Many reputable lawsuit funding companies do not charge up front fees. Instead, they structure their costs as a portion of the settlement amount, payable only if you win your case. This type of arrangement—called “non-recourse funding”—is often more borrower-friendly, as it eliminates financial risk if your lawsuit is unsuccessful.

When comparing funding options, look for transparency in the fee structure and avoid companies with hidden or vague charges. Reputable lenders are upfront about their costs and typically don’t require payment until your case is resolved.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Avoiding Up Front Lawsuit Funding Fees

Here are some tips to avoid up front fees when exploring lawsuit funding options:

Search for Well Established Funders

Although lawsuit funding appeared in the legal landscape fairly recently (20 years or so), the business has evolved enough for industry leaders to adopt lawsuit loan best practices. These are designed to take the mystery out of the lawsuit loan process and offer transparency in the transaction.

Research Reputable Companies

Look for companies with lawsuit loan reviews and a clear fee structure. You can also ask your lawyer to recommend a company. Most plaintiff firms have funders they feel comfortable with. Attorneys who have a good working relationship with a lawsuit funder benefit both attorneys and clients.

Ask Questions

Before signing an agreement, ask about any up front lawsuit funding fees and whether they are mandatory. Reputable companies will not shy away from this information. If they do, it is possible they are not offering the best deal.

Read the Fine Print

Once a contract is prepared and forwarded for execution, carefully review the terms and conditions to ensure you understand the full cost of borrowing. A funder which requests up front payment of application, processing or other fees will likely have those conditions on the contract at the time of closing.

The Bottom Line

While most fundable lawsuits are similar, some are simply outside the box of your typical personal injury case. In these instances, up front lawsuit funding fees might be appropriate. However, in the overwhelming majority of scenarios, these fees are not part of the industry’s best practices. Clearly, it’s better to work with a lender that doesn’t require up front fees and only collects payment when your case is successful. After all, being short of cash is the very reason you seek lawsuit funding in the first place. Requiring up front fees creates an often necessary burden added to an already troublesome situation.

By thoroughly researching your options and asking the right questions, you can secure lawsuit funding that aligns with your financial needs while avoiding unnecessary costs.

Fair Rate Funding Costs and Fees

Fair Rate Funding NEVER charges up front lawsuit funding fees. In fact, our rates are among the lowest in the business.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Apply Now

November 19, 2024 by Paul Coppola

What are Lawsuit Loans? – Asked and Answered

Many people are curious about what lawsuit loans are and how they differ from traditional loans. Essentially, a lawsuit loan is a cash advance for plaintiffs expecting a settlement. The loan is secured against the potential future settlement, and repayment is only required if the plaintiff wins or settles the case. In this post, we explore the question: “What are lawsuit loans?”. We uncover what lawsuit loans are, how they work, their pros and cons, key factors to consider, and offer insights as to their use.

Understanding What Are Lawsuit Loans

A lawsuit loan, also known as legal funding or pre-settlement funding, is a cash advance provided to plaintiffs involved in pending lawsuits. Lawsuit loans are not loans in the traditional sense since repayment only occurs if the case is successful. Instead, they are a partial sale of the lawsuit’s future recovery. Because of this, lawsuit funding companies cannot pursue plaintiffs personally for repayment. Repayment must come from the settlement proceeds themselves. If the case is lost, no repayment is due.

Settlement loans are most commonly used in personal injury cases, including automobile accidents, medical malpractice, and workers’ compensation claims in some states. They provide financial relief to plaintiffs who need money for daily expenses, medical bills, or other urgent costs while their legal cases progress.

How They Work

The lawsuit loan process generally progresses through the following steps:

Application: Plaintiffs apply for funding through a pre-settlement funding “lender”. The application process involves providing information about the case and the attorney handling it.
Case Evaluation: The lender reviews the case details, focusing on its strength, potential settlement amount, and expected time frame. Unlike traditional loans, credit history or income levels are not key factors for approval.
Approval and Offer: If lenders see the case’s potential, an offer is made. How much funding is available depends on the estimated value of the case and other factors. The amount offered is usually a fraction of the anticipated settlement value. A general rule of thumb is 10-15% of the case’s prospective settlement value, if the case were to settle immediately.
Repayment: If the plaintiff wins or settles the case, the lender is repaid from the proceeds and in accordance with the lawsuit loan contract. If the case is lost, the plaintiff owes nothing.

This non-recourse feature makes legal funding unique, as they pose a lower financial risk to plaintiffs compared lawsuit loan alternatives.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Pros and Cons of Legal Funding

Understanding the pros and cons of pre-settlement funding also helps understand what they are. When considering a lawsuit loan, plaintiffs benefit from weighing the benefits and drawbacks to make an informed decision. Lawsuit loan benefits include:

Immediate Financial Relief – Legal funding provides immediate cash, which are normally used to cover living expenses, medical bills, or other expenditures during the lengthy litigation process.
No Credit Checks – Credit scores are irrelevant for pre-settlement funding approvals. Access to legal funding is based on the case’s merits of the case, not the plaintiff’s credit score or income. Thus, plaintiffs who might not qualify for personal loans can still obtain lawsuit funding.
Non-Recourse: If the lawsuit yields no recovery, no repayment is made. This makes lawsuit loans a risk free option for plaintiffs.

Lawsuit loan critics point to multiple problems. These include potentially high costs associated with the additional risk lawsuit lenders assume in the transaction. Lawsuit loan rate structures can vary but most reputable lawsuit funding companies will charge 18% every six-months after the advance date. Lawsuit loan fees can also contribute to the final repayment amount.

While costs are generally higher than personal loans, legal funding offers a specialty marketplace in which plaintiffs can sell a portion of their lawsuit prior to recovery. This service has risk and is priced accordingly. Characterizing lawsuit loans as predatory simply mislabels the free market’s response to plaintiffs’ legitimate needs.

What Are the Lawsuit Loan Requirements?

To qualify for a pre-settlement funding, plaintiffs typically need to meet several requirements:

Active Legal Case: You must have an ongoing lawsuit with a potential for monetary compensation.
Attorney Representation: An attorney must be handling your case, usually on a contingency fee basis (i.e., they get paid only if the case wins).
Strong Case Merits: The case needs to show a reasonable chance of success, as this determines the lender’s willingness to provide funding.

Types of Lawsuit Loans

Pre-settlement funding comes in several varieties, each catering to different legal needs:

Plaintiff Pre-Settlement Funding: This is the most common type, providing cash advances while the case is ongoing. The money is repaid if the case ends favorably.
Plaintiff Post-Settlement Funding: For plaintiffs who have already reached a settlement but are waiting for the payout, post-settlement funding provides a bridge loan.
Attorney Funding: This type supports law firms working on contingency, helping them cover costs related to case preparation.

Is a Lawsuit Loan Right for You?

Lawsuit loans are financial tools designed to help plaintiffs manage expenses during the course of a legal case. They offer significant benefits by providing non-recourse funds but come with high costs that can affect the final settlement amount. Understanding what legal funding is, how it operates, and what factors to consider can help you make a sound decision tailored to your financial needs during a legal battle.

Deciding whether to take a lawsuit loan requires a careful assessment of your financial situation and case prospects. If you have any questions regarding pre-settlement funding, give us a call at 888-964-2224. A live lawsuit loan representative will pick up the phone and answer all your questions.

Why Choose Fair Rate Funding

You obviously have a choice in who you use for legal funding. We offer:

Simple and Easy Process – Approval only on the strength of your case.
Risk – Free Proposition – Only repay if you win your case.
Rapid Approval and Funding – Approvals often within 24 hrs.
Up Front Pricing – Absolutely no hidden fees.

Give us a call and learn about your options. We are here to help and are at your service.

Apply Now