Pre-Settlement Funding May Just Be the Answer… But Choose Us for Our Reputation

You know you need cash, and especially if you’re paying big bucks for medical bills or you just find yourself in a tight spot, learning that you have won a settlement or judgment can be a godsend. The problem, though, is that while your money is on its way to you, you may not have much say in how it is delivered, or according to what schedule. In those instances, it may be the case that pre-settlement funding can help you. A pre-settlement or “lawsuit loan” is based on the understanding that the plaintiff is going to collect some judgment or settlement as a result of the legal action, but because the plaintiff (also the borrower) needs money now, not later after the case has run its course, he or she borrows against the anticipated settlement, then repays the loan when the settlement is finally received.

Lots of people in position to win a lawsuit are looking for liquid cash, both for the legal costs associated with their case and for medical and other bills associated with personal injury scenarios. Pre-settlement funding is a way of providing for those clients’ needs while seeing them through the difficult period during which their case is heard and settled or resolved. Pre-settlement funding is a loan made on a non-recourse basis. This means that the borrower does not have to pay back the loan to the lender if the settlement or judgment does not, in fact, eventually come through. The lender assumes considerable risk against the likelihood that the borrower will win his or her case, and as a result charges a relatively high interest rate compared to a more traditional or conventional form of financing and lending. Because the need for liquid cash by those considering pre-settlement funding is usually quite great, pre-settlement financing agreements are resolved quickly and the borrower has the cash in hand fast.

Pre-settlement funding pops up in the news when you least expect it. It’s also important to choose a reputable firm, such as Infiniti Funding, to provide it. It’s interesting to see the kinds of returns that some platforms are offering, too. There’s a crowdfunding litigation platform, for example, that claims to be offering some fairly amazing returns. According to Crowdfund Insider, the site is offering pre-settlement funding to plaintiffs that delivers numbers that don’t seem realistic in all cases.  Still, it’s worth thinking about, at least in the context of pre-settlement funding going mainstream and even invading the crowdfunding arena.

It’s also important to know what you’re getting when you consider presettlement financing, because not every lawsuit loan is actually a lawsuit loan. Let us explain. There is something called fair rate funding, which, while it is sometimes presented as the equivalent of, or interchangeable to, a lawsuit loan or pre-settlement funding, actually isn’t.  A pre-settlement lawsuit, as we have discussed, only pays out money to you if your case is successfully and the cash actually comes to you. The funding is contingent on you actually having a judgment.  By contrast, Fair Rate Funding is actually the “purchase of a portion of future recovery.” It’s not the same thing, and because of the extra element of risk, it has some of the highest approval rates with low monthly usage rates… or at least, that’s how it is presented. As in all things, it’s very important to find a reputable firm to represent you and to give you your funding regardless of what you choose. Failing to do so means you could get “taken for a ride” no matter what type of funding you choose, because the terms of the agreement are not favorable to you. Nobody wants that, and we most of all want to make sure your needs are met in an efficient fashion with as much integrity and fiduciary responsibility as you deserve.

Sometimes, popular culture and the news come together to thrust pre-settlement funding into the spotlight. For example, you may remember that Paul Walker, the beloved actor from the “Fast and Furious” movie franchise, was killed in a terrible car accident. Well, in Los Angeles, a prominent lawsuit settlement funding company took up Walker’s teenaged daughter’s case in order to bring a wrongful death lawsuit against the makers of the exotic Porsche that Walker was driving when he was killed. The terrible fire sent ripples through the automotive and filmmaking worlds. Ms. Walker’s settlement funding company seeks to prove that the car was poorly built, that it had poor safety measures installed, and that there were other design problems that led to the fire that killed Ms. Walker’s father. We will see how that case turns out, but the fact that a legal settlement funding company is involved is an interesting point. It’s entirely possible that the money needed to bring the suit is part of the financing and thus makes it possible for Ms. Walker to seek justice in the name of her father’s memory.

That is the point of pre-settlement funding. It is money when you need it. It is a means of securing the financing that you require, although it’s really your money to start with. You have a claim to the money, and that claim is used to give you the cash when you require it. You get the benefit of money sooner rather than later, and of course the company providing the pre-settlement loan makes money too. Everyone benefits, and thus important projects or your own life can move forward when previously the money simply was not there to accomplish this. You could argue, then, that pre-settlement funding is a means of getting on with your life, which is perhaps one of the most important functions of any service. Just remember that you need to find a reputable firm to provide that service to you, honestly and fairly.

We are that reputable firm. We will treat you with the respect that you are owed. Contact us today and let us help you get the funding that you need.

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