5 Tips Before Applying for a Lawsuit Loan
If you have a pending lawsuit or a settled case and are waiting to be paid you may consider taking out a “lawsuit loan.” Lawsuit loans are not actually loans, but considered pre-settlement funding or post-settlement funding. There are few important tips you should know before blindly applying.
Tip 1 – Lawsuit Settlement Funding Should be Your Last Resort
If you have any means of borrowing money other than taking funding, do it. Use all of your cash in your savings account, borrow money from friends and family, or borrow from your credit card. Lawsuit funding can be expensive because it’s not actually a loan.
Funding a lawsuit is risky because the case isn’t guaranteed to be successful and a settlement may not cover all the expenses.
Since lawsuit lending isn’t cheap, expend all other options of cheap cash. If you use money in your bank account it’s obviously free because it’s your money.