What is pre-settlement funding?
What does non-recourse mean? Is it a loan?
Pre-settlement funding, sometimes referred to as a “lawsuit loan," is not technically a loan, but rather a non-recourse advance. Non-recourse means that if the case is unsuccessful and you do not receive a settlement, you do not have to repay the funding company anything.
How much is my case worth? How much can I sue for?
Your case’s value is determined by three key items: damages, liability and insurance.
Damages
How much money can I be advanced?
Two important factors in estimating the value of a personal injury case are damages and the at-fault party’s insurance policy. The higher the policy limits, the higher the possible value of a case. A funding company will use the level of injury and policy limits to guide the proper amount of funding.
How long does it take to get an advance?
If approved, how do I get the advance?
How much will a pre-settlement advance cost me?
What it costs to borrow against a lawsuit can be a complicated question because there are numerous variables involved. The question most often asked is: “what do you charge?” From our experiences, the better question to ask is if I borrow X what will I have to pay back over certain periods of time. For example, what will I have to pay back after 6 months, 1 year, 2 years, etc.?
Should I take a large advance now or monthly advances to replace my lost salary?
If you lost your income due to an accident you may wish to replace it for a few months until you return to work. But should you take out a large 1-time advance to get by or borrow in monthly increments?
Why do lawsuits take so long to settle?
Can I take multiple advances on my case?
What is a “broker”? Is using one a good idea?
Can I pay back my advance before my case settles?
Yes, you are permitted to repay your advance at any time without penalty. However, some companies do often require a minimum repayment amount. For example, you wanted to repay your advance after 3 months and the fees on your advance are 3% per month, the contract may require a minimum repayment amount of 3,4 or 6 months. It is very important to carefully read and understand the terms and costs of your funding agreement prior to signing it to guard against unpleasant surprises after the fact.