Can You Guarantee Me Pre-Settlement Funding?

This article will explain why it is impossible to guarantee pre-settlement funding and what necessary information lenders like us need to determine your eligibility.

Understanding Pre-Settlement Funding

Pre-settlement funding provides plaintiffs with a cash advance on their pending lawsuit settlements. This financial assistance is often crucial for covering living expenses, medical bills, and other costs while awaiting the resolution of a case. However, guaranteed pre-settlement funding is often misleading because it suggests that lenders can offer advances without any prerequisites. This is simply not true.

Why Lenders Cannot Guarantee Pre-Settlement Funding

Lenders cannot guarantee pre-settlement funding because each case is unique and must be evaluated on its own merits. Offering advances without assessing the details would be financially irresponsible and unsustainable for funding companies and applicants alike. Here are some key reasons why no lender can provide guaranteed pre-settlement funding:

• Case merits. The strength of your case is a crucial factor. Lenders need to determine the likelihood of winning or settling your case successfully. They review evidence, legal arguments, and other pertinent details.
• Settlement amount. Lenders must estimate the potential settlement amount. This involves analyzing similar cases, the defendant’s ability to pay, and other financial considerations.
• Legal process. The stage of your lawsuit matters. Cases closer to settlement are often considered less risky than those in the early stages of litigation.
• Attorney cooperation. Lenders require cooperation from your attorney to obtain necessary documents and information. An attorney’s input is vital for understanding the case’s viability.

Simply put, there is no way for a lending company to determine if you are eligible for a pre-settlement loan except by examining the details of your case. And since every case is different, no funding can be guaranteed.

The Necessary Information for Pre-Settlement Funding

To accurately assess whether they can provide pre-settlement funding, lenders need the following information:

• Case documentation. This includes the complaint, motions, discovery responses, and other legal documents that outline the facts and status of your case.
• Medical records. If your case involves personal injury, medical records are essential. They help lenders understand the extent of your injuries and the potential for medical expenses to be covered in the settlement.
• Settlement history. Information about any settlement offers made by the defendant provides insight into the case’s value and the likelihood of future settlement offers.
• Attorney’s evaluation. A detailed evaluation from your attorney regarding the strengths and weaknesses of your case helps lenders make informed decisions.

All of this information is necessary to determine whether funding a case is low or high risk. Generally, the lower of a risk it is to fund a case, the more likely the applicant is to receive pre-settlement funding. However, like most funding companies, Nova examines these facts on a case-by-case basis.

What Nova Can Guarantee

While Nova cannot offer guaranteed pre-settlement funding, we do provide several assurances to our clients, including:

1. Lowest rates in the industry. We are selective and only fund people with strong cases, allowing us to offer the lowest rates without inflating interest rates to hedge our risk.
2. Low overhead. Unlike some of our big-name competitors, we’ve intentionally kept our operations small and streamlined. Our clients benefit from this efficiency in the form of the lowest rates in the industry.
3. No processing and application fees. Many of our top competitors charge high fees simply for processing your application. At Nova, we don’t charge these fees.
4. No compounded interest. Instead of compounded interest, we have a fixed fee every six months, with a cap between 24 and 36 months, depending on the specifics of the case. The fee we charge is based entirely on the strength of your case. The stronger your case, the lower the fee you will pay.
5. Competing offer guarantee. We guarantee to beat any competing offer. If we approve your case for funding, but you are offered a lower rate by one of our competitors, we’ll beat it, plain and simple.

At Nova, we are primarily focused on doing business ethically. That is why we not only offer lower rates, but also avoid charging unnecessary extra fees.

Nova’s Approach to Pre-Settlement Funding

At Nova, we understand the urgency and importance of securing financial assistance during a lawsuit. While we cannot offer guaranteed pre-settlement funding, we strive to make the funding process as transparent and straightforward as possible. Our team thoroughly reviews each application, taking into account the case’s merits and all necessary documentation to provide a fair assessment. Our commitment is to offer realistic and responsible pre-settlement funding options that support our clients through challenging times. By understanding why guaranteed funding is not feasible and what information is required, we believe plaintiffs can better prepare for the funding process and set realistic expectations.

If You Find Guaranteed Pre-Settlement Funding, It Is Probably Too Good to Be True

While the idea of guaranteed pre-settlement funding is appealing, it’s not practical due to the complexities of each legal case. Lenders need detailed information to assess the risk and potential of providing funding. So, if you find a lender that promises to fund you, proceed with extreme caution. It’s likely too good to be true.

At Nova Legal Funding, we’re dedicated to helping clients navigate this process with clarity and support, ensuring they have the necessary resources while awaiting their settlement. If you want to apply for pre-settlement funding or simply have questions about funding for your case, we’re here to help.