Lawsuit Settlement Cash Advances
The 3 most important questions plaintiffs need to ask before taking cash advance on their lawsuit settlement.
A lawsuit cash advance is a tool used by plaintiffs to receive funds against their pending personal injury claim. Plaintiffs utilize lawsuit cash advances to get a portion of their future settlement winnings today instead of later. Also known as lawsuit funding, this financial tool is designed to help struggling victims pay for their immediate financial obligations during litigation.
Economic support is especially important in cases of personal injury, as these types of lawsuits are costly and take longer to litigate. When your inability to earn wages leads to mounting bills, lawsuit funding companies are there to help while you wait for your case to settle. If you’re injured and in need of monetary assistance during your personal injury claim, consider applying for a lawsuit cash advance.
There are dozens of lawsuit funding companies that will promise you a cash advance on your future personal injury settlement award. Before reaching out to these firms, you must be aware that not all lawsuit funding companies are created equal. Fees, terms, and qualification factors can vary from one company to the next. The best way to know if you’re dealing with a legitimate and experienced funder is to ask the right questions.
Questions to Ask Before Applying for a Lawsuit Cash Advance
Will I be required to repay the cash advance if I lose my case?
If the answer you receive is anything but a clear and resounding ‘no’, it’s suggested that you move on. Under no circumstance should you have to repay the advance if you lose your case. A credible funder will only expect repayment if you win your case. Legal funding is suppose to be non-recourse, which unlike a loan, carries zero risk to the plaintiff. This is because repayment is contingent upon you winning a recovery — if you lose your case it should be your right to keep the money for free.
What fees and rates does your company charge?
Always know what you’re paying before signing up for a lawsuit cash advance. Most funding companies assign rates based on the risk-profile of a case, while other have fixed rates for all types of cases. You need to know if your interest accrues monthly or if a fixed payback is assigned for defined ranges of time. Always ask the company’s representative if the rate is compounded monthly or if a fixed payback is expected.
As a usual guideline, anything below 3.5% per month is considered industry standard. Be wary of lawsuit cash advance services that charge interest above 4%. Timing of when you’re applying for a lawsuit cash advance must also be taken into account. The earlier you apply during litigation, the larger the payoff will be once your case is settled one or two year down the line. A safe way to protect yourself is to find the lawsuit cash advance company with rates below 3% per month.
Does your company require early paybacks or monthly payments?
If the answers to either of these questions is ‘yes’, do not work with this company. As mentioned before, the non recourse nature of this transaction doesn’t require the usual terms that come with a regular loan. Therefore, you should never have monthly payments due, nor should you be pressured for early paybacks. As a general rule, legal funding companies will charge you nothing until—and if—your case is settled. That means: no application fee, no hidden fees, and and no monthly payments.
Apply for a Lawsuit Cash Advance Today
If your injuries are making it difficult to pay bills during your personal injury lawsuit, consider applying for lawsuit funding with Nova Legal Funding (NLF). NLF is a nationwide provider for plaintiffs in need of a lawsuit cash advance. Our representatives will answer all your questions within the first phone call. All types of cases qualify, ranging from car accidents to slip and falls and wrongful death cases.
Apply online by filling out the form at the top right-hand side of the page or call (800) 760-0703 to speak with a live representative. Our staff is available 24/7 and ready to provide you with the lowest lawsuit cash advance rates in the industry.