Lawsuit loans, pre-settlement funding, personal injury loans, settlement advance, legal funding—these are just a few of the different names we use to refer to settlement loans. If you are on our web page, you have probably heard of them before.
Chances are, if you are here, that you are considering whether to take out a lawsuit loan. After all, doing so can alleviate a lot of the financial distress that comes along with filing a lawsuit and waiting for your case to settle. The lawsuit process takes time, and during that time, bills pile up. To top it off, neither you nor your lawyer has a crystal ball that can tell you when a case will settle. It’s all up in the air, but a settlement loan can remove some of the uncertainty surrounding your lawsuit by putting money in your pocket now.
But what exactly is a settlement loan? How does it work? What differentiates a settlement from other loans? Because lawsuit loans are a relatively new financial product, many of our clients come to us without much prior knowledge. At Nova Legal Funding, we believe that our clients should have all the relevant information available to them before they choose to take out a settlement loan through our company. That’s why we prepared this page: to help you understand what exactly happens with loans on settlements, and how they differ from “standard loans.”
Settlement Advance Vs. A Loan: What’s The Difference?
By far, the biggest difference between loans for settlements and loans for things like housing and cars is how collateral works in the process. Essentially, a settlement loan is a non-recourse loan, while a loan you might take out to purchase a car is a recourse loan. Read on for how those two types of loans differ from one another.
Most loans are a form of recourse loan. In a recourse loan, the collateral that a borrower puts up includes the entirety of their assets. Thus, if you take out a recourse loan and default on it, the lender can seek repayment through any of your assets. This includes your car, your house, or your savings. Whatever assets you have, a lender can reclaim to secure payment.
Settlement advances are non-recourse loans. With a non-recourse loan, the collateral is specified in the loan agreement. Then, in the event of a default, the lender can seek repayment only through the agreed-upon collateral. When you take out a non-recourse settlement loan through Nova Legal Funding, the collateral you put up is your eventual settlement of your case. That’s it—nothing else.
This means that if you are unable to settle your case or lose your case in court, there is no collateral. So what happens if you do lose your case? If you lose your case or fail to settle out of court, you don’t have to repay us a single penny. This is why settlement loans are so powerful: they are a relatively risk-free proposition for any plaintiff in a lawsuit in need of an immediate cash transfusion.
How Do I Know If A Settlement Loan Is Right For Me?
The only person who can decide whether a settlement loan is right for you is you. If you have bills piling up with interest and it looks like your case might take a while to settle, a settlement cash advance is a pretty good option. However, if you are financially secure and can bear the brunt of your bills as the lawsuit process unfolds, you may not need a settlement loan at the moment. It all depends on your household’s unique financial needs and circumstances.
Are You Interested In A Settlement Loan?
If a settlement loan is a good option for you and your loved ones to get through this tough time, Nova Legal Funding has you covered. All you need to do to get funds today is fill out our simple application. We will look at your application and contact your lawyer to verify and learn more about your specific case. Then we will come back to you with a loan offer as soon as possible. Our guarantee to you is this:
- No credit, employment, or financial check;
- If approved, have cash in your pocket within 48 hours of applying;
- A lowest rate in the industry guarantee; and
- You repay nothing if you lose your case.
Don’t let the interest pile up on your bills as you fight your case. Take control and give yourself some financial breathing room with a settlement loan from Nova Legal Funding. Apply today!