How Does Pre-Settlement Funding Work?

If you’re injured in an accident that was the fault of someone else, you may rightfully assume this person or entity is going to pay for your medical expenses and other bills. By working with a personal injury lawyer, this should be the case. Yet, as your claim progresses, you may realize that the situation is taking much longer than you imagined.

You need your settlement for things like making up for lost income and paying for surgery. It is not uncommon for an accident to mean you are unable to afford even basic needs like rent, car payments, and food. You cannot wait months or even years to get your check. Sadly, insurance companies are known to play on this. They know you’re impatient and will purposely slow down the process to force victims to accept a lower fee. What should you do?

Pinnacle Legal Funding recommends you look into pre-settlement funding. This type of funding is available to those who need financial support during a personal injury lawsuit. Pre-settlement funding is a cash advance for victims who have a pending personal injury lawsuit and need money before the claim will be paid out. You can obtain this type of funding after an automobile accident, worker’s compensation case, or slip and fall, while you wait for your check from the at-fault party or their insurance company.

Although it is often referred to as a loan, pre-settlement funding is actually an advance against the eventual settlement you receive. There’s even more good news. This advance is considered what is known as “non-recourse.” This means that if you lose your case, you are not required to pay back the money. The funding company will only collect on the loan if you win your case, or obtain a settlement. There is also no interest rate and no monthly payments owed. This is risk-free money!

The way you pay back this funding is when you eventually get your settlement check, the company who lent you the money takes a portion. Don’t worry that it will be too much. A reputable pre-settlement legal funding company will only charge you a small percentage of your final settlement. It is important to carefully read the terms of the funding to ensure they’re beneficial for you. Never sign your name to something you don’t understand.

There is no limitation on how you spend the pre-settlement funding. Some victims use the money to pay off previous debts, cover mortgage or rent payments, pay medical bills, or simply use it for general day-to-day living expenses.

If you’re tired of waiting for your settlement check, pre-settlement funding can help alleviate your financial burdens. When the check does eventually come in, you’ll pay the funding company back. It couldn’t be any easier to get the money you have coming to pay for your needs now. Don’t wait any longer for the money that is yours.