Is Pre-Settlement Funding a Good Idea?
Pre-settlement funding is more than a loan. It’s a cash advance for the money you’re set to receive from an accident case. If you have a pending personal injury lawsuit, then this funding can help you while your case is active. Regardless of how long the case takes to close, you can still obtain the funding you need to cover those expenses.
Understanding how pre-settlement funding works is important. If you’re struggling to pay your bills following a serious accident, reach out for help getting the funds you need now, not later, with the team at Money First Funding. We can help you determine whether pre-settlement funding is the right choice for you.
Using Pre-Settlement Funding
Many circumstances require funding quickly, rather than waiting for months to get funding through your settlement. This type of funding has been a valuable resource for those involved in serious accidents.
The average lawsuit for this type of case can take months or even years to resolve. This can be too long to cover some of the payments you need to make. It may be a good idea to have financial support during this time.
This money can be used for housing, living expenses, medical expenses, other costs associated with living, or taking care of injuries sustained. However, there are no requirements or stipulations for using the money—you have the power to use this money as you need it.
Without having financial resources, many individuals are forced to accept whatever offers they’re given. They might also be pressured to go back to work, or may not be able to give the time necessary to their attorneys to settle the case for an appropriate amount. Pre-settlement funding offers the resources you need to avoid this.
Is This an Actual Loan?
Pre-settlement funding is usually thought of as a loan, or referred to as a loan. However, it’s not a loan. It is a cash advance. This means that even if your case is unsuccessful, you do not have to pay back the amount you borrowed.
If there is no settlement on your case, the advance is yours to keep without paying the amount back. If you’re trying to choose between pre-settlement funding and a traditional loan, talk to your lawyer about whether pre-settlement funding may be the best choice for you.
How Pre-Settlement Funding Works
If you’re hurt in a car accident and you’re seeking funds for your recovery, pre-settlement funding providers like us can help. Before you act, you can give us a call to ask any questions you may have.
Pre-settlement funding offers those involved in a lawsuit an advance on their settlement. Your case will be reviewed and we may need to speak with your attorney regarding the settlement you may be entitled to before this offer is approved.
If you’re offered an advance, it is usually 10 to 15 percent of the settlement amount you expect from your claim in the aftermath of an accident. If you accept the amount, you just have to sign the contract with your attorney and you’re then sent the advance.
How is the Amount of the Advance Determined?
The pre-settlement funding you receive varies depending on the case and circumstances. There is no exact way to find out how much you may receive from an advance outside a discussion with our team and your attorney. However, we can provide an estimated value based on the specifics of the accident. The factors that are the most important include:
- Liability for the Accident – Responsibility for the accident matters. If you may be held accountable for part or all the damages in the accident, you may receive less funding or may be denied.
- Damages Sustained – The type of treatment that was necessary, the costs of this, and more can impact the amount you receive. The more severe the costs of your recovery, the more funds you may need to recover from your accident.
- Wages Lost – This can be a significant part of how much you receive. If you had to miss work because of the accident you were in or even if you were not able to return to work, that can impact you and the funds you need. It is important to estimate what future wages might be missed, not just what you already have missed out on.
- Insurance Coverage – The value of your case also depends on the insurance coverage that was available during the accident. If there was limited coverage from the insured, or if they were uninsured, it can impact what you’re eligible for.
There are other considerations to keep in mind when determining the amount of the case. These can include geographical location, future medical expenses, any pre-existing accidents or injuries before the accident, pain and suffering, and even more.
How Long Will the Pre-Settlement Funding Take?
If the funding company has all of the information they need to review the case, you’re able to get an answer within a day or so. They want to provide the solution to your financial issues as quickly as they possibly can.
If there are any issues with information sharing, getting your funding may take a little longer. Rest assured that your case will be tackled as soon as possible, so you can get the relief you need.
What if the Funding I Receive is Not Enough?
If your case takes a long time to settle, or if your expenses are high, you may find yourself without the full funding you need for your recovery. You may find yourself dealing with sudden, urgent expenses you didn’t expect.
It is important to only apply for pre-settlement funding when you absolutely need it. This can prevent a financial crisis in your life. However, if you’re struggling financially while your case is pending, it is still possible to apply with a second request for funding.
Settling Your Case and Paying Pre-Settlement Funding Back
When you settle a case, you will have to pay the pre-settlement funding back. This means the amount you’ve borrowed and the fees that we charge on top of this. This information is provided when you sign up for the pre-settlement funding initially, so you’ll know what is due before you agree to pre-settlement funding.
If your case does not settle, you are not liable to pay back anything on the amount you’ve borrowed. You’re already facing a major financial concern, and our team won’t worsen your situation. This information can also be found in the agreement that is provided to you through our company.
Even if your case takes too long to settle, or what you feel is too long, you still don’t owe anything until the case is complete and through entirely.
Contact Our Funding Company Today for Help
If you’re ready to receive funding for your case sooner, rather than later, the team at Money First Funding is here to help. We know you’re in a dire financial situation, and we’re ready to help. While it’s always best to talk with your lawyer about what’s right for you and your case, our team is ready to discuss your options.
If you need pre-settlement funding, speak with us to find out if you qualify. You can give us a call at 702-623-3333, or you can fill out the following online contact form to learn more about our services.