July 2 2019
Pre-settlement financing which is also known as a lawsuit advance, gives plaintiffs the access to money before a particular case is settled so they can pay for the regular expenses that are mounting during the legal process.
Getting money before a settlement
Filing lawsuits and litigating can be expensive and most definitely time-consuming. Even when a big verdict is there or you are almost sure of a settlement, there is a certain time that will actually take before the money arrives. But in the meantime, life doesn't stop and the expenses continue to mount.
There are options to fill this gap which go by several names such as lawsuit loans, lawsuit advances, third-party consumer litigation financing, structured settlement loans, non-recourse advances, non-recourse loans and alternative litigation financing.
Whatever they’re called, these financial options are getting popular and one should understand the basic of it before actually settling for the funds.
A lawsuit advance or pre-settlement funding occurs when plaintiffs look for advanced money from a court award before the final decision or the settlement is made.
The company advancing this money will likely require documentation, which is inclusive of possibly all the medical records information (or the injury records whichever is applicable) from your attorney about your case.
What has made it a preferred option is the fact that traditional banks and credit bureaus do not give loans based on expected settlement value. However, a settlement advance company will and you do not need to pay them anything unless you turn out to win the case.
Are litigation advances loans?
These are different from traditional loans in several ways, which is inclusive of the fact that they are not required to be repaid if the plaintiff fails to win the settlement or court award. If the case doesn't materialize, the consumer doesn't need to pay anything from his or her pocket.
Furthermore, credit checks are not required for these advances as they do not involve monthly payments and thus does not have any risks of affecting the consumer credit ratings.
Elevant Finance Group LLC is based in South Florida and is a trusted name when it comes to offering secured funding to plaintiff law firms, service providers and pre-settlement advances to claimants. You can know more about them over elevant.finance or by dialing (855) 240-0246.