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Why Are Pre-Settlement Funding Companies So Helpful?

Before you commence a lawsuit against a company or an individual, one thing you should be certain about is that your financial obligations will increase. 

Statistics have proven that medical and legal expenses do not come cheap, and neither are your household needs, especially where your source of income has either been cut short or put on temporary hold. 

How then can you ease your burden? The good news is that you can source for pre-settlement funding. This type of financing has helped so many people, and you can also be among the lucky ones. 

If you work with a renowned pre-settlement funding company, you will get to experience various benefits. A good attorney can always lead you to a funding company that offers the best terms. 

Here are some of the reasons as to why pre-settlement funding companies are so helpful: 

No Upfront Charges

Pre-settlement funding companies are already aware of your financial struggles. The purpose of their business is to help financially challenged litigants pursue their claims with ease. Therefore there is no chargeable fee upon application. 

Payment Only After a Successful Settlement

Most people don’t believe that there is a financing institution out there that can give out their money and expect payment only after a win. Well, pre-settlement funding companies get paid when you get your compensation check. 

Therefore in the event you lose in your claim, you don’t have to be scared of a lending institution coming after you. In a pre-settlement funding engagement, the risk is more beneficial to you than it is to the pre-settlement funding company. Therefore if you ever need financial assistance to help you through your claim, you shouldn’t hesitate to reach out to a reputable pre-settlement funding company. 

No Fixed Time for Repayment

Your lawyer or pre-settlement funding company can never determine the duration a case will take to finalize. With a backlog of cases that the judiciary faces (more so in personal injuries), even the most straightforward case can take years to settle. Therefore, a pre-settlement funding company does not dictate the time of repayment; the time of settlement of your claim does. 

Funding Can Be Used on Personal Needs

A pre-settlement funding company does not dictate how you spend the funds advanced to you. The sole reason for the funding is to cater to your expenses, so you can use the funds for your household bills, medical bills, or even legal fees. In general, once you get the pre-settlement funding, the company does not do a follow up on usage. 

Helps Avoid Under-Compensation

A pre-settlement funding company can be termed as a lifesaver. If an accident has rendered you disabled, nursing serious injuries, or out of work for an unknown duration, you will be in a dire need for money sooner or later. 

Such financial hardships can compel you to accept any offers coming from an insurance company. Insurance companies are always out to grab any possible chance to underpay an accident victim. When they realize you are a likely candidate for under-compensation, they will always reach out as soon as possible. 

If your injury has left you in a dire need for finances, always talk to your attorney. Litigation financing has become popular; therefore, your attorney can advise you on the way forward, more so on the best-suited pre-settlement funding company. 

Credit Score Doesn’t Determine Whether You Qualify for Funding

Your income level or credit score is not a determining factor of whether pre-settlement funding can be advanced to you. A pre-settlement funding company uses the chances of success of your claim to decide on funding you. 

A good attorney is best placed to access your claim and advice on the chances of success. Most pre-settlement funding companies will not fund your case if you don’t have legal representation. Your attorney’s legal opinion on your case will be used as the reference point of the possible outcome of your case by the pre-settlement company. 

Once a settlement is reached, your attorney will deduct the amount owed to the pre-settlement funding company and surrender the rest to you. If you have been scared of applying for pre-settlement funding, you now have all the reasons to reach out and get the financial help you require.