If you’ve been injured or lost money as a result of someone else’s negligence, you may find yourself in desperate need of funds. This is to assist in covering a wide range of unanticipated damages, such as medical bills and lost income.
You may also struggle to meet your daily financial responsibilities, such as rent, utilities, and groceries until your lawsuit is resolved.
Waiting for a judgment from litigation is a time-consuming process. It can take months or even years to complete and receive your compensation. As such, you need funds to keep you going. Pre-settlement funding or personal injury loan is a sort of settlement loan.
It’s a cash advance you obtain while waiting for the outcome of a personal injury case. These legal loans could be slip and fall lawsuit loans or car accident loans.
Factors Pre-Settlement Funding Companies Analyze
Applying to pre-Settlement funding companies is a must if you need funds during the trial. With Provident lawsuit loans or loans from trusted firms, you’ll be given quick lawsuit settlement cash advances. This will help you navigate the tough period between your personal injury and the settlement of your trial.
Once you apply for pre-settlement funding, the firm will talk about the specifics of your case with your lawyer and demand paperwork. The evaluation process informs them of the strength of your case and the likelihood of a settlement. They can also predict how much money you will receive from a trial or a pre-trial settlement.
- Fault
The fault is the initial thing the funding firm seeks at. This includes all of the incident’s facts along with the police statement (if applicable). Or any other records that prove the defendant in your case is at fault.
- The Type of Case
The cases with the likelihood of being accepted for lawsuit loans are personal injury cases. Cases where you have a high chance of receiving a cash settlement or judgment also qualify. Cases that qualify for pre-settlement funding are;
- Wrongful death
- Medical malpractice
- Auto accident
- Nursing home abuse
- Personal injury
- Premises liability
- Product liability
- Slip and fall
- Employment discrimination
- Injury
Injuries are the next thing a lawsuit loan company will consider in your accident case.
This includes reports from ambulances and emergency rooms. Other medical files are also included so that underwriters fully comprehend the magnitude of your injuries.
Many lawsuit lending companies will also provide surgery funding if necessary. This is to assist you in paying for medical treatments as a result of the accident.
- Insurance
The defendant’s insurance coverage will also be considered by the lawsuit settlement loan company.
This section is straightforward. Underwriting will ensure that the defendant in the case was adequately insured to pay the incident’s damages and injuries.
Approval Process
The approval process begins after the above-mentioned factors have been evaluated.
- Your Application
Your application will be received and reviewed by a team of awaiting settlement loan advisors. You will be pre-funded in-house or by one of the alliance partners at a relationship-based rate. This depends on several factors.
With the initial phone call, you will supply publicly available information about your claim. This will determine the acceptance of your application. If you express interest, underwriting may require additional information and a scheduled call with their lawyer.
The settlement loan company will first contact your lawyer to learn more about your case. This enables them to assess whether or not it is a reasonable risk.
Keep in mind that they only get paid if your lawyer is successful in collecting money for you. Lawyers work on a contingency basis. As a result, there’s a high likelihood that if your lawyer believes your case is worth the investment, the funder will as well.
- Your Lawyer
The lawsuit funding company will need to know what caused the accident and how serious your injuries are. The firm’s team will collaborate with your lawyer to ensure that their underwriters comprehend your situation. They also ensure that you receive the most available funding.
Some lawsuit funding companies demand that you be represented by a bar-licensed lawyer. It is also necessary for your attorney to participate in the due diligence process. Keep in mind that your lawyer has to answer the funder’s questions quickly. This will hasten the approval of your awaiting lawsuit loan application.
- The Underwriter
The case review consists of a phone call with your attorney to answer any questions you may have about your case. Following that discussion, the underwriter will either approve or deny your case, depending on its value. If you are approved, they will send you and your lawyer documents to sign.
- Your Approval Amount
The amount of legal funding will be determined according to how much cash the underwriters think your case will possibly settle for. Underwriting will not lend you $80,000 for a case in which mild injuries.
A loan in the six-figure range is most likely for a claim involving devastating injuries and long-term disability. Most lawsuit loan companies’ loan offers are usually sufficient to be useful.
- Your Funds
Once you and your lawyer have signed the funding contract, return it to the company. You should get your loan instantly, sometimes on the same day. The company will distribute the funds as soon as possible in the manner you specify.
At this point, there is nothing else you can do until your case is resolved. If your case turns out to be more serious than you anticipated, you may be eligible for additional funds.
Final Thoughts
After a personal injury, you may face an unforeseen emergency expense or be obligated to pay a medical bill. It is beneficial to understand what a pre-settlement funding company looks for when evaluating your lawsuit loan application. The lawsuit loan process entails analyzing your case in order to underwrite a legal advance.
Once you apply for pre-settlement funding, the business will request some basic detail. They’ll want to identify who you are, what occurred, and how much money you’re hoping to receive in your settlement. Settlement loan companies will then gather and analyze the remaining information from your law firm.