How Much Does Pre Settlement Funding Cost?

Staff Writer | September 26th, 2019

If you’re involved in a legal case, it’s likely you know that they aren’t resolved quickly. In fact, legal cases can take years to wind through the U.S. court system.

In the meantime, you may be waiting for money to pay basic necessities, like groceries, utility bills, and even for a roof over your head.

If you’ve heard of pre-settlement funding, often called legal loans, you might be wondering how much they cost. If you’re using credit cards to tide you over, you may be thinking the costs are similar, with interest rates adding to what you owe.

Pre-Settlement Funding Costs Are Reasonable

With pre-settlement funding, if you win your case, you pay the amount back at a reasonable interest rate.

But if your case isn’t successful, you owe nothing. If you lose, you don’t pay one cent back.

Here’s how it works.

Legal loans are a type of loan referred to as non-recourse. They are akin to a cash advance rather than a personal loan.

They are designed to help people waiting for a lawsuit to be resolved either via settlement or going to court. When you receive a settlement, you can use that money for groceries, utilities, and rent or mortgage payments. But what if you currently don’t have the money to cover these expenses? That’s where pre-settlement funding comes in: it’s a bridge to a settlement to tide you over financially.

Should your case be unsuccessful, you won’t owe any of the money back. Ever.

A Negotiation Tool

That alone would make legal loans worthwhile. But they play another role in your lawsuit, too. They can be a negotiation tool to make sure you get the best settlement possible.

You see, many personal injury lawsuits are resolved when the defendant offers to make a deal. Sometimes, this happens at the last minute. Other times, it may happen earlier.

But whenever it happens, the first offer you get is almost certainly too low for what your case is worth. The opposite side is using a tactic called “low balling” – seeing if the case can be resolved for a relatively low amount.

Many times, plaintiffs have financial challenges. You or a loved one may have medical and hospital bills piling up. If an accident or illness has made you unable to work, you also may not have the income you had previously.

Under these circumstances, the low-ball offer may seem too good to pass up.

Pre-settlement funding can give you breathing room financially. And once you have it, you’re in a much better negotiating position to turn down the first, low offer. It’s empowering. And it raises the chances that the defendants will come back with a better offer the second or even the third time.

Let Lawstreet Capital Help

The pre-settlement funding application with LawStreet Capital is simple and convenient. You can do it all online. There is no credit check necessary. You can receive approval in 24 hours.

LawStreet Capital can help you with your legal case today by offering a pre-settlement loan. Call our friendly representatives today to get your cash advance in as little as 24 hours!