Lawsuit Funding Loans and Settlement Loans- Taking a Closer Look at the Concept
Personal injury lawsuits have become a commonplace phenomenon in the recent years with more and more US citizens filing cases for availing of damages and compensation. These lawsuits cover a wide gamut of issues like personal injury, wrongful death, neglect, sexual harassment, civil rights, class action, Workers' Compensation and the like. In most of these cases, the plaintiff or their family are rendered incapable, whether temporarily or permanently, of working and earning any income. This causes severe hardship for which they seek to attain damages and compensation.
But as a paradox, if the victim of a personal injury case decides to take legal action, he/she will have to bear a considerable amount of expense to file for the case as well as to hire an attorney. Since the family will already be under financial strain, this added expenditure only goes to worsen their financial situation. Most victims are simply unable to afford legal services and consultation and end up not getting justice ever. But with a new financial product that has been hitting the market, the lives of such victims have become much easy. We are referring to lawsuit settlement loans here.
What is this new concept?
Quite simply, a lending company, customarily comprised of a group of investors, buy by interest in an outstanding claim (i.e., a pending lawsuit). When this happens, the plaintiff is often able to obtain the cash-advance on that case that will assist them in continuing the litigation. Lawsuit settlement loans therefore become the key to survival for any plaintiff in this scenario.
When you look at lawsuit settlement loans from such a simple perspective, it is quite possible that we may end up ignoring the many nuances and facets of such a financial arrangement. In light of the risk that lawsuit loans and settlement loans pose to those who advance the lawsuit funding, it is necessary for fees to be charged for allowing plaintiffs to access that cash prior to settlement. When you compare these financial assistance products with other loans available in the market, you will find that the interest rates are significantly higher. The lending companies are assuming a huge amount of risk by disbursing cash to you right now on the basis of a legal settlement that might be obtained in the near future. In most cases, the borrower is not required to pay anything back to the lender if the case is not settled in their favour. These higher rates of interest allow lending companies to mitigate the inherent risks involved in this transaction.
Another important aspect to note here is that the borrower’s credit history holds no importance whatsoever in this transaction. Lenders do not even consider it as a viable factor to disburse the loan. It is actually the viability of your legal case that is more essential. As long as you have a strong case in court, you will be eligible for this loan.
You can visit NLFunding.com to know more about lawsuit settlement loans.
About The Author
Sydney Banks is a litigation funding expert who openly advocates the many advantages that this option brings for plaintiffs in need of intermittent financial support during the course of cases. She recommends NLFunding.com as the best and most trusted provider of such products in the US.