Pre And Post Settlement Funding – Understanding The Difference
Lawsuit funding companies offer a variety of products to help people manage their legal fees and other expenses that come up while fighting cases. These loans are saviours of sorts for people who are engaged in legal battles but are struggling to manage their finances on account of the huge money drain these cases can be. And it will do you well to understand what these products can be like.
When you venture out to avail of lawsuit funding loans, there are two basic types of products that you will most likely have to choose between – pre settlement and post settlement loans. Lets understand what these two are.
Pre settlement funding
Pre Settlement loans are basically cash advances that are disbursed for pending litigation. The terms of these loans are simple – the borrower can only repay the loan from the amount of money he/she receives as settlement funds. It is simply an assignment of a portion of the client or attorney's interest in the anticipated recovery of the lawsuit. Interestingly, the terms of the loan may also stipulate that if there is no recovery of money on settlement, there is no repayment of the loan amount. There are many benefits associated with this form of lawsuit funding loans – they ease the financial woes of the plaintiff, they provide immediate funding assistance during times when the plaintiff’s hands are financially tied and the loan allows them to hold out for a better settlement.
Post settlement loans
These types of loans are usually cash advances made against cases that are already settled. Now the question arises as why a person will need financial assistance if the case he/she was fighting has already been settled? In most cases, there is a long wait between winning the case and actually getting the amount of money into your hands. It maybe because the payment was delayed due to court order approval, estate distribution protocol, medicare resolution, lien & judgment resolution, or it was just the insurance company dragging its feet. But the expenses you have made to win the case were very real and in the present. To pull you out of such a limbo, post settlement lawsuit funding can come in handy. These loans are quite simple too, for both the lender and the buyer because the source of money to pay off the loan is pretty much guaranteed. The benefits are obvious – immediate financial assistance to facilitate the borrower to manage his daily living expenses until the settlement money arrives.
Availing of any of the lawsuit funding loans is simple – just fill in the two page application and you are done. The funding company will manage most of the legwork for you, do all the background research and comeback with a loan disbursal in as little as three days time. You can find out all about such companies on the internet. Just run a simple search and you will have hundreds of options to choose from.
For more information about litigation funding solutions, visit NLFunding.com.
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.
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