It can be hard enough to make ends meet without having to wait on the payout from a legal settlement. Regardless of whether you are able to work but have to take time off for the legal proceedings, or are injured and unable to work at all, money can become tight during litigation proceedings. If you’re looking for a way to get the money you need for expenses before the settlement has been reached, you may want to consider litigation financing. Litigation financing, also known as pre-settlement loans or legal financing, can be a useful and effective way to get the money you need immediately without waiting for your settlement to be reached.
Litigation financing is the borrowing of money against what you will receive from your settlement when the proceedings are through and the money owed to you begins to be dispersed. A number of lenders offer litigation financing loans, and they generally guarantee that you won’t have to repay the money you borrow unless your case is won and you receive your settlement funds. One advantage of litigation financing is that there is no additional collateral required, unlike many other forms of lending. Lenders who offer litigation financing know that the money from the settlement will be coming, and this is the only guarantee they need to ensure they will reimbursed for the litigation financing loan.
There are a number of uses for litigation financing loans. You can use the borrowed money as a means to pay medical bills or other expenses resulting from any injuries you have received that have taken you to court in the first place. The money can also be used to keep your current bills up-to-date if you aren’t able to work because of an injury or time spent in court. If it appears that you are going to receive your money in a structured settlement over a set period of time, you may be able to get a litigation financing loan to give you money you need up-front so that you can easily use your settlement payments to repay the money you borrow for the litigation financing loan.
You may find that you have several options when looking for a lender that offers litigation financing loans, and each has their specific advantages and disadvantages. If possible, look around and compare the interest rates and terms that are offered by different lenders so you can find the best loan available to you. It would also be wise to consult your attorney or legal team to see if they have any recommendations; they will have likely had clients in the past who have taken out litigation financing loans and had good experiences with certain lenders. This will help you to get the best possible loan available to you, allowing you to save money on your litigation financing loan and ensure that the lender of your choice will get you the money you need as quickly as possible.