You may have seen advertisements for litigation funding lenders at one point or another, offering you cash now when you are expecting a settlement from a lawsuit. These lenders can be very useful in helping you get the money you need when you need it, instead of waiting for a final settlement to be reached and the funds owed to you to be dispersed. If you are facing a situation where your bills are beginning to pile up and you’re still waiting for your court settlement to be determined, a litigation funding loan might be right for you.
The way in which these loans work is actually quite simple. Instead of requiring you to offer a house, car, or other physical object as collateral in guaranteeing the money you borrow will be repaid, litigation funding lenders use your pending lawsuit settlement as the loan’s collateral. Since they are confident you’ll be receiving the settlement from the court, you essentially have guaranteed income. This means you’ll be able to repay the money you borrow without difficulty. The loan they issue will give you the money you need immediately, and the settlement you eventually receive will allow you to repay the loan plus interest without directly spending any money out-of-pocket.
There are a number of reasons why you may need a litigation funding loan, especially if your lawsuit is being filed as a result of injuries. You could be seeking to stay ahead on your mortgage and other expenses while having to take time off work to go to court. You may also be injured and unable to work at all, but still have a number of medical bills that require payment. There will likely be other expenses needing to be settled, with limited fund available for use. Your litigation funding loan will get you the money you need in order to pay your bills and other expenses, saving you both time and frustration (not to mention the potential damage to your credit score that could result from being unable to pay certain bills).
With a number of different lenders offering litigation funding, you shouldn’t have difficulty in locating one who is willing to advance you the money you need. In addition to doing everything they can to help make sure you have your money when you need it, most litigation funding lenders also offer a guarantee that you will not be required to pay back the borrowed money if you don’t win your case. This means that even if things don’t go smoothly for you in the courtroom, you won’t be charged with the additional expense of repaying your litigation funding loan.