Find the Best Pre-Settlement Funding for You!
FAQ: Frequently Asked Questions about Pre-Settlement Funding
Q. Why is a pre-settlement funding advance not a loan?
A. Pre-settlement funding is not a "loan" because
its repayment is contingent on the outcome of your pending lawsuit.
Pre-settlement funding recipients are only required to repay the
advance they received if and when they win their lawsuit at trial or
they reach an out-of-court settlement.
Q. What is the pre-settlement funding application process?
A. You begin by applying online. A pre-settlement
funding underwriter reviews your application, and if you appear to
have a fundable claim, he requests supporting documentation from your
attorney's office. As soon as the underwriter has reviewed this documentation,
he makes a decision about funding your lawsuit. The pre-settlement
Funding company sends an agreement to your attorney to review on your
behalf, and as soon as the pre-settlement funding provider receives
your signed agreement, they issue a check and overnight it to you.
Q. How does the pre-settlement funding company get re-paid?
A. When you either win your lawsuit at a
trial, or you and the defendant reach an out-of-court settlement, the
proceeds of your settlement go into a trust account administered by
your attorney. Your attorney pays himself his fees and approved expenses,
and he then pays off any lien holders, and that includes the company
that provided you with pre-settlement funding. Once the lien holders
are paid, the balance is remitted to you. Should you lose your case,
you keep the pre-settlement Funding advance, and you and your
attorney owe the pre-settlement funding company nothing!
Q. What are the differences between pre-settlement funding, lawsuit funding, lawsuit advances, lawsuit loans and legal finance?
A. These are different terms for what is basically the same financial service. The term "pre-settlement funding" is the most accurate of these different terms.
Q. What involvement does the pre-settlement funding company have in my claim?
A. It has no involvement. Once the pre-settlement funding company advances you cash, it is not involved in the prosecution of your lawsuit. The company will ask to be kept informed about your case.
Q. What interest rate will the pre-settlement funding company charge me?
A. Interest is charged on loans, and pre-settlement funding is not a loan. You will be charged a "risk premium" on your advance. It is a fixed fee that is charged every six months. The actual risk premium differs from client to client since each application for a pre-settlement funding is evaluated, granted and priced on a case-by-case basis.