Lawsuits take time, even months or years.
Life continues while you’re waiting for your case to make its way through the system . . . as do your financial obligations.
Bills may pile up, especially if an injury prevents you from working.
These are the reasons why a pre-settlement loan for an auto accident victim may be the answer to your financial troubles and keep you from drowning in debt.
What is a Pre-settlement Loan?
A pre-settlement loan is not a traditional loan offered by a bank, nor is it a cash advance. It is actually a form of lawsuit funding.
A settlement advance company can buy a portion of your future lawsuit settlement. This purchase gives you quick access to cash for covering living expenses and court costs while you wait for your lawsuit to settle.
After your claim is finally settled and you get paid, the portion that was prepaid to you by your settlement advance company is repaid with fees and interest.
Why You May Need Financial Assistance After a Car Accident
There are plenty of expenses stacking up while you wait for a lawsuit settlement. Getting financial assistance after a car accident can help immensely.
- An injury or long-term disability that prevents you from going back to work can cause lost wages, increased bills, and expensive medical costs. An auto accident settlement advance can help cover these items when you don’t have the time or financial resources to do so on your own.
- If you are over-anxious for settlement money, the stress may tempt you to settle faster for an amount that is far below what you deserve. However, a pre-settlement loan will buy you more time and patience so your lawyer can negotiate a larger settlement.
- A pre-settlement advance can help pay for court costs, should your case require it.
FAQs Regarding an Auto Accident Settlement Advance
You probably have some important questions regarding an auto accident settlement advance. Here are the answers.
How Much Money Can I Receive?
Depending on your immediate financial needs and the amount you are expected to receive in your settlement, you may be eligible to receive a cash advance of up to $100,000.
In addition, should you need more than one loan, you may get one from a second settlement advance company as long as your lawyer approves and both companies know about each other.
How Long Does It Take to Receive the Money?
Pre-settlement funding can take as little as 24 hours, depending on the nature of your lawsuit and how soon your attorney is available.
How Much Are the Fees and Interest?
There are many factors that play into how much a pre-settlement loan will cost in fees and interest. However, here are a few things to consider:
- Generally, the longer you have the loan, the more interest you will accumulate. Therefore, you will pay a lot less if your case wraps up in three months versus three years.
- If your agreement compounds interest monthly, you will be paying more than if your interest compounds annually.
- If your interest rate is very high, you could end up paying back more in interest than the amount you originally borrowed.
- Be sure you are aware of the fees you will be paying. They may include application fees, processing fees, underwriting fees, origination fees, review fees, etc.
- Take the time to calculate the total amount you will be paying for your loan and weigh the costs against how much you need the money now and how much you expect to win in the future.
- Be sure you fully understand the fine print before you sign any funding agreement.
How Does the Loan Get Paid After My Settlement?
Once your settlement is paid, the balance of your pre-settlement loan must be paid directly to the settlement funding company.
If the settlement amount you are awarded is significantly less than expected, your funding agency may offer negotiation assistance.
What If I Don’t Win a Settlement?
Most pre-settlement advance contracts are classified as a “non-recourse arrangement.” This means you only have to repay the funds if your lawsuit settlement is successful.
How to Get Financial Help for Car Accident Victims
Before you pursue pre-settlement funding, ask yourself the following four questions to figure out if this is the best choice in your scenario:
- Does my attorney think it’s a good idea?
- Have I read the online reviews for my funding agency?
- Is the advance worth the fees?
- Do I have any other funding options available to me?
Once you’ve determined that a pre-settlement advance is what you need, the process to apply and receive is simple.
There is no credit check, background check, or employment check. Your pre-settlement funding company will simply review your case with the help of your attorney. They will then submit a written agreement to purchase a certain amount of your settlement in exchange for an up-front payment to you.
After you sign the agreement with your lawyer present, the funds will be delivered to your attorney’s office and it will be forwarded on to you.
US Direct Advance makes it fast, easy, and free to apply for financial help for car accident victims!