The sad reality about car accidents is that they are part of life and can happen without notice anytime, and anywhere. They are responsible for thousands of deaths and millions of injuries every year. Other than the deaths and injuries, car accidents can come with devastating financial consequences – medical bills, therapy fees, legal fees, and loss of income to just mention a few. When the dust finally settles, the number of expenses arising from a car crash could reach thousands of dollars, and even though the auto insurance may shoulder some of the expenses, the injured party may find themselves still wreathing in a lot of financial pain months or even years after the accident.
It is through a settlement that a plaintiff may get some financial reprieve in covering all or some of the expenses resulting from the accident. However, it may be months or years before such settlements are finalized and this may bring a lot of financial strain to the plaintiff. Instead of rushing for a premature settlement, plaintiffs can take advantage of lawsuit loans or cash advances to help them meet some of the most pressing financial obligations during the lengthy trial before a settlement is finally reached.
Lawsuit cash advance as a different type of loan
Some people perceive lawsuit cash advance as some kind of a loan, but this is not entirely true. With a loan, you borrow a principal amount and repay within a set period and with some interest on top of the principal amount. Lawsuit loans, however, are borrowed sums based upon an outcome of a case. It means that if a plaintiff applies for the cash advance and manages to win the case, then they will use part of the settlement to pay back the loan. But if they lose the case, then they don’t pay back anything.
You may consider legal funding as some sort of insurance for the lawsuit. With it, you are given cash upfront so that you are never worried about the outcome of the case. If you win, well and good, and if you lose, you are still well taken care of financially. In simple terms, a pre-settlement funding is just like a cash advance.
If you have a watertight case, a legal funding company like grapeleafcapital.com will be confident that they will recover their money once a settlement is reached, and as such, they will give you cash up front and wait to recover it when the case is concluded. There are many benefits that come with such kinds of funding, and they include but not limited to-:
Help with the expenses
The devastating effects of car accidents on the various aspects of a family are not a secret, and one of them is usually the ballooning expenses. In addition to the pain, suffering and the financial constraints you will face, it may take months or even years before you get a settlement if you will be lucky to win the case. With the help of accident cash advances, you will be in a position to reduce some of the pressing financial needs until that time that the settlement is made. It is a good way to meet living and medical expenses such as-: legal fees, rent repayments, general living expenses, medical expenses and car payments amongst others.
No credit checks and bank accounts for lawsuit loans
If you were to apply for the ordinary loans or cash advances, the lending institutions will subject you to a myriad of rules, including stringent credit checks. The process may sometimes take a long time, during which you may not have any other source of finances to keep your life moving forward. And after all the grueling checks and the wait, you may end up not getting the loan or the amount you had applied for. But with legal funding, no credit checks or bank accounts are necessary. All that is required is for the legal lender to be convinced that you have a good case and you have higher chances of winning. Whether or not your credit score is in tatters, you will still be able to access such facilities.
No monthly repayments or upfront fees
With the typical loans, once the grace period expires, you will be required to start making regular repayments, in most cases, you will have to service the loan on a monthly basis. Additionally, there will be upfront fees you will be asked to pay, not to mention various penalties you may also be subjected to if you don’t comply with all the terms of the loans. As such, they may be quite frustrating and you may not enjoy using them with a lot of peace of mind. But with lawsuit loans, there are no monthly repayments, fees or penalties for defaulting. The agreed amount will be deducted automatically a settlement is made after you win the case. Your only worry would be to win the case.
No one cares how you use the funds
If you are going for a mortgage loan, then you will be expected to use the loan towards purchasing a home and if you are going for a car loan, the lender will expect you to use their money for purchasing a car. In other words, your use of the normal loans may come with certain restrictions contingent upon the lender. However, with pre-settlement lending, the money is for you to use as you wish. You can use it for medical expenses to help you recover quickly, but a home, a car or even use the money to go for a vacation.
The application process is quick and easy
With pre-settlement loans, you don’t have to wait for days or weeks to know if you qualify for the lending and a couple of more days before the money hits your bank account. With these loans, you can make an application and have the money in your back within 48 hours, depending on the legal lender.