This guide is designed to explain the reasons why someone in a pending lawsuit would want to apply for a settlement loan. A settlement loan is basically a cash advance on a possible settlement amount that you may receive from a pending lawsuit. A settlement loan provider reviews the probability and merit of winning your current lawsuit and determines if you’re eligible. Below are some of the reasons why a settlement loan might be right for your situation.
#1. No credit checks
A settlement lender is a company or investor who is buying an interest in your pending lawsuit. Based on their evaluation of the pending lawsuit, they will offer you a cash advance against the settlement amount you may receive. Since this loan is based exclusively on the quality of the lawsuit and the probability of its success, there is no credit check required to receive such a loan.
#2. Only repay the loan if you win
This is the main reason a settlement loan is not consider a traditional loan. If you lose your lawsuit you’re not responsible or obligated to pay back the amount of the settlement loan. You only pay back the amount if you win your lawsuit. This fact alone makes a settlement loan far better than a traditional loan.
#3. Prevent Early Settlement
The funds from a settlement loan can support you and your family during the time it takes to settle your lawsuit. Often the financial pressure caused by the original injury forces one to settle a lawsuit in less than favorable circumstances. A settlement loan can preclude this from occurring.
#4. Take only what you need.
A settlement loan is generally not for the full amount that you will receive from the lawsuit. The lender will tell you how much they are willing to lend and you can specify how much of that amount you would like to have. You can often get even a second loan if the circumstances require as long as the total does not exceed the maximum amount the lender is willing to lend.
#5. Settlement Loans Do Not Affect Your Case.
A settlement loan will not affect your case in any way. This transaction is not disclosed to the opposing party or the court.
If you have a pending lawsuit and think that you would like to investigate settlement loans then visit the LegalSettlementLoans.com website today!