Pre-Settlement Funding: Getting the Cash Upfront

During the course of a personal injury case, the victim still has bills they need to pay. Yet, in many cases, the victim is unable to work, so making money becomes difficult. Consequently, their family may have to live on just one salary, or even worse… no salary at all. This is why plaintiffs with more powerful cases need to consider pre-settlement funding. With pre-settlement funding, they get a portion of the settlement even before it has been officially awarded in court.

How is this possible? Well, pre-settlement funding works like a cash advance. Basically, the loan company involved with the transaction decides to take a risk because they feel that the odds are on the plaintiff’s side. Once the case is won, the victim must pay the advance back through an upfront fee or through monthly payments. If the case is lost, the victim doesn’t have to pay anything.

Does this sound too good to be true? On the surface it might be, but loan companies offering pre-settlement funding choose their clients wisely. If they think a client isn’t going to win much, they may fore go working with them.

Also, potential clients are charged very high fees until the settlement is actually reached. So, personal injury victims shouldn’t think that just because they get pre-settlement funding, budgeting isn’t important. In some cases, they may have to use a small portion of the advance to pay the fees.

All in all, pre-settlement funding is definitely not a cure-all. Yet, if a client is likely to win tens of thousands, or even more, pre-settlement funding can keep them afloat until the case is over. So, go on and talk to your attorney about it. If they think pre-settlement funding is doable, they may refer you to different companies. But don’t expect too much interaction beyond that, because lawyers have to be careful that their actions don’t show a conflict of interest.

If you have a question regarding a Personal Injury Claim, Contact The Injury Lawyer Group Today!