Don't "Settle" for a settlement loan before you read these tips
In the recent times, there has been an increase in litigation. It is therefore not unusual to see ads offering lawsuit settlement loans. To most people not involved in lawsuits, such loans would seem obscure. But I'm sure you often wonder, what is a lawsuit settlement loan?
It is a cash borrowed from a lender by a litigant to fund his legal case with a no-risk lending option. While claiming against a person in court, you still have to bear financial burdens associated with the claim and also other matters.
If you are a candidate for a loan, here are 5 questions you need to ask before applying for one:
Whenever one borrows money, it's never an impulse decision. You often have to put thought and weigh out the pros and cons. You have to consider the settlement option offered by the defendant and the settlement amount you would receive if the verdict were made in your favor.
Judgments take long to be reached, and defendants benefit from this by offering bogus low settlements in a bid to get the case dismissed. A lawsuit settlement loan would enable you to get the verdict settlement that you deserve.
Different lenders have different interest rates, take different time to review loan applications and underwrite to various claims. Finding the right one seems such as a big hustle, due to the many offers on the table.
For this to be easier, you may consider using an experienced lawsuit financing broker to get the best deal that suits your needs and case.
Lenders have interest rates ranging from 1% to 5% on lawsuit loans. You have to ask each lender the interest charged for the loan to know whether it's fair.
The repayment plan given by the lender is also crucial in determining the interest on the loan. Use the program to calculate the entire amount of interest you'll eventually pay, and assess whether it's fair before agreeing to the loan.
It rarely happens, but if it does, it's because lenders advance 10% of the expected value of the settlement of the claim as the loan.
Since these loans are non-recourse, any outstanding amount of the loan after settlement in such a situation will be dismissed.
They are given at a no risk lending option. This means that they are non-recourse and cannot be paid if your claim doesn't prevail. In case you lose - you pay nothing!
Here are more tips to consider.
Always evaluate your situation and the lenders before taking it.