Submitted by Capital Now Funding
Personal injury accidents are never convenient, and they often leave the injured party with unexpected bills and unwanted financial stress. Add to this the fact that insurance companies often drag their feet and rarely offer the full amount of money the client deserves, clients are often left being forced to take a lesser amount of money than they need.
Pre-settlement funding, also known as Consumer Legal Funding, has the power to provide clients with the money they desperately need, long before the case settles. And because this funding is non-recourse, it can be secured with no risk to the consumer.
How exactly does this process work, and how can you maximize your benefits?
The Basics of Pre-Settlement Funding
Pre-settlement funding is provided to an injury victim who is waiting on a settlement, or for a lawsuit to resolve. Once approved, the consumer is provided money which can be used to pay deductibles, medical bills, routine home expenses, etc. For a person that doesn’t have excess savings, pre-settlement funding provides a way for them to continue living their life as usual, without being forced to skip medical treatment, unable to buy groceries or worse unable to take care of their family.
As mentioned previously, pre-settlement funding is non-recourse, which means if a settlement is not won, the funding will not have to be paid back. Additionally, pre-settlement funding must only be repaid when the case is closed which means no periodic payments are required throughout the process.
The Value to Personal Injury Victims
So, what are some of the reasons pre-settlement funding is so valuable?
- Immediate financial relief. The biggest benefit is going to be immediate financial relief. Due to an accident, personal injury victims are often dealing with medical bills, new expenses, and the loss of their primary income – all on top of needing to keep paying regular expenses. Getting money quickly through pre-settlement funding can provide instant reprieve, helping them manage their finances much easier.
- Stress management. Financial stress can be devastating. If the client isn’t sure how they’re going to get money, or if they’re dealing with debt collectors, it can make them feel anxious and under pressure all the time. If they’re already dealing with a disability or a serious injury, these effects can compound. Pre-settlement funding will help them find comfort and manage their stress much easier.
- Reassurance. Even if a client has insurance, waiting on the insurance company can be very difficult. Providing a consumer the option to get some money soon after an accident can help reassure them that everything is going to be okay. And as mentioned above, providing a client with reassurance will help eliminate stress and make their life easier.
- No risk. Pre-settlement funding carries no risk. The client won’t have to meet their contractual obligation if they don’t receive a settlement. This is also a key reason that pre-settlement funding is not a loan – there is zero obligation to repay the money if there are not enough proceeds from the settlement to pay back the funder.
Pre-Settlement Funding is a Valuable and Much Needed Resource
Every personal injury case is different, and every case has a different timeline for settlement. When uncertain how long it is going to take to resolve the case and receive a settlement, pre-settlement funding can provide tremendous benefits to a person in need.
When searching for a pre-settlement funding company, always be sure and do your homework. Look for a company that has great reviews, responds quickly, and is transparent about their fees. Lastly, always keep your attorney in the loop because they can help navigate the process.
If you are in need of cash after an accident, don’t hesitate to reach out to a reputable funding company. They will provide much needed financial relief and leave you in the best position to give your case the adequate time it needs to settle.