Pre-settlement funding is not a loan, but a cash advance to the plaintiff against the award she/he may get on successful completion of litigation. In this article, we will give a gist of the process of a settlement funding and how it works lawsuit loan. Because a lawsuit funding is not a loan, it is faster to get it as compared to traditional loans like car and mortgage. The cash advance is categorized as a non-recourse type meaning the money that was advanced need to be returned only if the case is won. This is the reason why no credit check is required for a lawsuit funding, unlike a traditional loan. For the application process, one can use www.lawdepot.com for all the documents.
The amount of cash that will be advanced by the plaintiff is calculated by estimating the money requirement and the value of the litigation. After the application has been submitted and documents were taken from the law firm the legal funding company reviews them. After which a small telephonic interview is setup with the plaintiff. If approved, the cash is forwarded to the applicant within a day or two.
There are a number of ways to get the money to the plaintiff. Each funding company can use varied methods. It is upon the plaintiff to call the funding firm and set up the way they want their money. The speed and cost involved with each can differ so check twice with the legal funding company if the option you choose is the best or not. The three most common ways to get the money are Wire Transfer, overnight check, and a regular email check. A regular mail check is the slowest way to the get the money because it uses the old snail mail method. It is also the cheapest method to receive the money. This is the best option if there is no financial emergency at hand. An overnight check is one that is delivered the next day. It is a better option than snail mail if there is a financial emergency. It can also be used if the plaintiff doesn’t have a bank account. An overnight check can be cashed at a check cashing store. It can be delivered to any address residential or business. A point to note here is that an overnight check is a bit costlier than a wire transfer.
The most common way to get your pre-settlement cash is the wire transfer these days. It is the quickest way to get the money. In this method, the money is transferred electronically from the account of the funding company to the account the plaintiff chooses. It takes only some hours for the money to be credited to your account, and it is a very safe technique. A lawsuit funding should be the last recourse as it is expensive. But if one does decide on it then alert your attorneys so that they keep the necessary documents ready for the use of legal funding firm.