Lawsuit Loans vs Legal Funding
When you’re involved in a legal case, you may need financial support to cover your living expenses and medical bill while you wait for your settlement. Two options you might come across when searching on the internet are lawsuit loans and legal funding. At first glance, many people confuse the two terms because they may sound very similar, but they work very differently and can have a BIG impact on how your financial future looks.
But no worries—you’re not alone. By the end of this article, you will have a clear understanding of lawsuit loan vs legal funding. Let us break it down for you:
Lawsuit Loan (aka personal loan): Money you borrow from the bank, corporation or individual for your lawsuit. Repayment required.
Legal Funding (aka pre-settlement funding): Money funded by a legal funding company to help you carry through your lawsuit. If you don’t win, you don’t pay.
The Key Differences
Lawsuit Loan
- Your credit score determines your eligibility and interest rate. Lower scores mean higher interest rates.
- There is a monthly repayment. If you fail to repay the loan, your credit score will be negatively impacted.
- Repayment is mandatory, whether you win or lose your case.
Legal Funding
- The funding company evaluates the merits of your case to determine your eligibility. No credit check is needed.
- If approved, you receive funds to cover expenses while your case is ongoing.
- Repayment (with higher rates) is required only when you win the case. If you lose, no repayment is needed.
"With legal funding, victims don’t have to agree to low settlement offers."
Why Choose Legal Funding?
Legal Funding is a safer and more attractive option for plaintiffs who need immediate money to cover living expenses or medical bills while they wait for their lawsuit to settle. It offers several advantages over lawsuit loans:
Easy Application
Filling out an online form only takes a few minutes. The process is simple.
Faster Process
Once approved, funds can be transferred in as little as 24 hours.
Lower Risk
You only pay if you win your case, eliminating the risk of debt if you lose.
Choosing between legal funding and a lawsuit loan depends on your financial situation, the strength of your legal case, and your ability to take on the risk of repaying a loan even if you lose your case. It’s essential to carefully weigh the pros and cons of each option before making a decision. If you’re still unsure, read more to see the differences.
When considering legal funding, transparency from the funding company is crucial. You should thoroughly understand all the terms, fees, and conditions involved. A reputable legal funding provider will offer clear and easy-to-understand contracts, with no hidden fees or complicated language. This transparency allows you to make an informed decision and know exactly what you’re paying for.
Cartiga recommends you to carefully research and compare offers from different legal funding companies to find the option that best suits your needs and minimizes potential drawbacks. We believe that when you are clear about both the costs and benefits of legal funding, you’ll feel more confident and satisfied with the process.
Understanding the difference between lawsuit loan and legal funding is key to making the right financial choice for your situation. To learn more…
Or call 888-822-7844 to speak to our legal funding specialist!
This article is for marketing purposes only, does not constitute legal advice, and should not be relied upon as legal advice.
