Pre settlement lawsuit funding is designed to give you cash now against the future settlement of your case. While sometimes called a “lawsuit loan,” pre-settlement funding is not a loan in the traditional sense. Yes, you are given cash, and yes, the funding company intends to get it back with interest when your case settles. However, if you lose your case, you are not liable to repay the cash advance.
Sounds like a win-win, right?
Except, sometimes, pre-settlement funding companies charge usurious amounts of interest on your cash advance, taking a substantial chunk out of your final settlement payment. After attorney’s fees, medical bills and repaying your cash advance loan, you may find yourself with very little money left over.
Protecting Yourself from Predatory Lenders
Sadly, both insurance companies and lawsuit loan providers often take advantage of your desperate state after an accident. Insurance companies try to get you to settle for the lowest possible offer, and legal proceedings can take months to settle your case. Pre-settlement lenders know you are desperate for funds, and they often exploit your circumstances to their advantage, charging exorbitant interest that often exceeds the value of the original loan.
However, not all legal funding companies are predatory, and many go out of their way to make sure you understand the terms of your cash advance agreement before you sign any paperwork.
To choose a reputable lender and avoid predators, use the following guidelines:
- Do your homework: Spend time researching various funding companies, and read user reviews. Find a company with a solid reputation and feedback from satisfied customers.
- Ask for a detailed schedule of interest charges from the lender for at least the next 12 months.
- Avoid brokers, who charge additional fees to send your case out to independent funding companies.
- Have your attorney look over your funding contract and explain anything you don’t understand.
- Don’t be afraid to shop around. It’s your money, and you are entitled to get the best possible terms for your cash advance loan.
Transparent Funding from Cronus
At Cronus, we pride ourselves on transparency and our reputation for treating customers fairly. You have already been victimized by your accident. Don’t become a victim to predatory lenders who are out to get their hands on your settlement money. Contact Cronus today, and get the cash you need now while you wait for your case to settle.