Lawsuit loans are unlike any traditional loan. You must have heard other terms such as ‘case loans’, ‘settlement loans’, ‘lawsuit funding’ or ‘pre-settlement funding’ as well, all of which refer to lawsuit loans.
It is necessary to understand that traditional loans and lawsuit loans are entirely different in nature.
Understanding Traditional Loans
A traditional loan is money that you are lent at some interest, and which you have to pay back after some time. A traditional loan comes in two types:
- Secured loan: lent against some sort of collateral or ‘security instrument’. The debtor may sign a note outlining some terms and conditions regarding the repayment, schedule, interest rate etc.
- Unsecured loan: while there is no collateral, the creditor can sue the defaulter in case of non-repayment or delay in repayment, or charge the defaulter with a penalty or high fees.
You can take a traditional loan from a bank or anyone willing to lend you money. There are plenty of ‘loan sharks’ as well that lend loans on high interests, but it is dangerous to deal with them given their illegal activities and wrongdoings.
Taking a loan from a bank requires you to go through a long approval process. You will have to submit tons of documentation and the bank will approve the loan based on their discretion, after checking your employment history and credit history.
Lawsuit Loans & Their Benefits
Lawsuit loans refer to the funding you receive while you are dealing with your lawsuit. Most people are still not aware of lawsuit loans, which is why they are not able to reap its benefits either.
If you are a plaintiff battling your way with an auto accident lawsuit, you must be facing issues such as:
- Managing your lawsuit expenses
- Paying your medical bills (if you have sustained serious injuries)
- Loss of wages due to sustained injuries
- Being unable to pay for your overall expenses (rent, bills etc.)
To facilitate plaintiffs going through these issues, many companies offer lawsuit loans that only need to be repaid IF the plaintiff wins the settlement. The recourse policy may vary from company to company but most companies do not pressurize their clients for repayment or for paying high interest rates either.
Benefits of opting for a lawsuit loan include:
- Having the freedom to manage all kinds of expenses that you consider necessary, without having to justify them to anyone.
- No stress about repaying your loan in case of losing your lawsuit and settlement.
- Quick and instant approval with no employment history or credit history checks.
- Near to no interest rates. You will only pay a dedicated amount out of your settlement, which is discussed with the company beforehand.
If you are also a plaintiff going through a difficult situation with your lawsuit, find out more about lawsuit loans from DeltaLawsuitLoans.com right away. You can get your loan approved within the same day in up to 24 hours as well!