How Plaintiffs can Benefit
At Arthur Funding, we understand that navigating the legal landscape can be overwhelming, especially when dealing with the financial stress of loss of wages. One of the most effective solutions for plaintiffs awaiting settlement is pre-settlement funding. However, there are many misconceptions surrounding this type of financial assistance. In this blog, we will clarify how pre-settlement funding works and how it differs from traditional loan models, emphasizing the benefits of a non-recourse payback system.
What is Pre-Settlement Funding?
Pre-settlement funding provides plaintiffs with immediate financial relief while their legal cases are pending. This type of funding is designed to help individuals cover living expenses, medical bills, and other financial obligations during the often lengthy litigation process. Unlike traditional loans, pre-settlement funding is not based on the borrower’s credit history or financial standing but rather on the merits of their legal case.
How Does Pre-Settlement Funding Work?
The process of obtaining pre-settlement funding is straightforward:
- Application: Plaintiffs can apply for funding by providing basic information about their case. At Arthur Funding, we work closely with the applicant’s attorney to gather necessary case details.
- Evaluation: Our team of experts reviews the case to determine its potential value. This assessment is crucial in deciding the amount of funding the plaintiff qualifies for.
- Approval: Once approved, the plaintiff receives a funding offer, outlining the amount they can receive and the terms of the agreement.
- Funding: Upon acceptance of the offer, funds are typically dispersed within 24-48 hours, providing quick financial relief.
- Repayment: Repayment is contingent on the case’s outcome. If the plaintiff wins or settles, the advance is repaid from the settlement amount, along with any agreed-upon fees. If the plaintiff loses the case, they owe nothing.
Non-Recourse Payback Model
A key feature that sets pre-settlement funding apart from traditional loans is the non-recourse payback model. This means that if the plaintiff does not win their case, they are not required to repay the funds. This model significantly reduces the financial risk for plaintiffs, offering them peace of mind and allowing them to focus on their recovery and legal battle without the burden of debt.
Common Misconceptions About Pre-Settlement Funding
- Pre-Settlement Funding is a Loan: Unlike conventional loans, pre-settlement funding is not based on the borrower’s financial history or credit score. It is a cash advance based on the anticipated settlement or judgment from a lawsuit.
- High Interest Rates and Hidden Fees: At Arthur Funding, we prioritize transparency and fairness. Our funding agreements come with capped fees, ensuring that plaintiffs are not surprised by escalating costs or hidden charges.
- Only for Personal Injury Cases: While personal injury cases are common, pre-settlement funding is available for a wide range of legal matters, including medical malpractice, product liability, employment discrimination, and more.
- Prolongs the Legal Process: Some believe that accepting pre-settlement funding might delay the resolution of their case. In reality, it often helps plaintiffs avoid the pressure of settling for a lower amount due to financial strain.
- Difficult Application Process: Our application process at Arthur Funding is designed to be quick and straightforward, allowing plaintiffs to receive the financial assistance they need without unnecessary delays.
Pre-settlement funding is a valuable tool for plaintiffs facing financial hardships while awaiting the resolution of their legal cases. By understanding how this funding works and dispelling common misconceptions, plaintiffs can make informed decisions about their financial future. At Arthur Funding, we are committed to providing transparent, fair, and non-recourse financial assistance to help plaintiffs navigate their legal journeys with confidence and peace of mind.
For more information on how Arthur Funding can support you, visit our website at arthurfunding.com.
