Debunking myths and explaining how pre-settlement funding really works.
When plaintiffs face lengthy legal battles, financial challenges can compound the stress of waiting for a settlement. Pre-settlement funding provides a solution to help plaintiffs cover essential expenses while their case is being resolved. However, there are many misconceptions surrounding this type of financial assistance. In this blog, we’ll address some of the most common myths about pre-settlement funding and explain how it truly works.
Misconception 1: Pre-Settlement Funding Is a Loan
One of the most prevalent misconceptions is that pre-settlement funding is a loan. This is false. Unlike traditional loans that require repayment regardless of the outcome, pre-settlement funding is non-recourse. This means that if a plaintiff loses their case, they are not required to repay the funds they received. The funding is provided based on the strength of the lawsuit, and repayment is only required if the plaintiff wins or reaches a settlement.
Misconception 2: You Must Have Good Credit to Qualify
Another myth is that pre-settlement funding requires a credit check or good financial standing. In reality, pre-settlement funding is determined based on the merits of the case, not the plaintiff’s financial history or credit score. Arthur Funding, for instance, evaluates the strength of your legal claim, working closely with your attorney to assess the likelihood of a successful outcome. This allows plaintiffs, regardless of their credit background, to receive financial assistance during their case.
Misconception 3: Pre-Settlement Funding Will Pressure Plaintiffs to Settle Early
Some people mistakenly believe that receiving pre-settlement funding will pressure plaintiffs to accept an early, lower settlement offer. This is not the case. Pre-settlement funding is designed to relieve financial pressure so that plaintiffs can wait for a fair settlement without the worry of immediate financial needs. The goal is to empower plaintiffs, not rush them into a decision that undermines the value of their case.
Misconception 4: Pre-Settlement Funding Is Too Expensive
It’s also common to hear concerns that pre-settlement funding is excessively costly. While it is true that there are fees associated with this service, it’s important to understand that it is not structured like a traditional financial product. The costs are transparent and tied directly to the case’s outcome. Arthur Funding, for example, offers tailored funding solutions with clear terms, so you understand the costs upfront, and these fees only apply if you win your case.
Misconception 5: Only Personal Injury Cases Qualify for Pre-Settlement Funding
While personal injury claims are common recipients of pre-settlement funding, many other types of legal cases are eligible as well. From medical malpractice and product liability to employment discrimination and wrongful death, a wide range of plaintiffs can benefit from this financial support. If you’re involved in a lawsuit, it’s worth exploring whether your case qualifies for pre-settlement funding with a provider like Arthur Funding.
Misconception 6: The Application Process Is Long and Complicated
Many believe that applying for pre-settlement funding involves a lengthy and complicated process. In reality, the application process is often quick and simple. At Arthur Funding, for example, plaintiffs can apply easily, and approval is typically given within a matter of days. The process focuses on gathering key information about the lawsuit, which allows for a fast decision, so plaintiffs can access the funds they need without unnecessary delays.
Misconception 7: Pre-Settlement Funding Is Only for Desperate Plaintiffs
Some critics claim that pre-settlement funding is a last resort for plaintiffs in dire financial situations. However, many plaintiffs use pre-settlement funding as a strategic tool to maintain financial stability during a long legal battle. Instead of struggling to cover living expenses, medical bills, or legal fees, plaintiffs can use these funds to stay financially secure and strengthen their case without feeling rushed.
Conclusion: Pre-Settlement Funding Helps You Focus on Your Case
Pre-settlement funding is a valuable resource that helps plaintiffs cover their financial needs during litigation without taking on the risk of a traditional loan. It allows you to pursue justice without the pressure of immediate financial stress, giving you the time and peace of mind needed to focus on your case. By addressing these common misconceptions, it’s clear that pre-settlement funding is a practical, risk-free option for plaintiffs seeking financial stability while awaiting their settlement.
If you’re in the middle of a legal battle and need financial support, Arthur Funding is here to help. With fast approvals and no credit checks, we provide pre-settlement funding based on the merits of your case, ensuring that you can move forward with confidence. Contact us today to learn more about how we can support you during your lawsuit.
