Settlement Loans: High Risk Alternatives
Lawsuit Settlement Loans are often provided to Plaintiffs or beneficiaries of Plaintiffs in most Personal Injury Claims that may require a longer time to settle than the average outcome. Popular in personal injury cases, such as workplace accidents or a slip and fall type injury, a Settlement Loan can carry hefty interest rates which may range from 25%-50%. They may also require periodic repayments or full repayment if the case does not settle in the Plaintiff’s favor.
Settlement Loans vs. Lawsuit Cash Advances
Cash For Lawsuits favors the issuance of Non-Recourse cash advances over this form of pre-settlement funding. The risks and high costs of a Settlement Loan may not be the best option and our clients often select a more favorable form of lawsuit funding like a Lawsuit Cash Advance.
High Interest Rate = High Risk
Because a Settlement Loan may require repayments whether you win or lose your case, and offers high interest rates, this option of pre-settlement funding may not be the best option for you to choose. Interest rates can range as high as 50% and the result can be repayments that may be more than your cash settlement. The result? You may owe more out of pocket for repayment with no settlement proceeds left to spend.