Vets just like any other professionals may at some point be plaintiffs and need a cash advance against lawsuit settlements. They may have a cash need which they plan to pay with the money that they will be compensated from the lawsuit. Truth is a lawsuit loan is an easy way out but there are many misconceptions about it. The truth about cash advance loans for lawsuit settlements is the fact that it may be relatively expensive as compared to other kinds of loans but is very convenient. Maybe it may be a good idea for vets to weigh the pros and cons of lawsuit loans in order to make a decision whether to go ahead with it. Some of the facts that you need to know about lawsuit loans include:
They are convenient
They will help you to easily access funds for your needs. Be it living expenses, emergencies or any kind of financial needs, a non-recourse loan will get you covered. Most companies have short processing times that will help you access your funds in the shortest time possible.
You don’t have to pay back if you lose your case
Most lawsuit loans are n on-recourse meaning that you are not obliged to pay back in case you lose out on your case. Basically, you don’t have to pay anything, no principal amount or interest rates or collateral. For other types of loans, you have to pay back regardless of what. Otherwise, you risk affecting your credit score. For other types of loans, you will hardly be given the loan especially if your case is not very straight forward.
Your credit score does not matter
For other kinds of loans, they have to assess your credit score in order to determine if you qualify for a loan or not. For a lawsuit loan, your credit score does not matter. They will only assess your case and that will help determine if you qualify for a loan. That means that if you don’t have the perfect credit score you can still qualify for a loan.
Lawsuit loans are expensive
As mentioned earlier, they are expensive and have large interest rates. That stems from the fact that in case you lose out on the case you don’t have to pay back. As much as they are expensive, they are totally worth it especially if you have a dire need.
Not all pre-settlement funding companies are shady
There is a big notion going around that most companies that deal with pre-settlement funding are shady. While there is some truth to that, there are still some very good reputable companies. All you need are the right pointers while you are doing your due diligence. Having the right questions in mind will help you to zero in your options and make a better decision. One pointer in ruling out shady companies is the fees they charge. A good and reputable company will not have any hidden fees, an application fee or origination fee.