Lawsuit loans, also known as pre-settlement funding, lawsuit cash advances, and settlement loans are a useful tool for any injured party involved in a lawsuit.
They help alleviate the financial strain while a claim makes its way through the legal system.
At Ally Lawsuit Loans, we have watched the industry grow quite a bit over the last decade.
Despite the fact that pre-settlement funding in Colorado is on the rise, many people who could benefit from a Colorado pre-settlement loan are unaware of the fact that they even exist.
While the industry grows, not many people know about it. With the hope of informing the public a bit more about Colorado settlement loans, we put this guide together.
How Can a Lawsuit Loan Help Me?
At its core, a lawsuit loan is a loan like any other. Like other types of loans, settlement funding in Colorado acts as a sort of financial bridge.
The bridge spans the time between when you file a lawsuit and when you eventually settle the claim. Guessing the length of time that a given lawsuit will take to settle is nearly impossible and largely speculative.
There are simply too many factors at play to give an accurate estimate of the time it will take.
During that time between when you file the lawsuit and when it settles, you may need some extra money. After all, the incident that you are suing over probably added some extra bills to your monthly budget.
Furthermore, you may have missed work as a result of the incident, which further deteriorates your financial situation.
With a lawsuit loan in your pocket, you can take care of those bills as they are due. That way, you can keep more of your settlement money.
What Happens If I Don’t Win My Case?
Lawsuit loans are practically risk-free compared to most other loans. That’s because lawsuit cash advances are a unique type of loan.
If you default on your lawsuit loan from Ally, you won’t owe us a penny. That’s because our lawsuit loans are non-recourse loans.
What Is a Non-Recourse Loan?
We can characterize the difference between a recourse loan and a non-recourse loan by looking at collateral. On a standard recourse loan, the collateral is unspecified but includes the whole of a borrower’s assets.
If you default on your recourse loan, your lender can seek repayment by seizing any assets you have. This is not the case with non-recourse loans. Non- recourse loan agreements contain a specific item for collateral.
With lawsuit loans, that collateral is your eventual settlement check. If you don’t win in court or don’t settle, there is no settlement check or jury award.
Thus, there is no collateral in such a situation. That’s why we call our lawsuit loans risk-free.
Ally’s Three-Point Promise for Lawsuit Loans in Colorado
Our Colorado lawsuit funding team is on standby to help you with all your settlement funding needs. Ally Lawsuit Loans offers a unique, three-point promise to all of our borrowers:
- Our best rate in the industry guarantee;
- Our guarantee that you will pay nothing if you lose; and
- Our guarantee that you can qualify in just 24 hours.
With our three-part promise behind your Colorado lawsuit loan, you can rest assured knowing that you are working with one of the best leaders in the industry.
If you’re ready to apply or want more information, give us a call at Ally Lawsuit Loans today to see how our pre-settlement loans in Colorado can help you!