Following a major accident, injured victims are often left dealing with stacks of medical bills and missed paychecks.
These costs can be enormous — according to data provided by HealthCare.org, the average cost of a three-day hospital stay is approximately $30,000.
Through a lawsuit, plaintiffs can recover financial compensation for their damages. Unfortunately, even if you have a very strong case, the legal claims process can be frustratingly slow.
This is where a lawsuit funding company can make a difference. At Ally Lawsuit Loans, we pride ourselves on offering clients the best pre-settlement funding services.
Our team wants to make sure that plaintiffs have all of the information that they need to best protect their financial interests.
Here, we provide an overview of lawsuit lending companies.
Lawsuit Funding Companies: Explained
With lawsuit funding, plaintiffs “borrow” against a future legal settlement or legal judgment. While this type of funding is frequently referred to by the shorthand “lawsuit loan”, that term is actually a bit of a misnomer.
Technically, lawsuit funding companies do not offer loans at all.
Quite the contrary, lawsuit funding companies buy a portion of your future settlement in exchange for an immediate cash advance.
It is important to distinguish this type of financing arrangement from a loan.
A lawsuit funding company can only be paid through a portion of your settlement. If you lose your case, then you get to keep the proceeds of the ‘loan’, and you do not owe anything at all.
If you win your case, then the legal funding company will be repaid out of part of your settlement.
Settlement loan companies offer plaintiffs a chance to get immediate financial stability and security. In many cases, plaintiffs have a strong legal case, but insurance companies, knowing that they need the money to pay their bills now, will try to drag out the process to get them to agree to a quick, lowball settlement offer.
With legal funding, you can give your attorney time to pursue the maximum financial compensation, while also having access to the money that you need to cover your expenses today.
Three Qualities to Look For in a Lawsuit Funding Company
As a starting point, it is crucial that you find a lawsuit funding company that offers fair rates. At Ally Lawsuit Loans, we provide plaintiffs with access to the lowest-rate-legal funding — guaranteed.
We want to make sure that as much money as possible stays in your pocket. We strongly encourage our clients to take only what they need to pay their bills until their case is settled. Affordable legal funding is our mission.
Unfortunately, there are some unscrupulous lawsuit loan companies operating in the industry. It is not unheard for firms to provide funding that comes with hidden fees or disguised terms.
When looking for the right lawsuit lending company, make sure you find one that is fully transparent. Your terms should be clear, concise, and well-explained.
Finally, plaintiffs should always look for a reliable lawsuit lending company.
The entire point of a lawsuit loan is to get funding now. Look for a company that can help you navigate the application process and handle your documents in an efficient manner — this way, you will be able to get the full funding that you need to pay your bills, without any undue delay.
What Types of Cases are Most Common for Legal Funding Companies
Lawsuit lending companies can handle a wide range of different cases.
Generally, our team provides funding to plaintiffs who have suffered financial damages and are awaiting a settlement or jury verdict.
Specifically, some of the cases that lawsuit loan companies frequently handle include the following:
- Car accident claims;
- Truck accident lawsuits;
- Motorcycle accidents;
- Bicycle accidents;
- Pedestrian collisions;
- Product liability claims;
- Medical malpractice claims;
- Slip and fall accidents;
- Premises liability claims;
- General personal injury lawsuits; and
- Employment & labor law claims.
We also provide lawsuit funding for workers’ compensation claims in nearly two dozen states across the country.
However, due to state-specific regulations, legal funding cannot be offered for workers’ comp claim in some U.S. states.
If you were injured at work and are interested in obtaining lawsuit funding, please check our list of states in which pre-settlement workers’ compensation loans are offered.
Get Help From a Lawsuit Funding Company Today
At Ally Lawsuit Loans, we are a professional lawsuit funding company that is committed to offering plaintiffs the lowest rates in the industry. Do you need a pre-settlement cash advance?
Apply for lawsuit funding and qualify within as little as 24 hours.
If you have any specific questions or concerns about lawsuit loans, please do not hesitate to reach out to our legal funding specialists today. We are more than happy to help.