Pros and Cons of Lawsuit Loans

pros cons lawsuit loans

It can take a long time for a lawsuit to be resolved. You may have stacks of bills that need to be paid, but you may not be sure how much longer you will need to wait to get your settlement check.

A lawsuit loan is a tool that provides a solution — it allows plaintiffs to get access to immediate funding while their case is still being processed.

That being said, getting a lawsuit loan is not right for every plaintiff or for every situation.

At Ally Lawsuit Loans, we are committed to offering plaintiffs the lowest interest rate lawsuit loans — guaranteed.

We want to make sure that you are able to make the best decision for your own circumstances. No-pressure legal funding is available.

Here, our team has put together a list of the pros and cons of applying for pre-settlement funding.

What You Need to Know About Lawsuit Settlement Loans

Pros: The Top Three Advantages of Obtaining a Lawsuit Loan

  1. A Cash Advance Can Tide You Over: First and foremost, the biggest advantage of getting a pre-settlement lawsuit loan is that you can get access to money now. If you are unable to cover your bills or you are in a particularly tight financial situation, a lawsuit cash advance offers an immediate solution. You will get the financial breathing room that you need.
  2. Your Attorney May Be Able to Get a Better Settlement: In some cases, a lawsuit loan can actually help plaintiffs obtain a better settlement offer. Without immediate financial pressure to settle your case, your attorney will have more time to build and present a strong, compelling case. Do not let an insurance company pressure you into accepting an unfair, low settlement.
  3. You Pay Nothing if You Lose: Finally, you can get no-risk legal funding. At Ally Lawsuit Loans, we offer our clients zero risk cash advances. If they do not win their case, they do not have to pay back the loan. End of story. For example, if you receive a car accident settlement loan from us, and then, for whatever reason, your attorney is unable to settle your case and recover compensation for you, you have no further obligation. You get to keep the money.

Cons: Two Potential Disadvantages of Getting Lawsuit Funding

  1. There are Financial Costs: The primary drawback of getting a lawsuit loan is pretty simple: it costs money. Legal funding is not free. For this reason, you should never take a larger lawsuit loan than you actually need. You should also be sure to find a pre-settlement loan that offers the lowest fees and interest rate. As explained by Investopedia, the cost of interest will compound over time.
  2. You May Not Qualify: Another downside of applying for a loan is that your case may not actually qualify for funding. To get a lawsuit loan approved, there are some requirements that must be satisfied. Our legal lending specialists will work directly with your attorney to determine if you are eligible to receive a pre-settlement cash advance. We understand that it can be frustrating to go through the application process only to be denied in the end. Our team works hard to provide flexible funding solutions for plaintiffs.

Apply for a Lawsuit Loan Today

At Ally Lawsuit Loans, we always encourage our clients to request only what they need to pay their bills while they are awaiting their settlement or judgment. You can always come back to us and get a second lawsuit loan.

To apply for legal funding, please do not hesitate to contact us today. We look forward to assisting you.

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