Top Reasons Why Plaintiffs Get Denied for Lawsuit Funding

lawsuit funding

When you’re involved in a lengthy lawsuit, your cash flow may run low as your stress runs high.

While your attorneys spend months negotiating a settlement, your bank account plummets. You may worry about paying your bills and wonder where to find funding for a lawsuit.

We have a simple lawsuit funding suggestion. During this long settlement process, you can apply for a lawsuit cash advance.

You may have some questions about a settlement advance.

  • What is a settlement advance?
  • How do you qualify for a cash advance?
  • Why would you get denied funding for a lawsuit?

Keep reading for answers to common lawsuit funding questions.

What is a Settlement Advance?

A settlement advance involves you borrowing from your future settlement award.

The simple process follows these four steps:

  • You apply with a lawsuit funding lender.
  • The lender talks to your attorney about the merits of your case.
  • The lender informs you if you qualify for a lawsuit cash advance.
  • The lender delivers your cash advance within 24 hours.

You don’t pay back your lawsuit advance until you receive your settlement award. If you don’t win your lawsuit, you owe nothing on your lawsuit cash advance.

How Do You Qualify for a Cash Advance?

Lawsuit cash advances differ from other loans.

For traditional loans, lenders qualify the borrower based on credit score and income. Instead, for lawsuit funding, lenders evaluate the borrower’s potential settlement.

Lenders gain the confidence to fund your lawsuit if they think that you are likely to win a substantial settlement.

After you apply for a settlement advance, the lender investigates your potential to win a settlement award. The lender calls your attorney to see where your case stands.

From this communication, the lender wants to learn a few things about your case:

  • How likely are you to settle?
  • When are you expected to settle?
  • How big of a settlement should you receive?

These case factors determine whether you qualify for a lawsuit cash advance.

Why Would You Get Denied Funding for a Lawsuit?

If a lender denies you a cash advance funding for your lawsuit, you probably feel disappointed. You may wonder what factors lenders evaluated before denying you funding.

There are several reasons why a lender may decide not to fund your lawsuit cash advance.

Cash Advances Violate State Law

Most states allow lawsuit cash advances. However, there are a few states that prohibit this form of financial assistance. Currently, three states ban settlement cash advances:

  • Maryland
  • Colorado
  • Tennessee

If you live in one of these three states, a lender cannot provide you a lawsuit cash advance. Even if you have a strong case, state law prohibits a lender from offering you an advance.

You Don’t Have an Attorney

A lender needs to speak to your attorney before offering a lawsuit cash advance.

If you don’t have an attorney, the lender cannot make an informed decision on your loan.

Even if you present a strong case, the lender needs to understand where you stand legally.

Hiring an attorney increases your settlement potential and settlement amount significantly.

A lender insists that you hire an attorney because the lender wants you to have the best chance at winning your case.

Hire an attorney to expedite your case and your potential for a settlement cash advance.

Most personal injury attorneys work on a contingency fee, meaning that you don’t have to pay your attorney up-front.

The contingency fee varies by the attorney. You should read your attorney-client contract carefully to make sure you understand contingency fee details.

A lawyer working on contingency wants your case to settle for as much as possible.

This motivation should make an attorney work even harder for you.

Consult several attorneys, and sign on with the one who seems like your best advocate.

You Have Other Funding

If you already have a cash advance, that doesn’t automatically disqualify you from obtaining a new settlement advance.

The second advance functions as a lower interest refinance on the previous settlement advance.

However, if you owe more than a lender thinks your settlement is worth, the lender won’t issue another advance.

After all, the lender needs to believe that you can pay back the advance.

Lenders don't issue a predetermined cap on cash advances because each case is unique.

Each advance depends on the settlement potential of the associated lawsuit.

If your previous advance balance falls below your potential settlement, a new lender could offer you another cash advance.

Get Pre-Settlement Funding Now

Even if a lender has denied your settlement advance before, we will give it a second look.

Some of the factors that disqualified you previously may have changed.

If you need cash while you wait for your lawsuit settlement, call us at (800) 760-0704 or apply today!

Pending Lawsuit Loans: 5 Facts That Most Lenders Don’t Want You to Know

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If you file a lawsuit, you may find yourself waiting several months or even years for an appropriate settlement. Unfortunately, this leaves many plaintiffs financially unstable, especially if a claim-related injury prevents them from working. When you find yourself in this situation, a cash advance on a pending lawsuit could help.  Pending settlement loans or pre-settlement loans help plaintiffs regain financial independence while they wait for a settlement.  However, many lawsuit loan companies who offer these loans aren’t upfront about the application process and the overall cost of a cash advance on a pending lawsuit. Here are five facts about pending lawsuit loans that other lenders don’t want you to know. #1: Pending Lawsuit Loans Are 10-20% of Your Case Value Typically, most lenders disburse a cash advance on a pending lawsuit equal to 10-20% of the settlement value. They determine this amount based on the severity of your injuries, the length of your case, and your own estimate. To get the best estimate, discuss the value of your potential settlement with your attorney before applying for a pending lawsuit loan. #2: Lenders Put High-Interest Rates on Pending Lawsuit Loans There are sharks in the lawsuit loan industry who charge upwards of 200% interest. Don’t select a lender that charges more than 1-3% monthly or 12-36% annually. Only take out a cash advance for a pending lawsuit that covers basic living expenses and necessities.  #3: Pending Lawsuit Loan Brokers Have Expensive Service Fees Always avoid working with brokers that deal with direct loan companies. These brokers usually add 15-20% to the cost of your pending lawsuit loan. They also send your case information to dozens of companies who may call your attorney without your consent. This unnecessarily diverts your attorney’s attention from your case. #4: Lenders Cannot Disburse Pending Lawsuit Loans Until They Review Case Documents from Your Attorney Make sure you collect the following case documents from your attorney prior to applying for a pending lawsuit loan: Medical reports;Police reports;A copy of your complaint; andYour demand letter. Most lenders request this information from your attorney when reviewing your application. To save time waiting for your cash advance on a pending lawsuit, prepare these documents before you apply for a pending lawsuit loan. #5: Attorneys Respond to Lenders Faster If You Talk to Your Attorney Before Applying Always give your attorney a heads-up before applying for a pending lawsuit loan. This helps them prepare documents requested by the lender. Since lenders cannot disburse your cash advance until they review your case, you should keep your attorney and your lender in sync. Related: Lawsuit Loans Without an Attorney Contact Ally Lawsuit Loans About Applying for a Pending Lawsuit Loan Today If you need a cash advance on a pending lawsuit to help with bills or living expenses, contact Ally Lawsuit Loans. We have the lowest interest rates in the industry and review applications within 24 hours. In addition, we work on a contingency fee basis, which means you repay nothing if you lose your case. To apply for a risk-free, low-interest rate pending lawsuit loan, call us today at 844-545-6246 or apply now.

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How to Find the Best Lawsuit Loan Companies

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If you need financial stability while waiting to settle your lawsuit, you’re probably aware that there are several pre-settlement loan companies who want a portion in exchange for a cash advance. It is essential that you know how to separate the best pre-settlement loan companies from the deceptive ones. The lender you choose has an impact on the amount of money you receive from your settlement, so it’s very important to do research into potential lenders to make sure the company you choose is a good fit. Here’s how to find the best lawsuit loan companies for your case. Top 5 Questions to Ask a Lawsuit Loan Company While looking for the best lawsuit funding companies, it is important to ask each lender questions that help you gauge the potential cost of the loan. Asking these questions will help you choose the best lawsuit pre-settlement loan company. #1: How Do You Set Interest Rates on Pre-Settlement Loans? The best lawsuit loan companies determine interest rates on a case-by-case basis based on the strength of each case. Interest rates largely depend on the likelihood of your case resulting in a good settlement or verdict. Do not work with a pre-settlement funding company that charges the same interest rate for every customer. #2: What is the Interest Rate for My Pre-Settlement Cash Advance? When you get an offer for pre-settlement funding, a lender should tell you upfront what your interest rate is before you sign paperwork. The best lawsuit funding companies will usually give you an interest rate between 1-3% monthly. If a lender gives you a rate higher than 3%, consider looking for another offer. #3: What Are the Terms and Conditions of the Loan? Since filing for a lawsuit is very overwhelming, the terms and conditions of pre-settlement funding should be simple. The best settlement loan companies offer clear, concise terms and conditions for their loans. Never work with a lender that refuses to answer questions about the terms of your loan. #4: Will You Discuss My Funding Application With My Lawyer? Before you get a pre-settlement loan, you need to be represented by a lawyer and have a lawsuit filed on your behalf. The best lawsuit loan companies will always ask to speak to your lawyer about your case when you apply for funding. Your lawyer gives the lender information about your case to assist in case evaluation and underwriting. #5: How Quickly Will I Get My Pre-Settlement Cash Advance? Since reputable settlement loan companies don’t require a credit or background check, most lenders transfer money to you within 24 hours of approval. Best Lawsuit Loan Companies Below is a list of the top 10 settlement loan companies to compare when shopping around for lawsuit funding. Make sure to consider all of your options. Ally Lawsuit LoansPeachtree Financial SolutionsOasis Legal FinanceThe Legal Funding GroupBuckeye Legal FundingPrime Case FundingMomentum FundingFair Rate FundingCase CashCherokee Funding Why You Should Choose Ally Lawsuit Loans If you are trying to find the best lawsuit loan companies, consider funding from Ally Lawsuit Loans. At Ally Lawsuit Loans, we understand how difficult it is to maintain financial stability during a lawsuit. We provide legal funding for those waiting on their settlement for cases ranging from personal injury to workers’ compensation. Lowest Rates Guaranteed No matter what type of case you have, we guarantee the lowest rate in the industry. If you find a low-interest rate while searching for the best pre-settlement loan companies, we will beat it. Risk-Free Our loans are 100% risk-free. That means if you don’t win your case or get a settlement, you pay us nothing. Quick and Easy Application Assuming your case is a good fit, we send you a cash advance within 24 hours of application approval. Contact a Reputable Settlement Loan Company Today If you need a risk-free, low-interest rate loan to keep your head above water while waiting for a settlement, give Ally Lawsuit Loans a call today at 844-545-6246 or apply now. We offer the lowest interest rates in the industry and provide cash advances within 24 hours of approval.

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How to Find the Best Lawsuit Funding Rates

| Read Time: 3 minutes

If you need pre-settlement funding for your lawsuit, it is essential to shop around for the best lawsuit funding rates. Many legal funding companies offer pre or post-settlement loans and cash advances to plaintiffs in exchange for a portion of their settlement. In many cases, lawsuit loans help people avoid financial difficulties like foreclosure, eviction, utility shut off, bankruptcy, and debt collection. However, since pre-settlement loans often cost more than a personal loan from a bank, you should make sure to get the best pre-settlement funding interest rates. What Are Typical Lawsuit Funding Rates? Lawsuit funding rates depend on the value of your case and the amount of risk associated with it. Since lending money towards a legal settlement is very high, interest rates are usually higher than a personal loan. The return for lawsuit loan lenders is contingent on you winning your case, so there’s a chance that they lose their money. For example, if you pay back a $5,000 lawsuit loan with a monthly interest rate of 3% in six months, the lawsuit loan lender gets $5,900 from your settlement. However, they do not get a full $900 return. Most lenders have a loss of 8-10% in addition to the money they pay to borrow capital. In the case of the $5,000 loan above, the lender has $300 in costs and $472 in losses. This means that it costs the lender $5,772 to give you the loan. Once you pay back the loan with interest, they only make $128. For this reason, most pre-settlement funding interest rates are 1-5% monthly. How Much Will My Funding Cost? The cost of your funding depends on the value of your case and how much funding you need. These two factors help a lender determine their lawsuit funding rates. If your case carries high risk, you may have a higher interest rate. Are There Any Hidden Fees or Rates? At Ally Lawsuit Loans, there are no hidden fees or rates. However, other lawsuit loan lenders may charge additional processing fees for their cash advances. Make sure to ask about potential fees when shopping around for the lowest pre-settlement funding rates. How to Get the Best Lawsuit Loan Interest Rate If you want to get the best lawsuit funding rates, you should find a reputable lawsuit loan company that answers your questions upfront. Here are some ways you can ensure you get the best rate. Ask the Lender What Their Pre-Settlement Interest Rates Are It is important to ask every lender what their rates are over the phone or through email. Advertisements provide a range of rates because the rate often depends on the case. Get Lawsuit Funding Rates in Writing When a lender offers you a rate, always ask for the quoted rate in writing. This will help you shop around for the best interest rate and prevent deceitful lenders from making a false claim on their pre-settlement funding rates. Get Funding Through Ally Lawsuit Loans Today At Ally Lawsuit Loans, we make the lawsuit loan application process easy. Whether you suffer from a personal injury or are fighting for workers’ compensation, we are here to help you maintain financial stability. We offer the lowest pre-settlement funding interest rates in the industry guaranteed. Most importantly, our funding is risk-free. If you do not win your case, you do not need to pay us back.  If you want the best lawsuit funding rates, apply now or give us a call at 844-545-6246 to get started. We approve applications for funding within 24 hours. Reviews of Lawsuit Funding Companies Find the best reviews from around the web of lawsuit loan companies and hear what others have to say about their experience with some lawsuit companies. We have taken an approach to gather some of the best reviews for some lawsuit companies out there.

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