How To Distinguish Between Perception And Reality: Settlement Loans - 5 Keys

Really rewarding projects (e.g., procuring lawsuit loans and settlement loans) generally require several steps for successful completion. Most rewarding tasks take some time, demand several steps along with consistent effort and hard work. You will have to prepare properly, get a clear mental picture of what must be done, then stick to your plan. Whatever your plans here, do not expect any exceptions to those requirements.

But it's not so difficult. You simply break it into basic steps and take them one by one...

Here is how you can distinguish between perception and reality when it comes to settlement loans and lawsuit loans in just 5 simple steps:

Step 1. You need to understand that lawsuit settlement loans, settlement loans, lawsuit loans, legal funding, and lawsuit cash advance are terms referring to a type of non-recourse funding. (Non-recourse, for our purposes, simply means that if you lose your lawsuit, you repay nothing!)

Like many, you may be wondering how you can access this money. This article will address both perceptions and realities involved in the settlement funding industry. The main reason this is very important is the fact that false perceptions may result in disastrous consequences! Grasping reality may enable you to reap vast rewards.

Step 2. Realize that the perception is that settlement loans and lawsuit loans are available to all individuals who file a lawsuit. The reality is that lawsuit funding companies will carefully review all relevant documents prior to releasing any monies to applicants. This is one of many reasons that a lawsuit loan broker can be an invaluable resource. This is a critical step, so give it your complete attention. This is how to do it the best way, for the best results. It is vital to note that a lawsuit settlement loan is made available to a plaintiff involved in litigation. In essence, the funding-entity assumes interest in the underlying litigation in anticipation of receiving a “risk-fee” on the funds advanced. As previously stated, a plaintiff is not required to repay monies advanced if he loses the lawsuit.

The perception is that a plaintiff need not repay the funding advanced only if he loses. The reality is that, with a competent attorney, the plaintiff may be able to force the defendant to repay monies advanced. The reason why this is important is that if lawsuit loans and settlement loans are obtained for “necessaries” of life," the defendant may have to repay all monies advanced.

Step 3. It is significant to note that factors such as credit history, current employment and current income are not factors in assessing whether a plaintiff will receive a settlement loan. You do this so you can understand that it is the underlying lawsuit, not the plaintiff that serves to "collateralize" the funds advanced. Another reason for this is just to appreciate the fact that you needn't worry about your personal "credit-worthiness" to obtain settlement funding.

Step 4. The perception is that plaintiffs may receive lawsuit loans amounting to a large cash-advance in any lawsuit. The reality is that only 10% of the projected value of the underlying claim will be made available to applicants. Once again, a knowledgeable lawsuit funding broker is often able to assist applicants in presenting the best-case scenario to funding-entities. To flesh that out a little bit, remember that the perception that plaintiffs must repay the full amount advanced, plus the interest and fees, is false! The reality is that there are no interest fees. This is due to the fact that the funds advanced are not loans and, thus, there are no interest fees.

Step 5. Disregard the perception that some lenders have high rates of interest on funds advanced. The reality is that the only fees assessed are “risk-fees” - fees contingent on the risks inherent in the underlying litigation. Also, lawsuit loans and settlement loans are not only for those who are in dire need of financial assistance. The reality is that that settlement funding and lawsuit funding may prove to be lifesavers, but should be considered by all individuals who seek litigation funding to avoid being pressured into settling for ridiculously low settlement offers.

In the end, if you decide to follow the above steps with care, you are going to overcome the difficulties and achieve your goals, together with the many benefits and the fruits that implies! Pat yourself on the back, and be proud of yourself. It is your victory to enjoy! It is your chance to elevate the bar for others to try to follow! Now smile and enjoy the benefits you'll have gained!

If you did not follow the above steps, ah well, "C'est la vie". Not everyone succeeds, only those that plan for it...

Do you think a lawsuit settlement loan is right for you? Would you like to learn more about lawsuit loans? Please visit us today and you may apply online for lawsuit funding and learn more about the benefits of settlement loans.