What Does Non-Recourse Mean in Regard to Pre-Settlement Funding?
When you’re involved in a lawsuit and you’re seeking compensation for injures and damages you’ve suffered, you may find that the process is moving more slowly than you’d thought. While you may have strong evidence to support your side of the story, it can still take weeks or months for there to be a verdict. The medical bills or other expenses you’ve incurred because of your injuries may be due now and you may not be able to cover those costs without receiving fair compensation. In these cases, pre-settlement funding may help you move forward.
Applying for a lawsuit loan may provide you with the funds you need so you can take care of the financial losses that you’ve suffered because of another person’s negligence. As you look at your options, you may see the phrase “non-recourse” when referring to a loan. Let’s go over what that is and what it means.
What Is Non-Recourse Pre-Settlement Funding?
When a non-recourse pre-settlement loan is provided to the individual, the company lending the money is taking on most of the risk. While it is likely the individual will get compensation from their lawsuit and will be able to pay back what they borrowed using those funds, this may not always happen. If the individual has a non-recourse loan but do not get compensation from their case, the company that provided the loan will not get the money back.
This is different from other loans because in most cases, there is collateral involved in case the money cannot get paid back. But when this is in the framework of a non-recourse pre-settlement loan, the company expects that the lawsuit will work in the individual’s favor.
Non-recourse funding also has another interesting aspect: the background check. Before applying for a loan, an individual may need to make sure they have a lot of items in order. They have their employment history and credit check. For some, these two items may be enough to prevent them from getting the loan they need. However, that’s not the case with pre-settlement funding.
These items aren’t part of the background check. But this doesn’t mean that anyone can receive pre-settlement funding. Before the pre-settlement funding is provided, there is an application process. If the lawsuit seems like it will not go the individual’s way, then it’s unlikely the company would take the risk. They do this by communicating with the person’s attorney.
If you believe this may be an option for you, speak with your lawyer and then reach out to Preferred Capital Funding. It’s imperative for you to discuss this with your lawyer first. It’s possible they may not work with lawsuit funding companies and you won’t be able to proceed. However, if they will work with us, then their expertise is important to find the amount that your funding should be.
This way, you can avoid having an amount that’s too much—which could lead to repayment issues later on, or too little—which could mean that you haven’t completely resolved your financial issues. Once your lawyer determines an appropriate amount, you can go through the application process. If approved, you can get the funding you need and relieve the financial stress that’s been weighing on you.
When you have lawsuit funding from Preferred Capital Funding, you may worry about how you’ll pay back the loan if your lawsuit is successful. You can pay it back in one lump sum.
Get the Help You Need Today
At Preferred Capital Funding, we understand how devastating a personal injury can be. You may have suffered severe injuries that will need significant care that will take treatment and time to heal. Additionally, you are likely unable to work during this time. As the medical expenses and other financial losses become apparent, you seek legal representation so you can get full and fair compensation for your injuries and losses. Then you may soon find out that your journey to recovery is just beginning.
If your lawsuit is taking a long time to resolve, you’ll have your recovery, lawsuit, and your expenses weighing on you at the same time. When you’re dealing with this, you need a solution and financial assistance now.
Preferred Capital Funding offers pre-settlement funding so you’re able to cover those costs and turn your attention to the lawsuit and your recovery. Apply for the funding you need today.