Category:Settlement Loan

A settlement loan is an advance against a personal injury or commercial litigation lawsuit. Most settlement loans come as non recourse meaning you only repay the loan if you are successful in winning a cash award for your case. A settlement loan can be given to a plaintiff before or after a settlement has been reached or a verdict is won.

When a person secures a settlement loan before a verdict it is most often referred to as pre settlement lawsuit funding. If a case has been won and the plaintiff is waiting for a compensation check, the type of loan is most often referred to as post settlement funding.

A settlement loan can also be paid out against a structured settlement. A structured settlement is sometimes preferred by a plaintiff after a case has been won. When a plaintiff decides to be paid compensation over a set period of time rather than a lump sum, they will receive structured settlement payments. Similar to pre settlement, a settlement loan for a structured settlement can be advanced against future payments.

A settlement loan is a way for a plaintiff to pay down certain expenses while a case is in litigation. A settlement loan is most commonly used during a personal injury or commercial litigation case. If a person secures a settlement loan they will agree to pay the lender a certain percentage over and beyond the money borrowed. If the case is lost the borrower doesn't repay the loan.