Characteristics Of A Lawsuit Advance
A lawsuit advance is only something that is able to obtained if you have a pending lawsuit and need funds to help pay your bills. The companies you have to contact for a lawsuit advance are “lawsuit funding” companies. Thrivest Link is one of these many companies and we help with anyone approved for lawsuit funding. For approval you do have to submit all required documentation and have a attorney working on your behalf. After approval, you only have to repay the lawsuit advance if you win your case.
How Is A Lawsuit Funding Different From A Consumer Loan?
For starters a consumer loan is something anyone one can get as long as their financial history is in order. In addition to this, a consumer loan requires more of a background check on your credit score, income, etc. Moreover, you will have to repay a consumer loan once you’ve received the funds. Furthermore, you would not have to file a case to recieve a consumer loan. Funds from a consumer loan can be used for anything, while lawsuit funding is meant to help financial issues while a case is pending.
More Differences Between A Lawsuit Advance And A Consumer Loan
1. Settlement Funding Involves More Risk
Lawsuit funders take on more risk than consumer loan lenders. This is due to the fact that lawsuit funder deals involve multiple parties. Consumer loan deals only involve two parties which are the lender and person seeking the loan. Due to the risk being higher this can effect the interest that are charged to you.
2. The interest rates can be higher for lawsuit funding
Being that we lawsuit funders take on such a high risk for providing settlement funding, we do require a higher return. Which will cause higher interest rates once you win your case. On the contary, a consumer loan has a lower interest rate because of usury laws. Usury laws are regulations to prevent higher rates on loans.
3. You Will Have To Pay Recurring Payments For Consumer Loans
As explained before consumer loans have to repaid no matter what, so lenders will setup recurring payments with you to get back the funds they provided. These payments also do include interest added on the original amount. Furthermore, this payment arrangement can occur a little after you get funds. However, with a lawsuit advance does not require a repayment right away. This is due to the fact that pre-settlement funding is only provided when a person needs to pay bills while they wait for their case to be resolved. Additionally, cases can take months, or even years to get a final decision.
4. Consumer Loans Have The Risk Of Causing Bankruptcy
A person may have a hard time paying back a loan, but lenders will still seek repayment. Additionally, this can cause collection efforts and even garnishments. Ultimately, this would lead you to file bankruptcy if you are having a difficult time making payments. On the other hand, settlement funding would not cause you to file bankruptcy.
5. Settlement Funding Companies Review More Than Just Your Finances
More details are looked into when you apply for settlement funding than just your finances. For instance, Thrivest Link reviews what state your case is in, the status of your case, and even more information. As stated previously, a lawsuit advance is only provided for a pending case, and this is why settlement funding companies have to do the necessary research before funding is provided. In contrast, your financial history is the only thing that is reviewed before you receive funds from a consumer loan.
A consumer loan is very much different from a lawsuit advance. Many people usually think both are the same due to both providing an advance on funds. This couldn’t be anymore further from the truth being that both of these advances are miles apart form one another. You should only consider lawsuit funding if you have a pending case and are in dire need of funds to pay your bills. If you are in a situation like this currently, then feel free to apply with Thrivest Link to get settlement money now!