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How To Choose the Right Pre-Settlement Lawsuit Funding Company in New York

The Benefits of Pre-Settlement Funding for Car Accident Injury Plaintiffs There’s no doubt about it: The road is a dangerous place. In a given year, the United States sees over five million medically consulted injuries and over 40,000 fatalities from car accidents. Besides causing physical pain, debilitating injury, and mental anguish, auto collisions can be expensive. If you also can’t work because of your injuries, things can feel overwhelming in a hurry. Car accident lawsuits offer hope for financial relief. Unfortunately, they can take months or years to resolve. What do you do in the meantime? Rather than hastily accepting a settlement offer from the insurance company, consider seeking car accident lawsuit funding. Legal funding for pending lawsuits helps fill the gaps until your case settles. You can think of it as a pre-settlement cash advance. Unlike most cash advances, however, you won’t need to pay it back if your case doesn’t go your way. This post covers eight benefits of pre-settlement accident lawsuit funding for plaintiffs. 1. You Can Use It for Anything You may struggle to pay your bills if you’ve been involved in a serious crash. Beyond everyday expenses like housing and food, you may now face exorbitant medical expenses and costly car repairs. Thankfully, you can use pre-settlement funding for just about anything you need, including the following: Housing Groceries Healthcare expenses Child care or school tuition Utility bills Credit card debt Vehicle repairs or payments Other transportation costs 2. Financial Relief Comes Quicker Lawsuits typically don’t move fast, but auto accident lawsuit funding often does. If you qualify, you may receive cash for your lawsuit in as little as 24 hours. Typically, all the pre-settlement funding company requires is a quick consultation with your attorney to understand the merits of your car accident case. The lender will then review your case documentation and likely notify your lawyer within 24 to 48 hours. 3. It Gives Your Attorney More Time To Work Strong personal injury cases take time to prepare. Your attorney may need to interview witnesses, track down surveillance footage, locate medical records, and consult accident reconstructionists. If you’re struggling financially, you may feel pressure to accept the first settlement offer you receive. Pre-settlement funding gives you and your attorney the time to build a better case and negotiate a fair settlement. 4. It Gives You More Time To Recover According to the National Safety Council, motor vehicle collisions are the third-leading cause of preventable injuries in the United States. Car crashes can cause anything from bruises and broken bones to spinal cord damage and traumatic brain injuries (TBIs). If you’re worried about losing your home or putting food on the table, you’re probably not resting and recuperating as you should. Securing lawsuit funding before your settlement gives you breathing room to focus on your health and family. 5. You Don’t Need Good Credit Your credit score is the last thing you need to worry about during your recovery. Pre-settlement lawsuit cash advances don’t require a credit check — or collateral. Instead, pre-settlement funding companies base their decision on the strength of your case. They work with your attorney to understand your chances of winning, whether you were negligent in the accident, your insurance policy limits, and the settlement amount you seek. 6. There Are No Monthly Payments Unlike a credit card or traditional loan, pre-settlement funding does not require monthly payments. Instead, you will repay the loan from your final settlement amount when your case is resolved. That means you owe nothing until (and unless) you collect a settlement. 7. Applying Is Simple — and Free To see if you qualify for legal funding, you can call the pre-settlement financing company or fill out a form online. You generally need to provide only the basic details, including your name, contact info, and attorney’s information. To apply, you must typically be at least 18 years old, have already filed a personal injury claim, and have hired a contingency-based lawyer. You shouldn’t need to pay any upfront or out-of-pocket costs. 8. You Owe Nothing If You Lose Your Case If you qualify for pre-settlement funding, you receive a percentage of the estimated value of your settlement — typically 10% to 20%. One of the best parts of pre-settlement funding is that it is a non-recourse loan. That means you owe the lender nothing if your car accident case does not go your way. Need Lawsuit Financing Before Your Case Resolution? Contact Us Today! Do you have a pending lawsuit but need money now? Contact Apex Legal Funding, LLC to learn more about pre-settlement lawsuit funding for car accidents. Whether you have questions about the process or want to schedule a free consultation, call us today at 1-800-377-4934. FAQs How long do car accident cases take to settle? Car accident cases can take from as little as a month to two years or more to settle. The timeline depends on factors like the complexity of your case, the severity of your injuries, and the level of cooperation between the two parties. What is a fair car accident settlement amount? A fair car accident settlement amount provides reasonable compensation for the losses you have suffered. While there is no exact formula to determine the value of an injury claim, a fair settlement covers your medical expenses, lost income, and past and future pain and suffering. Where does settlement money come from in a car accident case? Settlement money in a car accident case typically comes from the other driver’s insurance company or your own insurer. You may consider seeking pre-settlement funding to help you bridge the financial gap until your lawsuit is resolved. Do I need an attorney to reach a car accident injury settlement offer? You do not need an attorney to reach a car accident injury settlement offer. However, experienced attorneys are invaluable for negotiating with insurance companies, calculating fair settlement amounts, and protecting your legal rights. You typically need an attorney to qualify for pre-settlement funding for lawsuits.

According to New York State, over 155,000 people sustain injuries that require hospitalization annually. Serious accidents can cause physical pain, emotional stress, and financial hardship. Whether you’ve been involved in a car crash, a slip and fall, or medical malpractice, you may face mounting medical bills and lost income.

Thankfully, personal injury lawsuits provide a potential avenue for you to recoup some of your expenses. But how do you survive financially while waiting for the resolution of your case? The answer for many people is pre-settlement lawsuit funding.

If you’re seeking pre-settlement funding in New York, keep reading for more information on how the process works and choosing the right lending company. 

How Does Pre-Settlement Funding Work?

Pre-settlement funding allows you to borrow against the settlement or award you expect to win in your lawsuit. The lender may charge you a flat fee or a percentage (usually 2.99%-3.5% per month) of the expected compensation. According to the Bureau of Justice Statistics, you could qualify for $3,100 to $6,200 of the average personal injury settlement of $31,000.

Potentially strong and valuable claims may merit larger settlement advances. While such high-dollar cases are less common, New York City paid $9 million in a medical malpractice settlement in 2022.

When making approval decisions, a legal financing company will evaluate the merits of your case, including the following:

  • Amount and type of damages, such as lost wages, medical bills, and pain and suffering
  • Your liability for the accident, if any
  • Upper limits on insurance coverage

Why Should I Choose Pre-Settlement Funding Over a Bank Loan?

Pre-settlement funding differs from traditional bank loans in the following ways:

  • Lawsuit cash advances allow you to borrow against your potential case award. Typical bank loans require you to pledge your existing assets as collateral. 
  • Rather than qualifying you based on a credit score, pre-settlement lenders consider the likelihood of winning your case and its potential value.
  • Unlike conventional bank loans, lawsuit financing companies don’t typically require a credit check or proof of employment. 
  • Most pre-settlement funding doesn’t require monthly payments, while traditional loans do.
  • Litigation finance companies offer non-recourse loans, so you don’t owe them anything if you lose your case. This differs significantly from a bank loan, in which the lender can access your car, your home, or other assets if you default.

5 Questions To Ask Your Pre-Settlement Funding Company 

You’ll want to ask the following questions when looking for the right lawsuit funding company:

1. Do you charge interest or a flat fee?

Some legal lending companies charge a flat fee for cash advances, while others charge interest as a percentage of the funding amount. If the company you choose charges interest, ensure it is typically 2.99% to 3.5% monthly. Steer clear of lenders charging exorbitant rates.

2. What rate and terms apply in my case?

Understand the exact rates, terms, and conditions before signing any contract. The company should clearly state its fees, interest rates, and funding process. Their contracts should be easy to understand, and their representatives should answer any questions you may have.

The honesty, clarity, and responsiveness of their communication indicate the quality of the lender. This can help you avoid companies that have hidden fees or offer things they can’t deliver. 

3. Are there any out-of-pocket costs? 

Choose a company that does not require you to pay any upfront or other out-of-pocket fees. If a lender charges to process your application, look elsewhere for funding.

4. How quickly will I receive the funds?

Look for companies that can process your application and distribute funds quickly. Some legal funding companies can pay within 24 hours of approving your application. But since payout speed isn’t the only consideration in choosing a litigation lender, look at other factors.

5. How closely will you work with my lawyer?

To qualify for a pre-settlement loan, you must have already hired an attorney and have filed a lawsuit. Reputable legal financing companies will always speak with your lawyer before agreeing to offer funding. Your attorney provides important information to help the lender understand the merits and value of your case. Avoid working with companies that offer to make decisions without consulting your lawyer.

5 Tips for Choosing the Right Pre-Settlement Lawsuit Funding Company in New York

Beyond the questions above, consider the following factors to select the right legal funding company:

  1. Reputation: Quality legal lenders have positive online reviews and a good standing in the industry. They should also be able to provide you with references or testimonials from previous clients.
  2. Experience: Companies with more years of experience know the ins and outs of the industry, offering you a smoother process and more reliable advice. Financial stability will also help ensure they can provide the funding you need.
  3. Professionalism: All customer service representatives should be friendly, respectful, helpful, and responsive. 
  4. Location: Many lawsuit lending companies require borrowers to live in-state. Choosing a local NY company also helps ensure your lender knows your jurisdiction’s relevant laws and legal procedures.
  5. Transparency: Seek out companies that are upfront about what they can offer, state their terms clearly, and have a simple application process.

Is Apex Legal Funding Right for You?

Apex Legal Funding offers various types of pre-settlement lawsuit funding for plaintiffs struggling to make ends meet. To determine whether you qualify for a 24-hour cash advance, call us today at 800-377-4934 for a free consultation. 

Frequently Asked Questions

Can I borrow money from a pending lawsuit?

Yes! You can receive a cash advance on your expected lawsuit award or settlement amount if you qualify for pre-settlement funding.

Are pre-settlement funding safe?

Pre-settlement, non-recourse loans from reputable lenders are safe because you don’t have to repay the funding if you lose your case. However, many cases take years to conclude, and many pre-settlement loans accrue interest, so ensure you understand the terms before committing. 

Do banks offer pre-settlement lawsuit funding?

Banks do not typically offer loans for pre-settlement lawsuit funding because of the risks involved in offering a loan with no collateral.

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