How long does it take to receive pre-settlement funding?
Pre-settlement funding, also known as lawsuit financing, is becoming increasingly popular among those who are in the process of settling lawsuits. It is a tool used to help those with financial needs while waiting on settlement money. But what is the time table for receiving pre-settlement funding? How long does it take?
In order to determine how long it takes for pre-settlement funding, it is important to understand how the process works. Pre-settlement funding is a loan-like cash advance provided to plaintiffs who are going through court cases or settlement process. The loan is typically offered by a third-party lender and is secured by the plaintiff’s future settlement.
The pre-settlement funding process begins when the plaintiff applies for funds. The application can be filled out online or through an attorney. The information provided by the plaintiff will be used to determine how much money can be offered. Generally, the amount offered will depend upon the amount of compensation that the plaintiff is asking for.
Once the loan is approved, the lender will then send the funds to the plaintiff’s attorney. The attorney will then provide the funds to the plaintiff so they can provide them with the necessary resources they need while they wait to receive the settlement money.
The time it takes to receive the funds will depend upon the lending company. Most companies will have the funds deposited in the plaintiff’s account within 24 to 48 hours, with some providing funding within the same day. However, the time it takes to receive the funds can be longer if additional paperwork is needed from the plaintiff or if there are delays caused by the court system.
Another factor to consider is the fees associated with pre-settlement funding. Generally, pre-settlement funding companies charge for their services. These fees are typically a percentage of the loan amount and can range from 20 percent to 40 percent. The fees can also vary based on the lender’s policies.
It is important to remember that pre-settlement funding is not a loan. It is a type of cash advance that is used to provide necessary resources to plaintiffs while they wait for the settlement. If a plaintiff does not receive the settlement money they expect, they will owe nothing and will never have to repay the funds they received.
So, how long does it take to receive pre-settlement funding? Generally, most lenders will have the funds deposited into the plaintiff’s account within 24 to 48 hours. However, additional documentation may be needed from the plaintiff, which can result in delays. Additionally, the fees charged by pre-settlement funding companies can range from 20 to 40 percent of the loan amount.
