Pre-Settlement Funding for Slip and Fall Cases: Pros and Cons

Pre-Settlement Funding for Slip and Fall Cases: Pros and Cons

Slip and fall accidents have the potential to cause serious injuries and costs for victims, usually resulting in costly medical bills, lost wages, and pain and suffering. In some cases, victims may be eligible to receive financial compensation from the party responsible for the accident; however, the process can take a while and they may be left with costly bills while they wait for their case to resolve. Pre-settlement funding can provide much needed financial assistance to slip and fall victims during this time of uncertainty.

In this article, we’ll discuss the pros and cons of pre-settlement funding for slip and fall cases. We’ll also explain how pre-settlement funding works, how it can benefit victims, and when it makes sense to consider it.

What is Pre-Settlement Funding?

Pre-settlement funding is a type of loan, also known as litigation funding, provided to plaintiffs during the period in which a settlement or judgment is pending. Pre-settlement funding provid es the plaintiff with cash that can be used to cover their expenses such as medical bills, rent, or car repairs. The loan is usually paid back after the plaintiff receives their settlement or judgment; however, if the plaintiff loses their case the loan may not need to be repaid at all.

Pros of Pre-Settlement Funding For Slip and Fall Cases

For slip and fall victims, pre-settlement funding offers a financial lifeline during their ordeal. Some of the main pros include:

1. Access to Immediate Funds: Pre-settlement funding provides injured victims with access to immediate cash, allowing them to cover immediate expenses associated with the accident such as medical bills or lost wages.

2. No Credit Checks: Pre-settlement funding does not require a credit check – unlike traditional lending, injured victims do not need to worry about their credit score when applying.

3. Lower Risk: Pre-settlement funding provides a low risk option to plaintiffs for covering their expenses. Since the loan does not have to be repaid if the plaintiff does not win their case, there’s no risk that a loan will add to the victim’s financial burden.

Cons of Pre-Settlement Funding For Slip and Fall Cases

Although pre-settlement funding offers significant benefits to slip and fall victims, there are some drawbacks that plaintiffs should be aware of.

1. High Cost: Pre-settlement funding can be costly due to the high interest and fees that may be associated with the loan. In some cases, plaintiffs may end up costing more in fees than they get in cash, which makes it important to compare the costs of different providers before selecting a pre-settlement funding option.

2. Repayment Terms: Pre-settlement funding is generally expected to be repaid after a plaintiff’s case is resolved; however, repayment terms may differ from lender to lender. If a case takes an unexpectedly long time to resolve, the plaintiff may have to repay the loan sooner than expected.

3. No Guarantees: Since pre-settlement funding does not guarantee a settlement or judgment, a plaintiff does not know for certain that they will be able to pay back the loan. This adds an element of risk to taking out the loan, which can be particularly concerning for plaintiffs who are already in a precarious financial position due to the accident.

When Does Pre-Settlement Funding Make Sense?

Since pre-settlement funding can be costly, it’s important to carefully consider whether it makes sense for a particular situation. In general, pre-settlement funding may make sense for plaintiffs who:

1. Need immediate access to cash in order to cover direct expenses associated with the accident and injury,

2. Have been unable to get a traditional loan due to a low credit score or lack of collateral,

3. Do not have family or friends who can lend money, and

4. Do not want to take on any more debt due to the accident.

Conclusion

Pre-settlement funding offers injured victims access to much-needed cash while they wait for their case to be resolved. Although it offers numerous benefits, pre-settlement funding can also be costly and risky; plaintiffs should carefully consider whether it makes sense for their particular situation before deciding to apply.