The best thing about dealing with an individual or a company that has several years of experience in their respective field is that they know how to get things done. Settlement Lenders Inc. (settlementlenders.com) has 30 years of experience in the settlement lending field. With over $100,000,000 in loans provided and over 100,000 clients served so far, Settlement Lenders is one of Canada’s prominent settlement lenders. In fact, Settlement Lenders was the first company that started offering settlement loans of any kind in Canada.
Settlement loans and settlement lenders
A settlement loan or a pending lawsuit loan is a loan that a plaintiff can take from a settlement lender against the future settlement proceeds. A lawsuit, for example, a personal injury lawsuit can go on for months or even years. You may suddenly find yourself strapped for cash because of the unexpected medical bills or you may find yourself unable to work because of your injury. A settlement loan will help you in such a situation. You only have to pay the loan back after your case is settled. If the case is not settled or if the case is lost, then you do not have to pay the settlement loan back.
A settlement lender will provide a settlement loan to a plaintiff only after carefully considering the merits of the case. If the case is lost or not settled, then they will have to bear the loss. As a result of this ‘risk’ factor, settlement loans usually have a higher interest rate.
Facts that a plaintiff should be aware of a pending lawsuit loan
- Interest rate – Unlike commercial loans, the interest rates of settlement loans are not fixed. The fees or the interest rates associated with settlement loans are usually high but companies like Settlement Lenders offer different payouts to their clients in order to lower the interest amounts.
- Lawyer – You will need a lawyer to apply for a settlement loan. Most of the settlement lending companies will not entertain your loan application without a lawyer. The lawyer will provide all your case details to the lending company. You may even find the right settlement lending company with the help of your lawyer.
- Brokers – It is better to deal with a settlement lender directly than going via a broker. If you go through a broker, you will have to pay his/her fees. Also, a broker will send your case to different lending companies. They will all start calling your lawyer, and this will only get your lawyer aggravated.
- Personal use – You may use your settlement loan for personal use. You may buy groceries, pay the tuition fees of your children or use it for surgical procedures to improve health and looks.
- Bad credit - Even if you have a poor credit record, you can still get a settlement loan. This is because a settlement lender will only look at the merits of your case, not your credit history.
Tips for plaintiffs planning to apply for a settlement loan
- Ask about the fees/interest rates before applying for the loan. If a lender does not give you specific answers, avoid that lender. Apply only after completely understanding about all the costs (hidden fees as well) involved with the loan.
- If your case has real potential, the settlement lender will have no qualms in offering you a higher loan amount. However, take only what you need.
- If you think that the defendant party is taking advantage of your financial crunch by prolonging the case to make you settle quicker for a lesser amount, then definitely go for a settlement loan.
- Sign a contract or a loan agreement with the lending company only after your lawyer has verified them.
The benefits of going with a reputable settlement lending company are many. For instance, the loan officers of Settlement Lenders are very knowledgeable and courteous, and they will walk you through all the steps in the settlement loan process. They will provide you with all the information, and get you the loan as soon as possible.