Just as with post-settlement funding, a pre-settlement loan or funding provides plaintiffs with non-recourse funding for essential living needs. This is issued to them while plaintiffs are still awaiting the outcomes of their case or the trial. The pre-settlement funding assists the lawyers of plaintiffs to spend more time negotiating a settlement with defendants.
Approvement of pre-settlement funding is solely based on the strength of the plaintiff’s case. Insurers and financial providers who offer pre-settlement funding will review the plaintiff’s case to ensure that the loan or investment will generate profit once the case has been settled.
Once a plaintiff or their lawyer has submitted a pre-settlement funding application to the insurer – a team of underwriters will review the case and the possible outcomes thereof.
Once the pre-settlement loan of funding has been submitted, a team of underwriters will review the case. In doing so, they will seek out:
Pre-settlement funding will not impact the credit score of the plaintiff and is used to ensure a plaintiff can sustain themselves while awaiting the outcomes of their lawsuit.
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