Financial assistance for lawsuit plaintiffs exists as lawsuit loans that provide cash advances before the case is settled. Typically, this type of funding is available for personal injury suits. What is the time frame for receiving a lawsuit loan? The answer can vary depending on certain factors. However, when an applicant is approved, and the necessary documentation has been provided, the advance could be made to the plaintiff within 48 hours.
In a transaction like this, the involved parties are the accident victims who filed the lawsuit and the legal funding company. The plaintiff’s claim must be legitimate, and the attorney representing the plaintiff is typically hired on a contingency fee basis. The lawyer only gets paid if the lawsuit ends in a favorable verdict or a settlement for the victim.
The lawsuit funding company skillfully evaluates cases and determines which ones have enough potential worth to merit the company’s capital deployment that will result in a profit. In essence, the lender is purchasing part of the lawsuit’s future proceeds. When the plaintiff receives a settlement or award, the cash advance is paid back to the lender from these funds. If the lawsuit does not end favorably for the plaintiff, no repayment is required.
Factors That Determine How Long Legal Funding Takes
The process of lawsuit funding is not complicated. If the case fits the basic requirements of being a civil suit and having a lawyer hired through a contingency fee arrangement, it can be considered pre-qualified. The process then goes as follows:
- Application data is submitted to the lender’s system
- A document request is sent to the applicant’s lawyer
- The lender receives and reviews the documents
- The lender conducts a brief conference call with the attorney regarding the case’s merits
- Upon approval, the lender drafts a contract and sends it to the applicant
- After the contract is signed by both the plaintiff and lawyer, a cash advance is sent to the plaintiff
Typically, delays occur if the applicant’s lawyer is unavailable during the process. Underwriters for funding companies are present all day to evaluate lawsuits to determine which ones are the best potential investments. Alternatively, lawyers are not always available. It’s not unusual to find an attorney unavailable during the lender’s first attempt to obtain documents or have a phone conference.
How Long Does the Application Process Take?
Pre-settlement funding is a non-recourse cash advance. If the plaintiff does not successfully settle or win the case, there is no requirement to repay the loan. This means no credit check is required. The cash advance amount is determined by the lender’s estimated valuation of the lawsuit and the plaintiff’s financial needs. As mentioned above, the lender reviews all documents pertaining to the case provided by the law firm, then conducts a phone interview with the plaintiff. Afterward, upon approval, the cash advance can be disbursed within 24 to 48 hours.
Other Issues Affecting the Length of Time for a Lawsuit Loan
If certain documents aren’t readily available upon request from the lender, this can impact the amount of time necessary to complete the process. For example, if relevant medical records, insurance information, or a police report from an auto accident lawsuit are not accessible, obtaining these records can delay the funding process. Each type of lawsuit has different documentation requirements.
Legal funding companies endeavor to streamline the process as much as possible. As mentioned earlier, delays in getting documentation or arranging a conversation with the lawyer can cause the application’s approval to take longer than expected. Other times, a slight delay may be experienced due to the execution of the funding documents.
How are the Funds Transferred?
Funding companies can use a variety of ways to send money. Of course, each way has its own variables of cost and speed. The plaintiff will need to determine which method is best. The following are likely available options:
- Wire Transfer – Without question, wire transfers are one of the quickest ways to get pre-settlement funds. This method involves removing money from the lender’s account electronically and moving it to the plaintiff’s or a relative’s bank account. Typically, the money appears in the account within a few hours. The whole method is deemed very safe.
- Overnight Check – This procedure allows for a check to be sent to any business or residential address and arrive the following day. This method is usually more costly than doing a wire transfer, but for those who have no bank account, this is a viable choice for quickly receiving funds. Upon receipt, the plaintiff can take the check to a store that specializes in check cashing.
- Checked by Regular Mail – Dubbed “snail mail,” the regular mail system is the slowest option, but an inexpensive way to get a pre-settlement cash advance. Depending on the plaintiff’s location, our Georgia office’s mail times can require 1 – 5 business days. If a plaintiff has a dire financial situation, using the regular mail option may not be the wisest choice.
Amount of Legal Funding
While legal funding is a beneficial way to help release a plaintiff from financial burdens during litigation of a lawsuit, it is advisable to only take the amount that is needed. The funds are designed to help pay bills, receive medical care, and take care of other financial needs that arise while the case is being resolved.
Contact The Legal Funding Group
Our top priority at The Legal Funding Group is to help plaintiffs meet their financial needs while waiting for their lawsuits to settle or for a verdict. We work diligently to advance cash to the plaintiff as quickly as possible. The following are the benefits an applicant should expect:
- A “no-win, then no-pay” cash advance through a highly reputable legal funding company
- Personalized customer service from a dedicated specialist who will lead you throughout the 3-step process
- Transparency and openness that keeps the applicant informed through all stages
- Quick cash transfer when approved, as soon as 48 hours or less after approval
- Fast and easy application with our paperless process that takes mere minutes to complete
Fill out an application today or give us a call at (912)-777-3997 for more information.