According to the Bureau of Labor Statistics, employers reported 2.1 million injury cases in 2020.1 Workers’ compensation is available to any employee who gets injured on the job. But many times, applicants don’t get the payments they’re entitled to. That’s because employers often deny responsibility for an injury or claim it didn’t occur on the job. Claimants often have to file a lawsuit, which can drag out for months or years before settling. However, loans against workers comp settlements can get you the money you’re entitled to much faster.
What Is a Settlement Loan and How Does It Work?
A settlement loan is a bit different than a traditional loan. It’s essentially a cash advance on the proceeds of your future settlement or the benefits you’ll eventually receive. Often referred to as settlement or pre-settlement funding, it can apply to workers’ comp and many other types of lawsuits. The loan is non-recourse, meaning it’s paid back only if your case is successful. There’s no financial risk to you if the case loses.
If you’ve filed a workers’ comp claim, you can apply for a settlement loan with a lending company. The amount offered depends on the value of your case, the benefits owed, and the scope and nature of your injuries. Once you receive a settlement or benefits, the loan amount plus interest will be deducted from your payment. But in the interim, you’ll have the cash to cover medical bills, emergency expenses, rent, mortgage payments, groceries, and family obligations.
How a Workers’ Comp Claim Differs from a Personal Injury Claim
Plaintiffs injured due to someone else’s actions or negligence often file a personal injury claim. This enables them to sue for the full amount of their losses. California state law does not put a cap on compensation. You can even seek monetary damages for emotional distress. In some cases, punitive damages may apply if an employer engaged in misconduct that contributed to an injury.
Personal injury claims are often filled by independent contractors. However, if you’re a full-time employee at a company with workers’ comp insurance (most employers are required by law to have it), you can file a claim with the state’s workers’ compensation system. If approved, you’ll be covered for lost wages, medical treatment, and possibly other damages.
How to Apply for Loans Against Workers’ Comp Settlements
Since most workers’ compensation claims lead to lengthy litigation, you need a more immediate financial solution. Resorting to bank loans and credit cards will cost you more in the long run. And, despite the hardships workers’ comp applicants often encounter, applying for a settlement loan is easy. You’ll need to:
- Retain a Workers’ Comp Attorney: A skilled attorney knows how to navigate the legal process, so the odds of your claim being successful are much higher. It’s never advised to seek workers’ compensation alone. Hiring an attorney also opens the door to eligibility for settlement funding, as the lender must confer with your lawyer about the facts of your case.
- Find a Reputable Lender: Do your research on lending companies and ask your lawyer for recommendations. When evaluating companies, compare their payment terms, interest rates, fees, and fine print. Once you find a lender, fill out an online application form, which takes just minutes (they’ll need your name, basic details on your case, and your lawyer’s name and phone number).
- Accept the Agreement: Read the entire contract and make sure you understand the terms before signing it. Have your attorney review the agreement as well. Once approved, you may have funds available in your bank account within 24 hours. And regardless of what the lender offers, you can choose to take less based on what will cover your expenses.
Apply for a Workers’ Comp Settlement Loan with Fund Capital America
At Fund Capital America, we provide cash advances to victims of construction accidents and others who seek loans against workers’ comp settlements. Our options include pre-settlement funding, post-settlement funding, a cash advance refinancing program, and a settlement acceleration program. Apply online today and request payouts in a lump sum, as monthly installments, or multiple advances throughout your case. Call 855-870-2274 to learn more.
