Busting Lawsuit Funding Myths
Legal funding in California, also known as lawsuit advances, offer a cash advance opportunity for plaintiffs that need income while waiting for their lawsuits to pay out. While this can be a valuable financial tool to the right individual, many myths about these financing options have circulated that cause those who could benefit to ignore this opportunity. Here are some common myths about legal funding and the truths behind them.
Myth 1 – Legal Funding is a Loan
Legal funding is an advance. It requires no monthly payments or upfront fees like a loan would. The repayment of the advance occurs when the lawsuit is won as a percent of the lawsuit settlement. This myth is common because the advance looks and sounds like a loan, but it is set up so that you do not end up owing anything if you do not win the lawsuit. With a loan, you would have to repay the amount whether or not you win.
Myth 2 – You Need Great Credit to Get Legal Funding
This is not true at all. In fact, legal funding advances are some of the easiest to quality for, as they require no credit checks or employment verification. Why? Because the funding is based entirely on the likelihood of winning the lawsuit. A strong case is the only prerequisite to get this type of funding.
Myth 3 – Lawsuit Funding will Increase Your Bills
Lawsuit funding is only repaid when you win your lawsuit. There is never a monthly bill or any other regular expense with this type of cash advance. You only pay the money back when you win the case, so it will not add to your current financial obligations. Instead, it will provide relief as you work through the lawsuit and seek to get the compensation you deserve.
Myth 4 – A Bank Loan is Always a Better Option
Lawsuit funding is not the right funding option for everyone, but it does have advantages over bank loans. First, it has few requirements for approval. Second, it does not create a new monthly bill. Finally it does not require any collateral for the funding. Each of these advantages mean that a lawsuit funding is a great option for many people, especially those who have been injured in an accident and are facing mounting medical bills without employment income, yet have a long time to wait for their settlement.
Myth 5 – Taking on Lawsuit Funding Advances will Make a Fair Settlement Difficult
This myth stems from the belief that the company providing the advance will pressure the individual to settle early to get their money back. This is not the case. The companies that provide funding are not allowed to get involved in the cases they fund. They also have an interest in allowing the case to proceed naturally to ensure the largest possible settlement, which means the largest possible payoff when they are repaid.
If you are in the midst of a lawsuit and are facing financial challenges, legal funding in California can provide you the option you need. Research your choices and the costs, choose a credible company like FCA Legal Funding and take advantage of this funding option as you seek the compensation you deserve.