Getting a same-day accident loan can be challenging if your lawsuit hasn’t been filed. Lawsuit loans are cash advances for plaintiffs who expect compensation from a future legal settlement or judgment (from which the borrowed cash will be paid back). However, if you’ve retained an attorney, you may be eligible to receive legal funding.
How Soon Can I Get a Same-Day Accident Loan?
You can borrow money after an accident and if you’ve hired a lawyer. It’s not a hard rule that your lawsuit must be filed first. But your attorney must have some idea of the value of your case. Unfortunately, you can’t get a lawsuit loan if you don’t have an attorney. This is because a lawsuit loan company will require:
- Information on how the accident occurred
- A copy of the police report
- Copies of medical receipts and hospital records
- Information about your insurance company
- The insurer’s letter acknowledging your claim
- A repayment guarantee from your lawyer
Your lawyer must provide all these details. It does not violate the attorney-client privilege if you approve this exchange of information. Speak to your lawyer ahead of time if you plan to apply for a cash advance. It gives them time to gather the necessary documents, and they may work with lawsuit loan companies that are likely to approve your request. Therefore, you can more quickly get a cash advance before your lawsuit is filed.
What Makes It Harder to Get a Lawsuit Loan?
Not having retained an attorney is the number one barrier to receiving a same-day accident loan. But a lawsuit funding company can deny your application for a few reasons. You may not be approved because:
- It’s Too Soon: The case may not be fully prepared and all the documents needed for the lending company to make an offer aren’t available. If your personal injury lawyer hasn’t obtained the police report or your medical records yet, the lender won’t provide a lawsuit loan.
- Your Case Is Unlikely to Win: A lawsuit loan is a non-recourse cash advance, meaning it’s taken from your future settlement and isn’t paid back if you lose. The lender takes on significant risk with any case. But if you don’t have a strong case or it doesn’t meet the lender’s criteria, your chances of denial are higher.
- You’ve Borrowed Too Much Already: If you haven’t borrowed money yet on your accident case, you’re more likely to be approved. But if you have a previous cash advance, the lender may say you owe too much. You can’t hide the fact you already obtained money. The information can be obtained from a clearing association or your credit report.
Should I Apply for a Same-Day Accident Loan Early?
That depends on your needs. Personal injury clients are often out of work and financially strained. Medical/surgery bills, utilities, rent, and car payments can’t wait to be paid. Fortunately, lawsuit funding companies work quickly, so they can approve you a day or two after speaking to your attorney.
It also helps to know how much you can borrow. A lender usually only offers a percentage of the total expected settlement amount (such as 10% or 15%). Otherwise, with interest, the loan can take up most of your settlement and you’ll receive few, if any, funds later. There’s also a chance your case can settle for a lesser amount than expected. You won’t be required to pay back more than you receive, but it’d be a loss for the funding company.
However, you can always request an additional cash advance later, whether your case is taking longer than expected, the anticipated settlement amount increases, your injuries and recovery turn out worse than expected, or you need the money.
How Do I Get an Accident Loan on the Same Day?
To receive a same-day accident loan, you must submit your application before a time specified by the lender. You’ll need to provide details on your accident, and your attorney must be available to speak with the lender’s representative. Then an underwriter will analyze the case details to determine an offer. Once you accept the offer and your lawyer signs the funding contract, you can receive your cash advance.
Contact Fund Capital America
If you need a same-day accident loan, we can offer a personal injury, product liability, or auto accident cash advance within 24 hours of receiving your application. This reduces the pressure to settle early or accept a lower insurance payout. We provide non-recourse cash advances with no hidden fees and no out-of-pocket costs. Apply now online or call 855-870-2274 for more information.