“Lawsuit loans” and “legal funding” often refer to similar forms of financial products. Tribeca understands that lawsuits are stressful and overwhelming, and terms and conditions are the last things you want to worry about. Check out this easy overview of the key differences between lawsuit loans and legal funding. It’ll help you understand which one to choose.
Facing a lawsuit could leave you suffering from financial harm as well as damage to your health. Getting legal funding from a lawsuit loan company like Tribeca is a great way to cover your living expenses while you wait for the settlement or jury award you are owed.
The Benefits of Legal Funding
Looking for a legal financier can seem complicated. Words like legal funding, cash advance, pre-settlement funding, and legal loans are often used interchangeably. However, you should make sure the type of funding you choose suits your needs and not just those of the lender before you commit to any of these arrangements.
No Credit Checks with Legal Funding
Unlike typical loans, legal funding does not require a credit check. Instead, pre-settlement funding depends on the facts of your lawsuit. At Tribeca, up to $1 million can be in your bank account 24 hours after approval of your application, so long as you have a case type that we fund.
No Bank Account Reviews with Legal Funding
Many loans require rigid background checks of your financial life to make sure you will be able to pay them back. This is not the case with legal funding, as your personal finances do not make an impact on the application process. Our lawsuit loans are non-recourse, so you do not pay us back out of your personal bank account.
If You Lose Your Case, You Don’t Have To Repay Legal Funding
In a pre-settlement funding arrangement, all the risk is taken on by the lender (in this case, Tribeca). We provide a cash advance with the understanding that we’ll be repaid out of your eventual settlement or jury award. If you lose your case and wind up without compensation, you don’t pay us back at all!
Legal Funding Is Not a Loan
Lawsuit loans are not loans in the same sense as other types of lending. Instead, they’re more akin to a legal cash advance tied directly to your eventual compensation. You don’t have to worry about stressors like:
- Monthly payment plans
- Impacts on your personal finances
- Effects on your loan worthiness
Instead, your attorney simply writes us a check for the agreed upon amount when they receive the settlement package from the opposing party.
How Lawsuit Loans Can Be Used
Unlike other forms of lending, such as medical funding, a lawsuit cash advance does not come with restrictions. It’s money that goes directly into your bank account, and you can use it however you need. Common ways to spend pre-settlement funding include:
- Medical debt
- Rent or mortgage payments
- Food, clothing, transportation, etc.
- Property replacement or repair associated with your lawsuit
- Replacement for lost income
Regardless of what kinds of bills are piling up, you can use legal funding to help ease your financial stress and fight for the compensation you are owed.
Legal Funding In Your State
Our underwriting team is licensed and cleared to provide funding in many states across the U.S. Some state laws are stricter than others, while some states have very little regulation related to lawsuit funding arrangements. Tribeca always operates according to the highest ethical standards of the industry, regardless of which state we do business in.
You can find out more about the areas we serve on our States page.
Apply for Pre-Settlement Funding for FREE
Fill out the Apply Now form on Tribeca’s homepage. We have a team of experts who can answer all your lawsuit loan questions. Applying is totally FREE.
With a client acceptance rate of over 94%, Tribeca loves to say “yes” to our applicants. Get your money in as little as 24 hours after approval and live comfortably while you wait for your lawsuit to resolve.