With respect to settlement loans, there are certain facts that every plaintiff should know before deciding whether to apply for a settlement loan and with which provider to contact. Proper research and education on a settlement loan will help the applicant make the right decision, as with any type of loan product. This article is designed to allow victims of personal injury accidents to understand all the facts related to settlement loans through settlement loan companies.
A lawsuit loan is not like a traditional loan
Unlike the common term used (settlement loan, demand loan, etc.), in fact they are not considered loans at all; regarding the legal terms. In fact, these are loans without recourse or debts without recourse. Debt without recourse is a loan guaranteed by collateral. With a settlement loan, the guarantee is actually your future settlement. Does not make monthly payments on a settlement loan; instead, your lawyer will pay the loan amount, plus interest and fees in full if you win your claim and when you receive your settlement check. Usually, the agreement between the provider and the plaintifflawyer is to send them the money directly; to prevent the applicant from touching what he or she owes.
The loan is repaid “only” if you win
One of the main advantages of this type of loan is the payment agreement. If the plaintiff does not win his claim, he is not obligated to pay the loan. If you do not win your case, you do not have to return anything. However, if you win your claim, you must pay the settlement loan in full, plus all interest and costs. This makes settlement loans a risk-free loan during an ongoing lawsuit.
Bad credit does not affect the approval process
If you have bad credit, you don’t have to worry; your credit history, work and income are not decisive factors in the approval process. The decision to grant a loan to the applicant is based on the case of the applicant. If you have a solid and solid record, you will still be approved for a demand loan. However, frivolous claims almost never raise funds, which protects settlement loan providers because they are not reimbursed if the claimant loses their case. Do not allow bad credit to prevent you from applying; this does not affect your chances of approval.
No spending restrictions
You can spend your funds on whatever you want. You can use it to pay medical expenses, make mortgage payments, buy a new house, pay bills or even invest in a new business. Once approved, you have no limit on what you can spend for your money. Unlike traditional loans, you don’t need to give details of what you plan to use the money for. You are free to spend it however you want.
If you want to know more about demand loans, you should visit Baker Street Funding. They offer massive information that contains everything you will need to know about demand loans, including the demand loan process from start to finish.