Lawsuit funding and lawsuit loans may sound the same, and they may even be very similar, but there are actually a few very significant differences between them. Choosing the right one for your needs can make a huge difference when your finances are concerned, so it’s vital to know what each of them really entails.
How Are Lawsuit Funding and Lawsuit Loans Similar?
Both lawsuit loans and lawsuit funding have the same purpose, which is to help you get back on your feet until your case is resolved. Your funder or lender gives you a particular amount of money to help you cover your daily expenses, as well as all your legal fees. This means that you can easily pay for your attorney’s services, your housing, childcare, potential medical bills, and cover any other living costs you have.
These settlement financing options are also similar in terms of interest rates in that both your funder and your lender require you to pay interest on the funds you receive.
How Do Lawsuit Funding and Lawsuit Loans Differ?
There are two differences between lawsuit funding and lawsuit loans. The first has to do with repayment, and the other with qualification.
When it comes to lawsuit funding, you need to pay back the money only if you win your case. This may seem like there’s a catch, but there isn’t actually. Companies that provide lawsuit funding don’t ever take cases that are not likely to win in court. They only fund strong cases, so that they don’t actually lose money.
Therefore, if you have a very strong case, you can easily get lawsuit funding, without worrying about your finances taking a huge toll because you’ll repay it only if you win.
On the other hand, you’re obligated to repay your lawsuit loan, even if you lose your case.
When it comes to qualifying for lawsuit funding and lawsuit loans, the former doesn’t include a credit check, while the latter is never given without one.
There’s no need for a credit check with lawsuit funding because you obtain the funds only if you have a very strong case. Your lender simply doesn’t care about your credit score. They only care about your case winning in court.
In contrast, the lender of your lawsuit loan must check your credit score to estimate whether or not you will be able to repay the loan. They need to be absolutely sure that you will return the money you borrowed from them.
Whether you need lawsuit funding or a lawsuit loan, we’re here for you. Direct Legal Funding is your number one partner for the best lawsuit settlement financing options available, and you can be sure that we can perfectly meet your every need.
Our mission is to help people get back on their feet financially and to help them completely eliminate the financial stress that comes with taking a case to court.
We’re happy to answer any of your questions, so don’t hesitate to contact us.