Legal Funding and Cash Advances 101
There are many different ways to access cash if you need it, especially if you have a pending lawsuit.
Less than a minute to apply – get the cash you need in hours if approved.
What You Should Know About Legal Funding and Cash Advances
Lawsuit loans, pre-settlement funding, legal funding, and cash advances… the list goes on. When weighing your options, it’s important to note the distinction between the various types of funding routes. Picking the right one could mean saving you thousands of dollars in interest down the road, keeping your credit score intact, and keeping you on the right track financially. For example, you only pay back a legal settlement funding if you win your case.
When it comes to getting money quickly, cash advances can be an option. In fact, many credit cards offer the option to pull out cash against their line of credit and deposit those funds into a bank account. Then, there are also payday loans. These help cover cash needs until the borrower’s next paycheck arrives. While these options can help you get cash in your pocket quickly for things like basic living necessities, there are things about them that require caution.
How are legal funding and cash advances similar and different? Find out more.
The Similarities
Both legal funding and cash advances are appealing because they help to put real cash in your pocket quickly. If you are in a cash crunch, these two options may look pretty similar. Furthermore, legal funding and cash advances typically will not affect your credit score . And, in many cases, you may not need a credit check in order to qualify for legal funding or cash advances. Finally, in many instances, legal funding and cash advances are designed to be short-term solutions to help you bridge the gap financially between tough times. For example, lawsuit funding is designed to help you pay for basic needs and/or medical bills while you wait for a settlement check to come in. Similarly, payday loans help to bridge the gap between needing funds and the next payday.
While you can see that there are definitely similarities between these two types of funding, the differences are important and should be noted.
The Differences
There is a very, very important difference between legal funding and cash advances that you should be aware of if you are considering your options. While both options offer quick solutions, legal funding like pre-settlement legal funding from Fast Cash Legal does not have to be repaid if you lose your case. Yes… that is correct! If you work with a pre-settlement legal funding company like Fast Cash Legal that offers legal funding, you ONLY pay back the lender if you win your case. This means you can rest assured that you will have the ability to pay back what you borrowed. Legal funding companies don’t want you to get in over your head, which is why they have created this standard.
Cash advances, on the other hand, must always be paid back, no matter your personal financial situation. So, you can imagine that it’s much more likely to get in over your head with cash advances. Falling credit scores, sky-high interest rates, etc. are all very real possibilities if you choose the cash advance route when lawsuit funding could have been an option.
Another important distinction to note is that sometimes you will hear legal funding referred to as legal funding cash advances. These types of fundings fall into the same bucket as other legal fundings and are not like credit card or payday advances. Rather, legal funding cash advances also do not have to be repaid if you lose your case.
An Example
Here’s a typical scenario. Say you got in a car accident and now can’t make ends meet due to your increased medical bills and the inability to work. You have a pending settlement coming from a lawsuit you filed, but you need cash NOW. You are looking at lawsuit funding and cash advances. Both can get you funding in 24 hours, and both seem to have similar interest rates. So, does it matter which company you choose?
Let’s say you went with a cash advance, and now it’s come time for the settlement offer in your lawsuit. You find out that you did not win your settlement, and are left now with a debt to the cash advance company. Now, you are responsible for paying it back, despite the fact that you do not have the ability to do so. In fact, you were counting on funds from your settlement as repayment.
In a situation like this, you could have avoided this headache by choosing a pre-settlement lawsuit funding company. Keep in mind that it may be more difficult to get pre-settlement funding since you need to have a strong case. And, you should always check to confirm that you only pay back a pre-settlement lawsuit funding if you win your case, like with Fast Cash Legal. If so, the decision should be a no-brainer.
Next Steps
To learn more about if pre-settlement funding is an option for you, and how it can help you more than a cash advance, contact us at Fast Cash Legal today.
And remember that you need not worry about how you’re going to pay us back if you end up losing your case… if that happens you will not have to pay us back. Not a single cent.
Call us today to apply at (844) 213-1116, or simply start by completing the short application!
How Do I Qualify?
While there are many things that we look at regarding your personal injury lawsuit to see if you qualify for a legal funding, there are 3 main questions we ask about your case:
- How serious were the injuries you suffered?
- Does the person who caused the accident have a way to pay for any legal settlement award?
(the real key is do they have insurance to pay for it) - Is the person who you’re claiming caused the accident actually responsible for the accident?
(kind of an odd question, we understand, but you’d be surprised)
If your case can meet these qualifications, then there is a great chance we can fund you.
Fast Cash Legal does not provide pre-settlement legal funding in the following States: Alabama, Arkansas, Colorado, District of Columbia, Illinois, Indiana, Kansas, Maine, Maryland, Missouri, Nebraska, Nevada, North Carolina, Oklahoma, South Carolina, Tennessee, Vermont, Virginia, West Virginia.
Fast Cash Legal does NOT fund Workers Compensation cases.
Start Your Free Application Now
- No credit checks
- If approved, you can get your cash in 24 hours
- If you lose your case, you owe nothing
- There is no obligation if you apply then decide not to take the funding
