I know it might not make sense to get pre settlement loans if you know you have a large amount of money coming to you from a court settlement. You have to think of things differently though, getting a settlement can take a long time.
These types of things can get tied up in the legal system for months and sometimes even years. Assuming that your settlement is because of a personal injury, can you really afford to be without money for this long? Will workers compensation or supplemental insurance take care of you properly?
The length of time it takes
Pre settlement loans are an asset to people who just cannot afford to wait on the legal system. Judgments and settlements can take up to a year. In most cases the insurance company might be holding things up; because they are trying to get out of paying the sum they might have to. You do not want to be without the money you so desperately need for this long do you?
Workers compensation is not enough
I do not know what type of lifestyle you lead or if you are what your financial situation might be but there is a good chance that the money you get through workers compensation will not be enough to cover your expenses. You may have to end up tapping other wells in order to get by and this might put you in a financial hole. Getting pre settlement loans can serve as a good back up, and will ensure you are able to comfortably maintain your current lifestyle.
Waiting times for settlements can be extended
If you thought that waiting up to a few years to get the money you have coming to you in a settlement wasn’t enough, things can be made even worse for you if the insurance company decided to appeal the judgment. This can and does happen. You might be rewarded a large sum that the insurance company does not want to pay out. They will drag the process on as long as the can. So if you do not get pre settlement loans, you may end up waiting even longer than you ever thought.
It is not my goal to sell you on the value of pre settlement loans, but to make you understand how they can serve as an excellent lifeline in your time of need.
Getting a Structured Settlement Loan
Do you have a lawsuit pending that is taking much longer then you would have liked to get worked out? Do you need cash now? Well if you do then getting a structured settlement loan would give you the money you need to stay on your feet now, while at the same time alleviating you from having to wait so long for a settlement to come through. You can get a structured settlement loan if you meet one of the following requirements.
A settlement is virtually certain
Understand that banks are in the business of risk management, and they want to know they are going to get their money back. So in order for you to get a structured settlement loan it has to be a virtual certainty that you are going to win the lawsuit or you have to have already won it. You just might not have access to the capital yet. In this case getting a structured settlement loan should not be a problem.
Showing evidence to the banks
Simply having a good feeling you are going to get a huge court reward is not enough for the banks. They might need to see something on paper that indicates a strong possibility. Maybe they might have to speak to your lawyer about how much money you can expect.
In either case you might be required to show evidence, and if you are able to provide it then you should not have a problem getting the money you need in advance.
Asking for a small amount
Seeing as how banks are in the risk management business, it would help your cause if the amount of money you are trying to get for a structured settlement loan was only a tiny fraction of what your court award might be. This makes banks feel good in two ways, they are safe in case your award is not as big as you anticipated, and two, you can easily make payments since the loan is not for very much.
Posing a good risk
If you have already won the money and it is simply pending, then there is not a bank that would turn you down for a structured settlement loan. You represent a good risk for them and you should have banks beating down your door to provide you the money you need.
Under all these circumstances you should be able to get what you need, just make sure you stay in contact with your attorney so you are clear on what you might have coming to you financially. A structured settlement loan is a great way to get the money you need now while you wait for your structured settlement to be finalized.