Your best fit
What is the difference between lawsuit funding vs. lawsuit loans? The two may sound similar, but there are important differences between the two. If you qualify for settlement funding, here’s what you should know about lawsuit funding vs. lawsuit loans.
In terms of repayment, lawsuit loans are expected to be paid back, with interest. Like all other “loans”, lawsuit loans are given with the expectation that cash will be returned. With lawsuit funding, the money is only paid back if you win your case in court. If the court decides not to award a settlement, then the company that provided the funds loses their money. You are only responsible for paying back the lawsuit funding if you win your case.
While it seems like the lender for lawsuit funding is taking a big risk, they will only take cases that they are confident will win. It is pretty unlikely to get lawsuit funding for a lawsuit and then lose your case. This is why it may be difficult to qualify for lawsuit funding unless you have a very strong case.
Another difference between lawsuit funding vs. lawsuit loans is undergoing a credit check. Lawsuit funding may not require a credit check because the decision to fund is based on the likelihood of a case winning in court, rather than an individual’s personal financial history. On the other hand, lawsuit loans require a credit check because the lender needs to be confident that they will be returned their borrowed money.
Both lawsuit funding and lawsuit loans require the borrower to pay interest on the funds. The interest amount depends on the lender. For more information of specific lawsuit funding interest rates, contact Mayfield Settlement Funding.
In terms of funding use, lawsuit funding and lawsuit loans are similar. The funder wants the borrower to spend money on things related to cost of living and their court case. This can include housing expenses, medical expenses, attorney fees, childcare, and other things related to daily cost of living or associated with the accident. The purpose of both lawsuit funding and lawsuit loans is to help the injured party to get back on their feet financially after an accident.
To find out which is the best type of funding for your situation, Mayfield Settlement Funding is standing by and ready to answer your questions. Contact us today to learn more.