If you have filed a lawsuit seeking compensation for an accident, medical malpractice, or other personal injury, you may be waiting a long time before your case finally settles. Lawsuits are notoriously slow moving, and it could take months or even years before you see any money awarded to you. In the meantime, you may be struggling financially from mounting medical bills, inability to work, and other costs related to the incident that was the basis for your legal claim.
This is where a settlement loan can help. A settlement loan provides upfront cash based on the expected proceeds from your existing lawsuit. It allows you access to money well before the case settles and is finally resolved. But how quick is “quick” when it comes to these types of lawsuit cash advances? Let’s take a look at what impacts the timing and what steps are involved when getting a pre settlement loan.
What Impacts the Timing of Receiving Settlement Loan Funds
The time it takes to receive your settlement loan funds depends on several key factors:
Your Cooperation with the Lender’s Information Requests The lender will ask for various documents and details in order to verify and assess your case. It’s important that you provide these materials in a prompt manner in order to keep things moving smoothly and quickly through the settlement loan process. Foot dragging in responding to requests will only delay receipt of your much-needed funds.
Complexity of Your Case
More complicated legal cases often require extra review time from the lender. Things like the number of defendants, determining all sources of case proceeds, and understanding tricky legal arguments can lengthen the approval decision process. Simpler, more straightforward cases typically require less review.
Steps Involved in Getting a Cash Advance Against a Pending Lawsuit Settlement
Now let’s walk through the basic steps typically involved when getting a lawsuit settlement loan:
Step 1: Initial Application
First, you fill out an application with basic information about your case and the lawsuit funding you are requesting. This requires you to provide details like the date and nature of the incident, names of involved parties, current status of the case, and the amount you hope to receive from your eventual lawsuit settlement. Filling out the settlement loan application with complete and accurate information can generally be completed in 1 to 3 days.
Step 2: Verification of Case Details
Next, the lending company will verify all the important information about your lawsuit and settlement amount potential. The lender will often contact your attorney to confirm the case details you provided. They want to substantiate that the case is indeed active and legitimate, and that your stated settlement expectations are reasonable. This verification process usually takes around 3 to 5 normal business days.
Step 3: Loan Approval Decision
After thoroughly vetting your pending legal claim, the settlement loan company will decide whether to approve or deny your application for a cash advance. This decision is typically made within 1 business day after finishing the verification stage. If approved, they determine the maximum loan amount you qualify for based on factors like the value and risks of your case.
Step 4: Signing of Loan Documents
Once approved, you next formally accept the settlement loan offer by signing legal loan documents, promissory notes, and disclaimers of liability. For your convenience, e-signatures are often permitted. As long as the lender promptly receives your signed paperwork, this step can usually happen on the same day your loan is approved.
Step 5: Funding Disbursed to You
Finally, after the loan closing paperwork is finished, the lender issues your cash disbursement. This is done via check, wire transfer, ACH direct deposit, or prepaid card. You could have your settlement advance money in hand in as little as 24 hours after the lender receives your signed loan documents.
What’s the Total Time Frame for Receiving Settlement Loan Funds?
If all goes smoothly with quickly supplying needed information, most settlement loan approvals and funding can be completed in just 7 to 10 business days. Some lenders even advertise 1 to 3 day finance options in a bid to win your business.
However, delays in any of the steps, like if your personal injury attorney lags in responding to verification requests, can result in longer waits of up to 3 or 4 weeks before getting your prep settlement cash advance. Processing times also tend to take longer for more complex cases like class action lawsuits or those with multiple defendants.
That covers the key timing considerations around lawsuit loans and cash advances for pending litigation settlements. Let’s recap the most important takeaways:
- Your responsiveness to lender document requests impacts speed
- Complicated cases often have lengthier review periods
- From application to funding, expect 1 to 4 weeks if all runs smoothly
- Various delays can extend total timing in some instances
The settlement loan process involves this general sequence of events:
- Initial application
- Verification of lawsuit details
- Loan approval decision
- Signing of legal financing agreements
- Cash disbursement issued to plaintiff
If you have further questions around lawsuit loan timing or getting financing based on a pending legal claim, don’t hesitate to contact an expert lender for clear answers catered to your specific case. Taking advantage of a pre settlement cash advance can provide real financial relief as you await final resolution of your important case.
