How Long Does it Take to Get a Lawsuit Loan?

Lawsuit Loans and Lawsuit Lending Companies

A lawsuit loan or settlement loan is not a traditional loan, but rather a cash advance. Pre-settlement funding is a more accurate descriptor.

This form of financing occurs when the plaintiff in a personal injury claim or other lawsuit is advanced money in exchange for a portion of the expected settlement.

Because a lawsuit loan is a non-recourse financial product, it requires no credit check, income proof, or employment verification. As such, the process is much quicker than applying for a car loan or a home mortgage.

The two parties in any lawsuit loan transaction are the plaintiff in the case and a litigation funding company.

As the plaintiff, you must have a legitimate claim and legal representation. Most people hire counsel on a contingency fee basis.

The lawsuit lending company is a financial enterprise specializing in this form of financing. They are highly skilled at evaluating pending claims and lawsuits so they can effectively deploy their capital, recouping investments and turning a profit while supplying those in financial need with funds as soon as the same day.

If you win your case, you repay the advance plus interest and additional charges. If you lose your case, you repay nothing.

So, how long does it take to get a lawsuit loan?

That depends on many variables, which we’ll break down for you today. The better you understand the process, the less frustrated you should feel.

What Factors Influence the Timeline of Obtaining a Lawsuit Loan?

The underlying process of obtaining a lawsuit loan is straightforward, provided your application is pre-qualified. This means your case satisfies the basic requirements of a civil lawsuit and you have retained a lawyer on a contingency fee basis.

If these conditions are met, the process unfolds as follows:

• Your data is entered into the system.
• A request for documentation is sent to your attorney.
• The requested documents are received and reviewed by the funding company.
• The merits of the case are discussed over a brief conference call with your legal counsel.
• If the application is approved, a contract is drafted and sent to the loan applicant.
• The client and attorney sign the document and return it.
• The case can then be funded.

Any delays in the above process are usually due to the availability of your attorney.

Lawsuit funding companies evaluate cases like yours all day, every day. Your attorney, on the other hand, is busy practicing law and may not always be available to promptly return documents or conduct phone conferences.

Beyond this, not all cases qualify for legal funding in the first place.

Some Cases Do Not Qualify for Lawsuit Loans

Most lawsuit funding companies fund the following cases:

• Personal injury cases (auto accidents, slip-and-fall accidents, premises liability)
• Product liability cases for defective products
• Legal or medical malpractice where professional negligence caused damages
• Medical device cases
• Employment law cases
• Commercial litigation cases

Lawsuit loan companies do not typically advance funds on any of the following:

• Social Security disability claims
• Wage disputes
• Landlord-tenant actions
• Collections cases

Other Variables Impacting How Long It Takes to Obtain Pre-Settlement Funding

Other variables, such as the availability of certain documents, can also influence the overall timeline for obtaining a lawsuit loan. If there are complications with police reports, medical records, or insurance information in an auto accident case, this can delay the process. Other types of cases call for different documentation.

Fortunately for consumers, legal funding companies strive for maximum efficiency.

When a lawsuit loan application drags on, it is often due to delays in obtaining documentation or scheduling conference calls between busy parties.

Occasionally, delays occur with the execution of funding documents. This process should be seamless, but that is not always the case.

What Is the Average Timescale for a Lawsuit Loan?

While there is no fixed timescale for a lawsuit loan, most take anywhere from a few hours to a few days from application to receiving funds.

Receiving legal funding as soon as the same day is commonplace, although this hinges on good communication and rapid responses from your legal counsel.

Most lawsuit loans can take as little as a few hours to process once documents are sent to the funding company from your law office.

Once you’re approved, there are several fast ways to receive your funds, ranging from Western Union to wire transfers.

Waiting for your law office to collect and send the requested information is usually the most time-consuming component of the application process.

Luckily, once you get the process underway, you are often just a day or two away from receiving the funding you need, which can be used for any purpose and is completely risk-free.

[LEARN MORE]:

• How Long Does It Take To Get Money After A Settlement?
• How Long Can a Lawyer Hold Your Settlement Check?