Settlement Funding Companies Offer Both Pre and Post Settlement Funding

If you are in the middle of a settlement or have just received your settlement and still need funding, you should consider settlement funding companies. It is important to understand the differences between pre and post settlement funding.

The main difference between the two types of funding is that pre-settlement funding is given before the settlement has been won, while post-settlement funding is given after the settlement has been given to the client.

Both types of funding are given for almost all kinds of accidents where injury has occurred, such as a car accident. It is important to know that there are other differences between post and pre settlement funding.

It is generally easier for settlement funding companies to process post settlements because there has been a clear verdict in the case. There are no unknowns, which isn’t true of pre-settlement funding. When you receive funding before the settlement has been won and granted, there is more risk on the settlement funding companies because there is no guarantee the client will win his or her case.

Another difference between the types of funding available is that there are different fees associated with each one. Pre-settlement funding involves risk to the company providing the funding, which usually means they charge higher fees for interest. Interest is usually paid back once the client receives the money, even if they haven’t won their case yet, so the company is getting at least some of their money back. With post-settlement funding, the client has already won and there is a well-defined amount available to the client, so the fees are less. Again with pre-settlement funding, the client isn’t required to pay back the loan if they lose their case, which results in higher fees to begin with.

Post-settlement funding is legal in all 50 states, whereas pre-settlement funding is not legal in some states. Many funding companies prefer to do post-settlement funding because it doesn’t matter where the client resides and it is more efficient and cost-effective to both clients and lawyers.

Even though there are many differences, both of these funding types can provide you with help on your financial burdens. Make sure you do plenty of research on these companies before you make a decision, whether you need post or pre settlement funding.

Settlement Funding Companies can offer various solutions when needing assistance during your settlement. Contact Resolution Funding today to get professional assistance.

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