How Auto Accident Lawsuit Funding Is Better Than Accident Loans

Disclaimer: Consumer legal fundings and advances are not loans under applicable financing laws. Rockpoint’s products are non-recourse, meaning if you don’t win your case, you don’t have to pay us back. Receiving financial support in connection with a legal case is typically (and oftentimes incorrectly) referred to as a “lawsuit loan” or “loan.” Therefore, for the ease of search references, these terms may be used in this context to refer to our funding products, but we maintain our separateness from consumer loan products in all legal aspects. 

After your car accident, you’re holding out hope for a generous settlement. Your attorney says you have a good chance of winning your case. However, the defendant’s insurance company is fighting you, and it may be months before your case is over. You’re tempted to take out an accident loan to tide you over until then.

Instead of an accident loan, consider non-recourse auto accident funding. In this guide, you’ll discover why loans aren’t a smart choice and why pre-settlement funding is a better option for many accident victims.

Accident Loans Can Create More Problems Than They Solve

Your car accident case has dragged on for months, and there’s still no settlement in sight. You can’t work because of the crash, your bank account is running low, and rent is due next week.

In desperation, you turn to an accident loan company. It offers you immediate cash, so you jump on the deal. You think your money problems are finally over.

But a month later, the loan company requests a payment, plus interest. Paying is out of the question because you’re still out of work. If you put up collateral for the loan, the lender eventually takes it, and now you’re worse off than before.

Or maybe you take out yet another loan to pay off the first one. This is a slippery slope that rarely ends well, especially if you go with a payday loan, notorious for extremely high interest rates.

Perhaps you don’t qualify for a loan at all. Loans require a good credit score and a source of income for repayment. If you have neither, you’ll find few lenders willing to approve you.

There’s a better, less stressful solution: auto accident funding.

Why Pre-Settlement Funding Is the Better Choice

You may see auto accident funding referred to as a “settlement loan“ or  “non-recourse loan,” but it’s a cash advance, not a loan. Instead of having to make monthly payments, you pay back the lump sum you borrowed from your settlement once your case is over. That means no stressing over repayment while your case is ongoing.

Accident funding also doesn’t have an interest rate like a loan would. Instead, you pay a flat fee. You won’t be hit with unexpected costs when it’s time to repay. And if you don’t win your case, you don’t owe the funding company anything.

Auto accident funding is also much easier to qualify for than a loan. You don’t need an income, and it doesn’t matter if your credit score is poor. You can qualify if you’re out of work, lack a credit history, or are in the middle of bankruptcy proceedings.

You only need to meet these requirements to qualify:

• Be 18 years or older
• Live in a state served by an accident funding company
• Have a pending lawsuit and an attorney
• Have a valid case type, such as a car accident, premises liability, or medical malpractice case

How Can You Use Your Settlement Advance?

One of the greatest things about auto accident funding is that you’re free to use it on anything you need or want. Here are some examples of how borrowers use their funding:

• Paying for rent and bills: Utility and rent payments can’t stop just because you’re out of work. You need a roof over your head, electricity, and running water. With a settlement advance, you can take care of the bills and focus on recovering after your accident.
• Paying off medical bills: Medical bills can add up quickly after a car accident, even with good insurance. And if you don’t have insurance, you could be on the hook for five figures or more. Apply for pre-settlement funding and stop stressing about how you’ll pay those bills off.
• Paying for in-home care: If you’re disabled after your accident and don’t live with anyone who can help you around the house, you may need to hire an in-home aide. Unfortunately, insurance usually doesn’t cover this expense. You can use your settlement advance to hire someone to help you with chores, running errands, and preparing meals.

How To Apply for Pre-Settlement Funding

Rockpoint Legal Funding makes the funding application process as easy as can be. Here’s how it works:

1. Look over our requirements to ensure you meet them before applying. You’ll need to have an attorney before you apply, as we will work closely with them throughout the funding process.
2. Fill out the quick legal funding application form and submit any requested supporting documents, such as copies of medical bills and statements from your doctor.
3. Our team will review your application and determine whether you’re a fit for our funding. We usually make a determination within 24 hours of your application.
4. If you meet our requirements, we’ll work with you and your lawyer to determine the amount you need to borrow. You’ll usually have the money in your account within 24 hours.
5. When you win your case, your lawyer repays us out of your settlement. What if you don’t win? Our funding works on contingency-based repayment, so you don’t owe anything if you lose the case.

Financial Relief Is Just Around the Corner

You shouldn’t have to stress over money when you’re trying to recover after a car accident. Rockpoint Legal Funding offers immediate financial relief that helps accident victims stay financially afloat while waiting for their cases to settle. With our auto accident funding, you can focus on feeling better.

Apply for a settlement advance now or call (855) 582-9200 to learn more.