The Difference Between a Loan and Legal Funding

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The Difference Between a Loan and Legal Funding

by | Dec 10, 2021 | Legal Funding, Medical Funding | 0 comments

Get the Financial Help You Need Without the Risk

Legal funding is NOT a loan. While there are some similarities between the two types of financing, they are considerably different forms of funding. Unlike a traditional loan, with legal funding, the borrower is not required to pay back the money unless they win their case. The legal funder absorbs the risk and only gets paid out of the borrower’s financial recovery.

At Triumph Legal Funding, we hope to dispel some of the myths surrounding legal funding in an effort to help attorneys and their clients make an informed decision about their financing options. Our goal is to make pre-settlement legal funding easy with fast approvals for clients nationwide.

If you need financial help while waiting for an accident or injury case to settle, contact our office at (973) 362-3500.

 

How Legal Funding Differs from a Traditional Loan

With a traditional or personal loan, the funding decision is usually based on a credit check, income verification, and other factors like your income to debt ratio. Legal funding, on the other hand, is based solely on the probability that your case will have a successful outcome. 

Benefits of legal funding include:

  • No credit checks
  • No income verification
  • No hidden fees or penalties

Unlike a traditional loan, legal funding is a cash advance on the settlement of your case. It is flexible financing that enables you to cover all court costs as well as medical bills, living expenses, and more while you wait for your case to close.

 

Why Do People Get Legal Funding?

Attorneys and their clients can both benefit from securing legal funding. For attorneys, legal funding can cover litigation costs as well as office overhead. For injury victims, legal funding can help alleviate the financial hardship created by an unexpected accident. 

The most significant advantage to obtaining legal funding as opposed to a traditional loan is that with legal funding, you only pay the fees if you win your case. You must repay the money you borrow even if you lose your case with a traditional loan.

 

How Does It Work?

Legal funding with Triumph is an easy three-step process. A no-risk, fast approval for legal funding begins by contacting our office or filling out an online application form. Once our funding specialists receive the application, they will review it and reach out with any questions. Then after you and your attorney sign off, we release the funds. 

Our quick and easy process:

  • Intake – Contact our office at (973) 362-3500 or by filling out an online application.
  • Review – We review your application and contact your attorney with any questions about our case.
  • Approval – Once you and your attorney sign off, we release the funds.

With a personal loan, you may have to wait weeks for a decision, only to find out that you do not qualify for the amount of money you need. Legal funding is different; funding decisions can be made within 24 hours so that you can get the financial help you need now.

 

Accidents or Injuries That May Require Legal Funding

Few people have tens of thousands of dollars to pay unexpected medical bills, and even fewer can afford to be out of work for months on end. Accident and injury victims are often presented with an unfair financial hardship. Matters are usually made worse when it takes up to a year for their case to settle. 

Cases that may need legal funding:

  • Car accidents
  • Motorcycle accidents
  • Pedestrian accidents
  • Maritime accidents
  • Train accidents
  • Medical malpractice
  • Construction site accidents
  • Slip and fall accidents

Legal funding can help change the inequity that plaintiffs and their attorneys face by providing the money people need while they wait for their case to settle.

 

Less Complicated, Faster Funding

Traditional lending can be complicated and frustrating. Between credit checks, hidden fees, and penalties, borrowers end up spending a lot of time and money to get the financial help they need. With legal funding, you pay nothing unless your attorney wins the case! Fees are paid directly out of the settlement or verdict funds received on the case.

Legal funding does not have to be complicated. Our goal at Triumph Legal Funding is to make the process as fast and hassle-free as possible. Money is available in as little as 24 hours after approval. 

 

Waiting for Your Case to Settle, but Need Money Now?

At Triumph Legal Funding, we believe that injury victims and their attorneys should get the financial help they need when they need it most. If you are waiting for your case to settle, but need money now, contact our office at (973) 362-3500 to discuss your options.

Our personal funding specialists will go over our easy, three-step process and provide you with the resources you need to make the funding decision that is right for you. Call now to get started.