Loans on Settlements: Pre-Settlement vs Post-Settlement

A settlement loan or lawsuit advance is designed to help individuals who are involved in a lawsuit. It’s offered by private lenders and can be used for a variety of purposes, such as paying for medical expenses, legal fees, and living expenses.

If you want to know more about loans on settlements in Australia because you want to apply for one, you’re on the right page. They cover two major categories: pre-settlement and post-settlement. 

This article will discuss the differences between the two, their overall process, and the types you can get. 

What this article covers:

Pre-Settlement Loan vs. Post-Settlement Loan

Pre-settlement is a loan given to an individual whose case hasn’t reached a court judgement yet for the settlement. Post-settlement is for individuals whose case already has a guaranteed settlement but are still waiting for it to be released. They can be loans for short term.

People get pre-settlement loans in Australia because they provide financial assistance while waiting for their cases to be settled. 

These can be helpful if you can’t work due to your injury or illness or are looking for a loan for job seekers since your current one is the reason for the trial. It can cover your living expenses. However, the interest rates on pre-settlement loans can be high.

loans on settlements

Post-settlements, on the other hand, have low-interest rates. It’s because there’s already a predetermined date for the release of the settlement, which will serve as collateral for the loan.

It’s also a versatile loan since you can use it for multiple purposes. 

For example, you just started your job and are looking for a loan, but you got into a car accident. If you win the case, you’ll have a settlement date, making you eligible for a post-settlement loan. You can use it for the expenses you need for just starting your job.

Process of Settlement Loans

The process of obtaining loans settlement, either pre or post-settlement, is straightforward.

All you have to do is contact a lender, and your lawyer will provide them with information about the case and the amount of money being sought. The lender will then review the case and determine whether or not they’re willing to provide a loan.

You may rely on loan finders, such as Orange Loans, to do the finding for you.

Once approved for the loan, you’ll receive the money within a few days. You can pay the loan over time, depending on the terms set by the lender. 

The process will be just like any other loan after you get approved, like loans for students or loans for self-employed. 

settlement loans

Types of Settlement Loans

Whether pre-settlement or post-settlement loans, they usually offer the following types:

  • Personal Injury Settlement Loans
  • Work Accident Settlement Loans
  • Car Accident Settlement Loans
  • Motorcycle Accident Settlement Loans
  • Victims of Crime Settlement Loans
  • Sexual Abuse Settlement Loans
  • Medical Negligence Settlement Loans

You may use these loans for white goods or whatever expenses you have. As long as you’re eligible for the claim, no one will dictate to you how to use them.

Conclusion

Knowing what loans on settlements are will help you decide what type to get. Remember, pre-settlement loans have higher interest rates, while post-settlement loans have lower interest rates since your predetermined settlement will serve as collateral.

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