Could a car accident loan help you get a better settlement?

HM Capital
2 min readJan 18, 2021

At first glance, that seems crazy, right?? Aren’t ‘lawsuit loans’ supposed to be crazy expensive?

Like most things in life — it is a matter of perspective. Take for example the following scenario:

  • You were injured in a car accident 6 months ago. You can’t work because you just had surgery on your back, and you have no income. As a result you can’t pay the mortgage and you are about to lose your home.

If you are in a bind like that one — you might sell low on your settlement and pressure your attorney for a lower settlement.

Aren’t ‘lawsuit loans’ supposed to be crazy expensive?

So of course, it does not make sense to hold out for your settlement, since it can take a while to get there (especially with clogged COVID-19 courts). Enter plaintiff pre-settlement cash advances (also known as lawsuit loans, even through they are not really loans).

You essentially sell to a 3rd party a portion of your future settlement for some immediate cash. This way — you pay the bills that you owe now, you don’t go into foreclosure and become homeless, and you still get to litigate your personal injury case all the way through and get maximum reward.

This all seem pretty simple but not all lawsuit funding companies are the same. Make sure to do as much research as possible — some companies charge upwards of 90% a year or more in interest. Make sure your lawsuit loan contract has the following features:

  • Simple, non-compounding interest rates
  • No fees aside from the interest rate
  • Cap on what you owe back

A lawsuit loan is “money of last resort.” Get money from friends, family, or the bank before you resort to this. But if it all fails — getting a cash advance against your lawsuit for personal injury is a fast, and easy way to raise some funds fast.

To learn more visit our site:


Lawsuit Loans