Settlement loans are provided by legal funding institutions. They are meant to alleviate the financial strain of utility bills, medical bills and other basic needs while your workers’ comp case is still being decided.


One of the advantages of workers’ comp settlement loans is that, unlike typical loans, they essentially function as a workers’ comp settlement advance against your case.


This means that not only are these loans offered at extremely low (even negligible) interest rates, as low as 1%, they also do not require a credit check, collateral, nor any upfront costs.


The non-recourse nature of workers’ comp settlement loans also means that borrowers will never be asked to pay back their loan should the case fail to settle. They allow injured workers to borrow without worrying about the outcome of their case.


Why Would I Need a Settlement Loan for My Workers’ Comp Case?

While workers’ compensation laws exist to provide injured employees with the financial protection and benefits, they so desperately need following a workplace injury, the actual process of obtaining those benefits can be quite long.


Roughly 90% of workers’ compensation claims (regardless of case strength) result in an extensive litigation process. In extreme circumstances, workers’ compensation cases can last upwards of two years to three years.


Because workers’ compensation insurance companies bear the responsibility of distributing workers’ comp benefits to claimants, they have an incentive to dispute claims by any means possible.


As such, claimants and their attorneys are often subjected to excessive litigation and a negotiation process, which includes the denial of responsibility for injuries and refusal to attribute a claimant’s injuries to work-related activities or accidents.


While attorneys negotiate with insurance providers, claimants are often unable to earn supplemental income, pay off their ever-increasing bills for medical treatment and run out of cash and savings to meet their basic living expenses like food and housing.


This can lead to extreme financial anxiety. It can have detrimental impacts on a claimant’s quality of life, and result in ill-advised financial decisions such as plunging deeper into credit card debt or engaging in high-risk and high-interest lending options, such as private bank loans.


How to Get Settlement Loans for Workers’ Comp Cases


If you’ve recently suffered a workplace injury or are currently involved in the workers’ compensation litigation process, you are likely to be looking for financial assistance of some kind.


Rather than engaging in high-risk and high-interest private bank lending options, the workers’ compensation attorneys at ECO Pre-settlement Funding strongly recommend applying for workers’ compensation pre-settlement loans from qualified legal funding institutions.


We will help our clients find reputable settlement funding companies that will provide our clients with risk-free cash advances while their workers’ compensation lawsuits are ongoing.