Stonewood Funding

Can You Get a Loan on an Auto Accident Settlement? (2023)

If you are a victim of an auto accident, you may encounter challenges in covering your daily expenses and medical expenses, particularly if you’ve endured significant injuries that hinder your ability to work while focusing on your recovery. 

When you’ve initiated legal proceedings to recover your medical expenses, it’s common to face a waiting period for a settlement from an insurance company or a court decision. It’s worth noting that personal injury cases often delay for extended periods, spanning months or even years.

The good news is you can get a loan on your car accident future settlement! This type of legal advance on your pending case is often referred to as pre-settlement funding or a pre-settlement loan. Funding companies such as Stonewood Funding offer to fund victims, which provides you with a portion of your expected settlement or claim in advance, giving you a source of funds that you can use to live on to pay your medical expenses and daily needs. 

These loans are based solely on the facts of your case and are not based on your credit history or credit score, so even people with bad credit can still qualify.

How Does Pre-Settlement Funding Work?

People who have been in motor vehicle accidents and have filed a case for monetary compensation related to the crash are eligible to apply for a lawsuit loan. The process starts with filling out an application with Stonewood Funding. 

After the application has been filed, Stonewood Funding will contact you to discuss the facts concerning your case and the injuries you have sustained. We’ll obtain information regarding your insurance and the personal injury attorney representing you.

Most of the lending approval process occurs between your attorney and Stonewood Funding. Your attorney will need to provide information on the likelihood of success in your case and its estimated value.

Finding time in your attorney’s schedule is usually the most challenging part of getting a loan. Understandably, attorneys are very busy with clients and court appearances. However, our friendly loan specialists will need to speak with them to finalize funding. 

Once you have obtained your loan, you can use the money to pay your bills and meet your regular expenses until your case is finalized. There are no restrictions on how you spend your cash advance.

What If I Need My Settlement Right Away?

The duration of waiting for a lawsuit to settle can vary significantly, spanning several months or even years. This situation can be particularly distressing if your injuries prevent you from working, exacerbating the challenges you face. However, acquiring an accident loan can alleviate financial strain during your recovery period while awaiting the resolution of your court case.

At Stonewood Funding, we specialize in expeditious fund disbursement, often providing the necessary funds within the same business day. To qualify for same-day financing, it’s essential to ensure that you have all the required information readily available and that we are able to communicate with your attorney.

Frequently, delays in funding arise when we encounter difficulties in reaching your attorney. You can play a crucial role in expediting the process by requesting your attorney to contact us at a mutually convenient time. Additionally, your attorney’s availability for signing the funding contract is essential.

Once both you and your attorney have reviewed and endorsed the lending agreement, we can promptly initiate the bank transfer for your loan. In cases where the entire process cannot be completed within a single day, there is no cause for concern. As long as all lending prerequisites are met, we typically provide funding on the following business day.

How to Apply for a Loan on a Settlement from a Car Accident

You will need to follow a few steps to obtain your pre-settlement funding:

Step #1: Fill Out the Online Application

You can start the process by filling out our free online application.

Our application asks for a few details, including your name, email address, and phone number. You will also be asked to indicate what type of personal injury lawsuit you have filed and the contact information for your attorney. If you prefer speaking with someone rather than handling your application online, you can call us at 844-544-3863.

Step #2: Notify Your Attorney

You’ll need to contact your attorney to let them know that Stonewood Funding will be contacting them regarding your lawsuit. This notification is a crucial step, as attorneys cannot discuss the details of your case with third parties due to attorney-client privilege unless you provide your approval. If your attorney knows you have applied for funding with us, it will be easier to speak with them and expedite your funding process.

Optional Step: Ask Your Attorney to Contact Us

Most attorneys have a full schedule involving client meetings and court appearances daily. While we are happy to contact your attorney to discuss your lawsuit, in many cases, it’s best for them to call us when they have time. We always have someone available to speak with your attorney and facilitate the settlement loan process.

Step #3. Provide Us with Relevant Information Regarding Your Car Accident

You’ll need to provide us with all of the relevant information about your car accident. The information given can help us to approve your litigation funding. You and your attorney should be able to provide us with the details of what led to your car accident, info about injuries sustained, and copies of your medical bills. The details obtained will be used to determine an estimated value of the case and how much we can provide you with in the form of a cash advance.

Step #4: Review and Approve the Funding Contract

We will provide you with a loan agreement, which you should review thoroughly with your attorney. The loan agreement provides you with the amount you are eligible to receive from us and fees associated with the loan, such as interest, origination fees, and transaction costs. The funding contract also provides the terms and conditions related to the loan. Make sure to thoroughly read and understand the contract before signing the agreement. Both you and your attorney are required to sign.

Step #5: You Get Your Funding!

Loans approved for our customers are transferred to your bank account via direct deposit. You will typically receive your funding within one to three business days. Our loan specialists can provide details on when you should be able to obtain your loan.

When Should I Consider Filing a Lawsuit over an Auto Accident?

The decision to file a lawsuit over a car accident is a personal one. Some accidents are relatively minor, resulting in little property damage and no injuries. In these personal injury cases, filing a claim is usually unnecessary. Issues arise when someone has been seriously injured. Serious injuries can require time away from work and a lengthy recovery period. If you’ve been seriously injured due to a car accident, you’ll likely need money to help you pay your medical bills and recoup the cost of lost income. In this situation, it’s best to file a lawsuit. A lawsuit can ensure that you obtain the money you need to cover all of the costs of your car accident — past, present, and future.

Are You Ready to Apply for Pre-Settlement Funding?

If you don’t know how long it will take to see your settlement, it’s time to take action. Funding companies can help you obtain funding that you can use to pay your bills and receive the financial assistance you need.

To get started today, apply for free online or give us a call at 844-544-3863.

FAQs About Car Accident Loans

How Do I Qualify for a Car Accident Settlement Loan?

To qualify for a car accident loan, you must have been in a motor vehicle accident and filed a personal injury lawsuit. Our funding company will consider the facts of your case, including the injuries you have suffered and the circumstances of how they arose. There is no credit check involved when applying for pre-settlement funding. Funding companies determine the amount to be lent based on the expected value of your case outcome.

Are Pre-Settlement Loans Regulated?

Personal injury loans, such as car accident loans, fall outside the purview of typical loans regulated by the financial services industry. These loans are distinct due to their non-recourse nature, which results in higher interest rates and substantial origination fees. As non-recourse lenders, lawsuit loan companies are unable to recoup the loan amount unless you successfully obtain a settlement for your motor vehicle accident.

To ensure complete transparency, our terms and conditions provide a comprehensive breakdown of the total loan cost and the implications if you happen to lose your claim. It is crucial to thoroughly comprehend the loan requirements before accepting pre-settlement funding, granting you access to the necessary funds.

How Do I Recover Financially from a Car Accident?

Car accidents can be financially devastating. Your car may need to be repaired or replaced, and you may have extensive medical bills that will need to be paid. If you cannot work due to the injuries you have sustained, it can create the perfect financial storm. However, all is not lost. While it can take time to recover financially, a successful personal injury lawsuit can help you get the money you need to pay off your medical debt and meet your regular expenses. If the courts or an insurance company holds up your lawsuit, pre-settlement funding can act as a buffer, filling in the financial gaps while you await your money from your case.

What If I Lose My Car Accident Case? Will I Have to Repay My Lawsuit Loan?

At Stonewood Funding, we operate as a non-recourse funding company. This means that if you happen to lose your case, we shoulder the financial loss associated with your loan. You can rest easy knowing that we won’t pursue you for loan repayment, and you won’t be required to pay us back a single cent. Similar to personal injury attorneys who work on a contingency fee basis, our payment is contingent upon your successful outcome.

We believe in providing you with peace of mind, which is why we encourage you to carefully review our terms and conditions. This will help you fully grasp the repayment procedure in the event that your settlement falls short of covering both your attorney’s fees and the loan. It’s our utmost priority to ensure that you feel completely comfortable and well-informed before making any decisions regarding pre-settlement funding.

We understand that entering into a loan agreement can be a significant decision, particularly when it pertains to legal matters. That’s why we want to emphasize the importance of reading and understanding our terms and conditions. By doing so, you will gain a comprehensive understanding of the repayment process in the unfortunate scenario where your settlement does not fully cover the expenses incurred, including your attorney’s fees and the loan amount.

We want you to have complete confidence in the lending process before accepting any pre-settlement funding. Our goal is to provide you with the support you need during this challenging time while ensuring that you are comfortable with the terms and conditions associated with our financial assistance.

Is Funding for Lawsuits Available in Every State?

Not all states allow litigation funding. Some states have specific requirements that designate the types of loans available to individuals awaiting the outcome of a lawsuit. To determine whether you are eligible for a loan, it’s best to reach out directly to us.

What Are Some Measures to Ensure Safe Driving Practices?

Driving is a significant part of many people’s lives, but it comes with risks and responsibilities. The law governs driving practices to ensure the safety of people on the road. When it comes to hiring professionals or employees who will be driving, it is essential to consider various factors, including their license, citizenship status, and adherence to driving rules and regulations.

The driver’s license is a general term referring to the legal document issued by the relevant department or authority in a specific location. It grants the person the right to operate a motor vehicle. Possessing a valid license demonstrates that an individual has passed the necessary tests and met the requirements to drive legally.
Citizenship status is another crucial aspect to consider when hiring people responsible for driving. In many jurisdictions, citizenship or legal residency is required to obtain identification. This is a policy that aims to ensure that drivers are familiar with local traffic laws and can be held accountable for any harm caused due to their actions on the road.

To represent clients involved in auto accident settlements effectively, attorneys must be well-versed in driving laws and regulations. They should gather evidence, assess the circumstances of the accident, and determine the accountable party. Judges rely on this and consider applicable laws when making decisions in such cases.
Failure to adhere to safe driving practices can have severe consequences. Reckless driving, distracted driving, or driving under the influence of alcohol or drugs can lead to accidents resulting in injuries and even loss of life. Therefore, it is crucial for both individuals and society as a whole to prioritize safe driving and follow traffic laws and regulations.

In conclusion, obtaining a loan on an auto accident settlement is possible through pre-settlement funding or a lawsuit loan. Companies like Stonewood Funding offer funding to accident victims based on the facts of the case, without considering credit history. The loan process involves filling out an application, notifying your attorney, providing relevant case information, reviewing and signing the funding contract, and receiving the funds. It’s important to thoroughly understand the terms and conditions of the loan before accepting it. Safe driving practices and adherence to traffic laws are essential for preventing accidents and ensuring road safety.

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Need cash before your case settles? There is no fee to apply, and you owe us nothing if you lose your case.

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