There are two types of loans: recourse and non-recourse. A recourse loan holds the borrower personally responsible, while a non-recourse loan does not. If you received a loan from a company, there are ways to know if you have a non-recourse loan.
If you have a non-recourse loan, the lender cannot come after more than your collateral. Collateral is something you put down as a security for the lender. If you cannot pay back the loan, the lender can take the collateral.
Your loan documentation will usually say if your loan is non-recourse or not. If you’re not sure, ask the lender about the type of debt. The debt type really only affects you if you cannot pay back the loan.
The Difference Between a Recourse and Non-Recourse Loan
As the Internal Revenue Service (IRS) outlines, a recourse loan holds you personally liable. We talked about collateral above. If you cannot pay back a recourse loan, the lender can take your collateral and more. When the collateral is not enough, the lender might take money from your wages or bank account until the loan is fully paid.
With a non-recourse loan, the lender can only touch your collateral. They cannot come after anything else, even if the collateral doesn’t cover what you owe.
Each type of loan will impact you in different ways. It’s important to understand how your loan affects you from now on. If you are considering a lawsuit loan, make sure it’s non-recourse.
Click to contact the Silver Dollar Financial Team today or Call +1(844)871-0628
Pre-Settlement Loans Are Non-Recourse
Pre-settlement loans provide money to those waiting on a personal injury settlement or verdict. Many who suffer injuries from someone else’s actions have to wait for compensation. They often need financial help in the meantime.
Pre-settlement loans are not actually loans, but they follow a non-recourse structure. You do not need to provide your credit score or income history. Instead, the only thing that matters is your case details.
After you apply and qualify for funding, here’s how pre-settlement funding works:
- A pre-settlement funding company sends you a portion of your pending settlement. The money is like a cash advance to yourself.
- Your settlement or lawsuit verdict acts as the “collateral.” You don’t have to put down anything else as security.
- When you win your case, you simply pay back the funds from what you win—and you keep the rest.
- If you don’t win your case, you don’t have to pay the money back at all.
The funding company looks at your case before sending you money. They’ll determine what type of settlement you are likely to win. From there, the company sends you a certain amount of money.
Non-recourse pre-settlement funding is a lower risk than a regular loan. The only thing “on the line” is your settlement, and if you don’t win a settlement, you don’t owe anything back.
To apply for a non-recourse pre-settlement loan with Silver Dollar Financial, click Apply Now or call (844) 871-0628 today. We can provide up to $100,000 from your pending settlement amount.
How You Can Get a Non-Recourse Lawsuit Loan
You must apply for funding with a trusted company. The company will ask for details like:
- Your name and phone number
- Your attorney’s information
- Your case details
- How much money you need
Again, pre-settlement funding does not require your credit score. The company only looks at the strength of your case. You do not need to give invasive details like a traditional loan.
After you apply, the company will see if you qualify. They’ll contact your attorney to confirm the details and get documentation. If you’re likely to win your case, you will probably be eligible for funding.
Be sure to work with a company that provides non-recourse funding. At Silver Dollar Financial, our pre-settlement is always non-recourse, which means you don’t pay us back if you don’t win your case.
Apply for Non-Recourse Funding with Silver Dollar Financial
Silver Dollar Financial is a lending company that helps clients waiting on their personal injury settlements. Our team knows that justice takes time, and you have bills to pay. We can provide you with a cash advance on a pre-settlement loan in Brookhaven so that you can cover urgent costs now.
We use a simple three-step process to apply:
- Apply online within minutes. Click Apply Now to get started.
- We’ll review your application and see if you qualify.
- If you are eligible, we’ll send you the funds you need.
We work to get you the funds in as little as 24 hours. You could have up to $100,000 from your pending settlement by the next day. Plus, we promise to be compassionate and transparent through each step of the process.