What Is the Difference Between Recourse and Non-Recourse Loans?
All loans and associated debt are split into two categories: recourse and non-recourse. The Internal Revenue (IRS) explains that recourse loans allow the lender to extract the full value of the loan or debt from the borrower even after the lender seizes any collateral associated with the loan. In other words, recourse loans hold the borrower personally liable for the entire value of the loan. Non-recourse loans, on the other hand, only allow the lender to seize the collateral and do not allow them to pursue further payment from the borrower, even if it does not cover the full value of the debt.
For example, if you have a recourse loan for your house and have defaulted, the lender could take your home and continue to garnish your wages until the full value of your debt is paid off. With a non-recourse loan, the lender would not be able to do anything more than seizing the house as collateral. In this way, non-recourse loans are safer for the borrower.
Silver Dollar Financial specializes in providing injured people with non-recourse pre-settlement funding to help them get through the difficult waiting period before their personal injury claim resolves. As a non-recourse lender, we are a much safer alternative than a predatory recourse lender. Call today to learn more about how you can get your money when you need it.
A Non-Recourse Pre-Settlement Loan Can Help You
If you are an injured person waiting on your case to resolve, you may wait for months or even years. During that time, unfortunately, your bills and daily expenses do not go away. Instead of allowing these harms to accumulate while waiting for the opposing party or their insurance company to take responsibility, many people in your position take out a non-recourse pre-settlement loan.
Pre-Settlement Funding Is Flexible
One reason that so many people pursue pre-settlement funding is that, unlike other forms of financial assistance, pre-settlement financing is supremely flexible. Once the financial gurus approve you at Silver Dollar Financial, you can have up to $100,000 deposited into your bank account within 24 hours. Instead of directly paying off specific bills, this form of funding allows you to deal with all the expenses and damages that come with being injured, including:
- Supplementing lost income
- Paying medical bills
- Covering your rent or mortgage
- Providing groceries for your family
- Keeping the lights on
- Repairing/replacing property damaged in your accident
- Purchasing necessary medical equipment for your home
When you get a non-recourse pre-settlement loan, you get the money you deserve now that you can use it as you see fit.
Pre-Settlement Funding Counters Insurance Company Tactics
In a personal injury settlement negotiation, the opposing insurance company often uses stalling tactics to keep you under financial pressure. They know that bills are piling up, you are missing income due to being unable to work, and you may require additional therapy that costs significant money. They hope that, if they stall long enough, you will eventually cave in to the pressure and accept a settlement far lower than you deserve because you need the money now.
Pre-settlement funding is a way to take the sting out of the insurance company’s bullying. By getting a non-recourse loan, you can cover your current expenses while waiting for the best possible compensation package. Then, if negotiations are not going the way you want, you can have your attorney pursue fair compensation in court instead. The extra wait time won’t matter as much, because you have the money you need already.
The Safety of a Non-Recourse Pre-Settlement Loan
Some people may recoil when they see the word “loan,” but a non-recourse pre-settlement loan from Silver Dollar Financial is low-risk for a variety of reasons. Of course, the most obvious is that, as a non-recourse loan, we could not garnish your wages or hound you for payment beyond the loan collateral even if we wanted to! Below are a few other reasons that funding through Silver Dollar Financial is a low-risk, safe bet.
Borrowing from Yourself
A pre-settlement loan represents a way of you borrowing from your future settlement. Instead of thinking about it as an influx of outside money that you will need to pay back, the reality is that it is more a matter of taking money from your future to pay for your present.
Paying Back Your Non-Recourse Loan
With Silver Dollar Financial, the entire pre-settlement loan process is simple and straightforward. After receiving your loan, you spend those funds as needed until your settlement or award is achieved. Then, you pay back your non-recourse loan out of your compensation package, keeping whatever is left over.
Sometimes, though, personal injury claims are decided against the injured person. When that happens, you may be unable to recover compensation at all. Don’t panic. If you do not make a recovery, you do not have to pay back your pre-settlement loan! Remember: as a non-recourse loan, we would be unable to hold you personally liable for your debt anyway. You are safe in the hands of Silver Dollar Financial.
Apply for a Non-Recourse Loan Today
Are you interested in taking control of your finances? Start the process by entering your information on our Apply Now page. In as little as 24 hours, you can be approved for a loan of up to $100,000.