How Do Non-Recourse Loans Work?
The Internal Revenue Service (IRS) splits all forms of debt from loans into two categories: recourse and non-recourse. With a recourse loan, the person who borrows the money is personally liable for the loan’s full value. With a non-recourse loan, they are only on the hook to pay back whatever collateral covers the debt. The example the government uses is defaulting on your house payments. That is a non-recourse loan in which the house serves as collateral. If you fail to pay off your home, the bank you received from a non-recourse loan could take your house — but they can’t take anything else from you, even if the value of the home does not cover the full cost of your original loan.
However, if you had taken out a recourse loan, the bank could continue to pursue you for money (or take property from you) until the full value of your debt was paid back, rather than merely getting the value of the collateral put up against the loan.
Non-recourse loans are much preferred among borrowers, as they protect them from catastrophic debt if they default on the loan. At Silver Dollar Financial, our goal is to help injured people get the funding they need during their personal injury settlement negotiations. Since our goal is to help, we offer non-recourse loans so that injured people have as little risk as possible when getting the funding they need.
Why People Get Funding
Non-recourse pre-settlement funding is vital for a variety of reasons. In short, it is a form of borrowing from your future personal injury claim settlement or jury award so that you can spend it in the here-and-now when you need it. Some popular reasons for seeking pre-settlement funding through a non-recourse loan are as follows.
Holding Out for the Best Compensation Package
Bills pile up in the short term, and lengthy negotiations can put injured people under significant financial strain. Opposing insurance companies know this and often use this fact to their advantage. They stall negotiations, postpone mediation, ask for additional discovery, and use other tactics to make you desperate to settle for a low-ball offer that gives you way less than the full amount of compensation owed to you. This strategy is unjust, but it is the job of the insurance company and its representatives to pay as little as possible. By getting a pre-settlement loan, you ease that pressure on yourself and keep them away from it.
Covering the Cost of Daily Expenses and Medical Bills
A personal injury claim typically involves a host of damages suffered by the injured person. Some of them can include:
- Lost wages due to missed work or reduced working capacity
- Medical expenses
- Costs associated with medical equipment installed in the home
- Property repair or replacement, such as in auto accidents
- Mental anguish
- Loss of enjoyment in life
Those are just a few of the many forms of harm that you may suffer in your particular case. All of these are factored into your claim’s value and the eventual settlement or jury award you receive. While you want to make sure you get the most value out of your compensation, your usual daily expenses like rent, food, college tuition for you or your children, necessary household expenses, and more still apply. When you get a non-recourse loan from Silver Dollar Financial, you get up to $100,000 in your bank account to use on these items as you see fit.
Controlling Risk Through Your Non-Recourse Loan
At Silver Dollar Financial, we offer non-recourse loans because we want to ensure that all injured people can seek funding without fear of increased risk. You only have to pay back the agreed-upon amount, which comes out of your eventual settlement or jury award. If that’s not enough to cover the loan, its non-recourse status means that we would not be able to continue to hound you for payment.
But that isn’t the only way we protect you from undue risk. If you do not collect compensation, you do not have to pay back your pre-settlement funding loan. Since even the most seemingly straightforward personal injury claim may end with an adverse decision and leave you with no compensation, we want to ensure that you are not left having to pay back a large loan without a compensation package. If you don’t collect, you don’t pay us back. It’s that simple!
Apply for a Non-Recourse Loan Today
If you need financial assistance while waiting on your personal injury case to resolve, consider a non-recourse loan from Silver Dollar Financial. Put in your information on our Apply Now page, and you could be approved for a loan of up to $100,000 in as little as 24 hours. Take control. Take action. Apply today.