This is a topic I deal with quite frequently when representing personal injury victims. Often, my clients will call me and tell me the accident they were involved in has financially harmed them so much, they are willing to take a loan out. The loan is typically financed by a pre-settlement funding company. When my clients ask me about this option, I try very hard to persuade them not to take out such a loan, because the interest rates can be daunting.

Basically, the way it works is this: the pre-settlement funding company will closely analyze the client’s case, and loan application, and then decide whether or not the case is strong enough to guarantee the company will recoup their money, once the case settles.

I am only a proponent of these loans if and only if the client absolutely needs the money and is willing to pay the very high interest rates. Peachtree, based in Florida, has a good reputation, as well as very favorable interest rates.