Frequently asked questions
What is a settlement loan?
A settlement loan is a loan to a lawsuit plaintiff, usually in a personal injury case. The loan is repaid by the borrower's lawyer, out of settlement or trial award proceeds.
How do I know if a settlement loan is right for me?
If you're being forced to settle your lawsuit early or are under constant financial pressure, then you should consider a settlement loan.
What if I have poor credit?
It doesn't matter; our loans do not depend on your credit rating.
What are your interest rates?
We charge 1.5%/month. That's 18% per year. If we deem your case to be more risky, or if you choose loan protection, our quoted rate may be increased. We compound semi-annually—not monthly or quarterly.
Do you charge any fees?
No. Unlike other lenders, all you pay is the interest on what you borrow. We do not add sneaky fees or other charges. No administration fees. No application fees.
Is there a minimum term?
No. Unlike other lenders we do not have a minimum term. Borrow for as long as you want or until your case settles.
When do we pay you back?
When your case settles or when a judgement is made by the courts. No interest is due and no principal payments are made until then.
Are your rates competitive?
Yes, the most competitive.
Can you help with my legal case?
No, but we will need to speak with your lawyer about your case before we approve your loan.
Why can't I just borrow from my lawyer?
The rules of the legal profession do not allow lawyers to lend to their clients.
What if I lose a trial?
You must still pay what you borrowed plus interest unless you selected loss protection coverage.
What is loss protection?
If you select loss protection, you don't repay your loan unless you settle your lawsuit. We currently charge an interest rate premium of 0.25% per month for loss protection.
What if I want to borrow a small amount of money each month, or every two months?
This is a great option that reduces your cost of borrowing. We can structure a plan that works for you.
Can you fund my medical treatments?
Yes, we can fund these expenses directly and roll the costs into your loan.
Can I borrow from you more than once?
Yes, just give us a call or drop us a note and we can see about getting you more money.
What if I borrowed money from another settlement lender?
No problem, as long as you meet our eligibility requirements. We would be pleased to consolidate your other loans so that you don't pay all those big company rates.
Am I eligible?
This is determined on a case-by-case basis. We only lend on personal Injury cases (no CPP, WSIB, or Medical Malpractice claims). We do not lend to undischarged bankrupts.