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If you have been injured in an accident or experienced some form of harm that has led to a legal settlement, you may be considering taking out a settlement loan to help you cover your expenses while you wait for your case to settle. But what exactly are settlement loans, and how do they work?

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While both pre-settlement funding and traditional loans offer financial assistance, they differ in several significant ways. Pre-settlement funding is specifically designed for plaintiffs who are involved in a legal case and need financial support while they await the outcome of their case. Traditional loans, on the other hand, are available to anyone who meets the lender’s requirements and can