A settlement loan, also known as a lawsuit loan or a pre-settlement loan, is a type of financing that is offered to plaintiffs who are awaiting the resolution of a legal case, such as a workers' compensation case. The loan is based on the expected settlement or judgment amount in the case, and it is intended to provide financial assistance to plaintiffs while they are waiting for their case to be resolved.

There are several reasons why someone might consider seeking a settlement loan for a workers' compensation case. One reason is that the process of pursuing a workers' compensation claim can be long and expensive, and plaintiffs may need financial assistance to cover their living expenses and other costs while they are waiting for their case to be resolved. A settlement loan can help cover these expenses and provide financial stability during this time.

Another reason someone might consider a settlement loan is if they have been unable to work due to their injury or illness, and they are not receiving any income. A workers comp settlement loan can help provide a source of income to help cover basic expenses and bills while you have lost wages..

It's important to note that settlement loans are a type of high-risk lending, and they often come with high fees and interest rates. It is generally advisable to explore other options for financial assistance before considering a settlement loan. It's also a good idea to consult with an attorney before taking out a settlement loan, as they can provide guidance on the potential risks and benefits of this type of financing.