Is a settlement loan right for you?

A settlement loan from BridgePoint can be an invaluable resource when trying to make it through the litigation process. However, every situation is different and sometimes a settlement loan for your personal injury claim isn’t the best option.

Considerations when exploring a settlement loan:

  • Have other financing options been explored?
  • Discuss your situation with your lawyer.
  • Determine your true financial needs before applying.
  • If a settlement loan is required, consider a "staged" loan.
  • Comparison shop for the best terms.
  • Do not deal with a lender who is unwilling to provide loan terms/contract in writing.
  • If you live in Ontario, don't deal with any lender not approved by the Ontario Trial Lawyers Association.
  • Have your lawyer review any loan documentation before you sign.
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Our lending process

1. Application

The application is completed with basic information about your case.

2. Assessment

Your application is reviewed by BridgePoint. Additional information about your claim may be requested as part of this process.

3. Approval

You will be contacted by BridgePoint and informed of our lending decision. If you accept our loan offer, BridgePoint will prepare the loan documentation which can be emailed or faxed for your review and signature.

4. Advance

Once we receive the signed loan documents by email or fax (including your lawyer's acknowledgement signature), loan proceeds are advanced by wire transfer or EFT to any account of your choosing.

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Our loan terms

LOAN AMOUNT Starting from $1,000
INTEREST RATE 19.9%-21.9% per year
COMPOUNDING Semi-annually (NOT monthly)
PAYMENTS No interim payments of interest or principal required until the lawsuit is resolved.
Credit History Review None Required
Application Fee None
Admin Fee $75 to $375* depending on the type of loan plus GST/HST (Admin fee is payable only if a loan offer is accepted).
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Types of loans explained

BridgePoint offers three types of loans depending on what best suits your individual situation. Our lending specialists will be able to recommend the ideal loan solution.

Standard "Lump Sum" Loan

The full approved loan amount (less the Administration Fee) is advanced immediately. This provides you with all the funds to use right away as needed, but does mean that interest on that full loan amount will be charged right from the start.

Staged Loan

Typically involves an initial advance of a portion of the approved loan amount with a schedule in place to provide equal future advances, typically on a monthly basis for a set number of months. A staged loan will result in less of the loan being advanced right away so should mean lower overall interest costs to the plaintiff relative to the Standard "Lump Sum" Loan option.

Line-of-Credit Loan

BridgePoint approves a certain loan amount but only advances funds to you when requested and not necessarily on a regular monthly basis. This allows you to have access to the funds.

Frequently asked questions

If your question is not listed below, please contact us.

  • Will I be eligible for a Settlement Loan?

    If you are an individual or a business with an active legal claim in any of the following litigation areas, and you are currently represented by a lawyer, you may be eligible for our services:

    • Personal Injury (including motor vehicle accident, long term disability, slip and fall, wrongful death, product liability, sexual or institutional abuse, sporting injury, animal attacks).
    • Insurance (Claim Denial)
    • Family (Divorce)
    • Estates (Inheritance)

    Each lending decision is made on a case by case basis. Essentially, BridgePoint will independently assess the merits of your lawsuit including documented damages incurred, the clarity of liability, and the ability of the defendant to pay damages amongst other factors in determining if a loan offer can be made.

  • Does a Settlement Loan make sense for me?

    If you have access to less expensive forms of financing than the 19.5% annual interest rate charged by BridgePoint, we would recommend you pursue them before considering a Settlement Loan. This may include drawing on your savings, selling non-essential assets, borrowing from friends and family or traditional bank financing if available (and if you are able to maintain the required monthly payments on an ongoing basis). Where such options no longer exist and you and your family are experiencing difficulty meeting your basic living expenditures, then a Settlement Loan structured to meet your specific needs may be a good solution.

    Refer to the testimonials of people we have helped whose situations may be similar to what you are facing. We also suggest you review our checklist of considerations for anyone considering a settlement loan.

  • How much can I borrow from BridgePoint?

    We generally lend up to 10% of our conservatively estimated 'value' of your claim. This ensures that the amount owing on the loan by the time your case is resolved does not represent a large portion of your settlement proceeds. Our minimum loan size is $1,000 and the average loan size is approximately $5,000.

  • How long will it take for me to access the funds?

    Once we receive the application and any other requested materials from your lawyer, we can generally approve a loan within 24 - 48 hours and the funds can be directly deposited into any bank account of your choosing by wire transfer or EFT.

  • How do your rates compare to other law firm lenders?

    Our interest rates are lower than those of any other "litigation" lenders that we are aware of. Unfortunately, some lenders charge up to the legal limit of 60% annual interest on their loans when you include various administrative and other fees, or costs buried in the fine print of their loan agreements.

  • What is the difference between a lawsuit "loan" and a lawsuit "cash advance"?

    Financing companies that refer to their loans as "cash advances" are using a technicality to avoid laws designed to protect you by limiting the rate of interest that can legally be charged on a loan (which in Canada is a maximum of 60% annually). Instead of "interest", these companies charge a "premium" or "financing fee" or any other term to describe what is in essence an interest rate - and invariably an exceptionally high one relative to BridgePoint's interest rates.

  • Can I seek my lawyer's advice regarding your service?

    Yes. In fact, as we will require information from your lawyer about your case as part of the application process, we would advise you to notify your lawyer of your decision to pursue a settlement loan from BridgePoint as a first step in the process.

  • When and how does the loan get repaid?

    Subject to the terms and conditions of our loan agreement, no payment of interest or principal are required until your claim is resolved, at which time the loan becomes due in full. Your lawyer will advise us at that time, and will repay the loan on your behalf from your settlement proceeds after legal fees, expenses and applicable taxes from your case are paid.

  • Can I repay the loan before my case settles?

    Yes. We do have a minimum 6 month term for our loans, but otherwise our borrowers are welcome to prepay any or all of their loan without penalty at any time.

  • Is the decision-making process based on my credit history or income?

    No. BridgePoint does not perform credit checks on its prospective borrowers and bases its lending decisions solely on the merits of an applicant's legal claim.

  • Does my lawyer need to guarantee the loan?

    No. While we do require your lawyer to provide us with some of your case file materials (with your authorization), we base our lending decisions solely on our independent review of your case. Your lawyer is completely independent from our lending evaluation process.

  • Does BridgePoint get involved with my case?

    No. We do not interfere with your lawyer's handling of your case.

  • Why doesn't my lawyer just lend me the money?

    Lawyers are not permitted to lend money to their clients. This provides protection for both you and your lawyer.

  • What is a "staged" loan?

    While some borrowers require a lump sum amount to pay off outstanding creditors or other pressing obligations right away, other borrowers may simply want the security of knowing they can meet their rent or mortgage payments and other basic living expenses on an ongoing basis until their lawsuit is resolved. For such individuals, BridgePoint offers "staged" loans where borrowers receive pre-set monthly loan advances for certain time periods. As interest charges only accrue to amounts advanced, staged loans offer significant interest savings over time relative to lump sum loans.

  • What if my claim is not successful?

    BridgePoint is highly selective about the types of cases it will lend against and the amounts it will lend relative to the expected recovery for each case. In the very unlikely event that the net settlement proceeds to be received by a borrower are insufficient to repay the loan, he/she would still be required to repay the outstanding amount and the same interest rate would apply until the balance of the loan has been paid in full. In its history, BridgePoint has never had to pursue the recovery of a loan from a borrower whose claim was unsuccessful for legitimate reasons (i.e. not involving fraud by the plaintiff).

  • What is my role in the process?

    We only require our borrowers to provide government issued ID, bank account information and to review and sign two documents – a standard loan agreement reflecting the terms of the loan (as described above), and a direction authorizing your lawyer to repay the loan on your behalf once your case is resolved. These documents can be signed at your lawyer's office, or we can send them to you for signature by email or fax. It is a very simple and straightforward process.

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