A lawsuit loan, also known as lawsuit funding and pre-settlement funding, is essentially a cash advance on money you are likely to receive through a legal settlement. If you have been involved in an accident that sees you unable to earn a living or pay your bills, a lawsuit loan may be how you avoid financial difficulties while waiting to receive your compensation. There are plenty of lawsuit loan lenders out there, but not all of them are going to be suitable for your needs. The following tips may assist with picking one that has your best interests in mind.
Ask Your Attorney
Before you compare lawsuit loans to narrow down your options, ask your attorney for their opinion on the best lawsuit loan lenders. They likely have some experience working with several companies and may have recommendations on those to consider, those to avoid, and the best lawsuit loans directory to look at. Your attorney may even be able to negotiate competitive terms with lenders, which may give you peace of mind when you’re facing financial uncertainty from costly personal injuries.
Look At Interest Rates
Interest rates don’t have to be the only thing you consider when choosing a lawsuit loan lender, but they’re certainly worth examining. Many companies list the interest rates on their websites, but some also quote a rate once they have evaluated your case.
If you are unsure what the interest rate of a specific company is, you may be able to get a general idea by making contact. You may also find they are more than happy to give you a ballpark figure, such as minimum to maximum.
Consider Application Fees
Not every lender you make contact with will be one to automatically accept your case and give you the money you need before receiving damages. Some require you to undergo a free application process, while others may charge you for an application. Before you decide on the best lender for your needs, make sure you’re aware of any of those hidden fees that may be applicable.
Compare and Leverage Quotes
If you have shopped around and looked at several different possible lenders, consider asking for quotes from all those who appear to be trustworthy and reputable. By doing so, you may be able to use each quote as leverage to get the best deal possible. Even though this can take some time to do, the labour is worth it if you can save several hundred or thousands of dollars.
Confirm Payment Arrangement
When you narrow down your options and find a lender you’re happy with, confirm your payment arrangement. This can involve making sure you won’t be paying any more than your settlement amount and nothing at all if you lose your case.
Most lawsuit loan companies offer the attractive arrangement of not having to pay back your loan if you fail to win your case. However, that doesn’t mean all do, so getting confirmation can be imperative.
Lawsuit loans are popular options for people who have no way of covering their bills while waiting for their personal injury settlement to come through. As there are likely several companies near you offering such lending arrangements, it can be worth considering this information above before you decide.