Each and every one of these pre-settlement funding companies will tell you that they have the lowest rate, the fastest turnaround, and can get you the most money.
Many companies say that they’re #1 rated or the best lawsuit loan company. They can’t all be right, so how do you sift through fact and fiction?
Finding the best lawsuit loan companies
The best lawsuit loan company is not necessarily the one that shows up on your TV or first on a Google search.
Research pre-settlement funding
The pre-settlement funding industry is unlike any other. There is very little regulation and a huge information mismatch between plaintiffs and cash advance companies.
Unless you’re an accomplished personal injury attorney or big-wig finance guy, it can be tough to understand the true risk profile of your personal injury case or the base-line value.
Look into which funding companies have the lowest rates for settlement loans. See if the type of injury you sustained is covered by their policy.
How quickly can the company get you your settlement funding, is it in 24 hours or longer? Do they cover claims such as medical malpractice lawsuits, FELA, and car accidents? Does the company follow simple rates or compound rates? Is a credit check involved?
Before applying
Look online at resources like NOLO, or CompareLawsuitLoans’s guide to choosing a lawsuit loan company. Take a look through the wealth of articles on our blog:
The information above is all geared towards helping a plaintiff get the best rate possible on your pre-settlement lawsuit loan.
After applying
If a legal funding company doesn’t reach out to you, and instead just calls or contacts the attorney on your case, be wary. A good pre-settlement funding agency is on the plaintiff’s side. They should be providing daily updates navigate here on your case, be easy to reach, and return your calls.
Be sure to fact-check along the way. Did they promise you ZERO fees for your case? Make them stick to it or walk.
Are they trying to pressure you into signing a contract by saying it will soon be off the table? Take their contract to another lawsuit loan company and see if you can get better terms elsewhere. Don’t let anyone pressure you into signing something you don’t understand or aren’t sure of. Rushing into lawsuit funding is a bad idea.
If your lawyer refers you to a pre-settlement funding company, ask them why.
Like any other lawyer, most personal injury attorneys have their clients’ best interests in mind, but some don’t. Make sure you ask them questions so you find the best pre-settlement funding company. Your attorney will know more about lawsuit funding than you do, so try to learn from their experience.
Good reasons for referring you to a pre-settlement funding company would be that they have good rates, charge no fees, only charge simple interest.
These are good answers. It sounds like your attorney is looking out for you and your settlement. You should follow-up by asking what they’ve charged clients in the past, or ask to see a sample contract.
Shaky reasons for referring you to a legal funding company are I’ve worked with them a lot before, they handle all of our clients’ funding needs.
These are shaky because they provide no real information. You should follow-up by asking why they prefer to work with this company, or why they have sent them cases in the past.
Red flag reasons for referral are They don’t ask for a lot of information, they’re easy to work with, or they take reductions at settlement.