How to find the best lawsuit funding company?
Finding the best lawsuit cash advance company is no easy task. There is a lot of false info and even some lies you need to be aware of. The more you, the consumer, know, the better deal you can get on legal funding.
Responsibility of the best pre settlement funding companies
Respond to plaintiff inquiries promptly.
Have easy-to-understand contract terms.
Not charge upfront application fees.
Offer competitive, reasonable funding rates.
Have a non-recourse funding policy in non-loan states such as Texas and Oklahoma.
Have a positive reputation.
(1) Fast Legal Funding Company
All bills have due dates. Lawsuits and courts have deadlines. When you are struggling financially, you cannot afford to work with consumer litigation funding companies that don’t care about you and are willing to let you wait around for answers and results.
First, you want a pre-settlement funding company that answers their phones 24/7 and starts working immediately to send you the cash you need within 24 hours of approval. The best legal funding companies care and understand that you need money now. So time is of the essence.
Unlike some companies, they don’t subject you to long hold times and annoying prerecorded messages. Like, “We are the nation’s premier injury and accident pre-settlement advance company and look forward to helping you in just a moment.
Know it’s your choice of what company to call and when. So, just because a legal assistant or paralegal told you to contact one lawsuit funding company over another does not mean you need to, or it’s even a good cost-saving idea. Trust your judgment and do your research, as your settlement money is on the line.
(b) Easy-to-Understand Legal Funding Contracts
Good personal injury lawsuit funding companies do not expect you to read and sign contracts full of legal jargon or fine print. They should:
Explain contract terms in easy to understand language
Be upfront about what kinds of cases they do and do not fund
Allow you to review the entire contract with your attorney before signing.
Clearly show if they include fees and exactly what those fees are.
All of this ensures that you know what you agree to and best choose a pre-settlement funding company whose terms are fair and honest.
(c) No Application Fees
When you seek lawsuit funding, you need money for essentials, not because you are looking to waste it. Suitable pre-settlement funding companies understand that and will not add to your financial burden by charging unnecessary fees.
Pre-settlement funding companies should never charge you multiple legal funding fees. Also, they should always have a real person available to assist you with applying at any time, and when it comes to the contract, the founding team should give you the time of day to help you understand how their rates and fees are applied.
(d) Competitive Lawsuit Funding Rates
Different pre-settlement funding companies offer different rates. We strongly recommend that you ask lawsuit funding companies about their rates. You can use an online calculator to check their math. It helps to ask them to clearly explain what fees they plan on charging you on top of the interest rate.
These added fees can make a big difference in calculating the total interest rate. So make sure you know precisely how much you agree to pay if you choose to sign the lawsuit funding agreement.
Understanding this information upfront is the foundation of a great legal funding experience.
How do untrustworthy lawsuit funding companies make money?
Untrustworthy pre-settlement funding companies make money by charging you:
They charge very high rates.
They charge heavily compounding rates.
They charge uncapped fees.
They charge application fees.
They charge usage fees, typically monthly usage payments.
They charge you double interest rates because they know you are unable to make monthly payments.
(e) Non-Recourse Funding Policy
If you pay your attorney on a contingency fee basis, you do not pay your attorney if you lose your case. In states like Texas and Oklahoma, a non-recourse funding policy is the consumer legal funding company’s equivalent to a contingency payment plan.
That means if you lose your case, the pre-settlement money advanced to you by the legal funding company is yours to keep. You won’t have to repay anything if you do not recover any money on your injury case.
You only have to repay the lawsuit funding company if you win or settle your case. The repayment comes from the money awarded to you by the court or the agreed-upon settlement money that gets paid out to you.
Whether it comes from the defendant or the insurance company, you never have to pay out of your pocket.
Lawsuit funding can be your ultimate protection plan during a lawsuit. That’s why it’s essential that you only get help from a company with a non-recourse funding policy.