LAWSUITS ARE A COSTLY AFFAIR
In America, litigation costs anywhere from $10,000 to $100,000 and upwards. Therefore, if an Attorney takes your case on a contingency basis, he quite sure he will recover his out of pocket costs. That’s fine for the Attorney, but how do you pay your bills? A Pre Settlement Funding Company seeks to advance people in litigation cash to keep them afloat as their case works its way through the overburdened court system.
What Is Pre-Settlement Funding?
Pre Settlement funding or Pending Lawsuit Loans refer to a Cash Advance on A Pending Lawsuit.. While not as popular as mortgages, personal and car loans, pre-settlement loans are gaining popularity in recent years.
In America, Plaintiffs starting a lawsuit (even when their Attorney’s are working on a contingency basis) are typically responsible for some portion of their legal costs, with a few exceptions. These include anti-discrimination lawsuits and in cases where both parties had a contract stating who would absorb legal fees. Their costs might include paying for depositions etc.
In addition, some states require the plaintiff to pay the defendant’s attorney’s fees if they pursue a lawsuit with no merit.
At the end of the litigation process, you want to end up with the largest amount from your settlement as possible. Towards this end, you want to choose a Lawsuit Funding Company with the lowest interest rate and operational fees.
Picking a good Pre Settlement Funding Company is essential to achieving this goal.
Here are a few considerations to keep in mind while going through the funding process.
1. The Interest Rate and Other Fees
Like with any other loan, the interest rate should be among the prominent considerations. When you initiate contact, ask this question directly and be sure to get a direct answer.
Further, inquire if the company has any monthly charges or upfront/application fees you are required to pay. You are much better off with a company with no such costs.
Remember the payment for the loan will be made from your settlement amount. The higher you pay in interest and fees, the less money you will end up with.
2. Apply for a Realistic Amount
Pending lawsuit loans can be expensive. In essence, the funding company gives you 10 % – 20% of the total monetary value of your case.
It is imperative to find an approximate value of your case from your attorney.
With this in mind, apply only for an amount you absolutely need. Once the cash is advanced to you, have a clear budget and stick to it so the money can support you through the duration of the trial.
3. Keep Your Lawyer in the Loop
The entire funding transaction will happen between the funding company and the law firm you are using.
For this reason, it is important to let your lawyer know you are seeking funding and from which company.
This way, they can prepare whatever documentation might be required, and also respond to the funding company in a timelier manner.
When all parties involved work in sync, things are bound to move a lot faster.
4. Look for Transparency
You can easily evaluate a company’s transparency by its responsiveness and their openness to work with your lawyer.t Look for this quality in a funding company. Also make sure not to apply to a bunch of companies at the same time. This might irritate your attorney and make the Lenders wary.
Similarly, carefully asses the wording of their contract. Pick a company whose contract is short and easy to understand.
A good company strives to simplify its wording for you to understand. A complex, lengthy contract makes it more possible to sneak in unfavorable clauses.
Be wary of companies that pressure you to seal an agreement too early on, and eliminate any funder that wants to keep your lawyers out of the process.
Again, start shopping for a funding company early, and take your time to seal a deal. Waiting too long can put a lot of pressure on you, forcing you to take a bad deal on a loan.
5. Arm Yourself with the Necessary Documents
The document request process can take time.
The busier the law firm, the more time it will take for your lawyer to furnish the funding company with the prerequisite documents.
You can be more proactive and request for copies of your case information. These can include medical reports, police reports, and demand letters, and anything else your lawyer might deem relevant.
6. Eliminate the Middleman
Using a middleman or a broker slows down the process and ends up being costlier.
When you use a broker, the loan cost is likely to cost you more because of the brokerage fees. Further, they will pass on your case details to numerous funding companies.
For your lawyer, this means fielding numerous calls in regard to your case, which will further increase their workload. More often than not, this will also increase your lawyers’ fees because the phone calls and correspondence will increase the number of billable hours.
7. Seek a Referral from Your Lawyer
With all legal issues, your lawyer is an authority. Before going out on your own to find and vet loan advance companies, its best to see if your lawyer can recommend one.
Because they have been in the business for long, they might even have a funding company they work well with. Their relationship with the company can get you heard and approved sooner than going at it alone.
However, you still have to do your own vetting, and especially with the interest rate.
8. Familiarize Yourself with Your Case
It helps to have a thorough understanding of your case.
The funding company will want as much information about it as possible before making their decision.
For any information you are unable to provide, they will have to call your lawyer. Depending on how responsive/busy the law firm is, this back and forth can take time.
If you know the facts of your case as well, it helps the funding company build a profile much quicker and make their decision quickly-which is in your best interest.
Why a Pre Settlement Funding Company?
The court process can take longer than you or your lawyer anticipate.
At LawCash911, we can ease the financial stress so you can focus on recovery and winning your case. Furthermore, in the event that you lose your case, you are not in debt with your pre-settlement company.
We charge no upfront fees to evaluate your case, we do not do a background credit check, and our application forms take less than a minute to complete and your quote is 100% free with no obligation.