Were you injured in an auto accident? Are your medical bills piling up as you wait for your settlement? With the median settlement of $95,000 for personal injury cases, you can see just how quickly all your bills and expenses add up.
Lawsuits can take a long time to settle. Meanwhile, your bills don’t go away. Finding yourself needing money? Then, a pre-settlement loan may be for you.
When you get a lawsuit loan, you borrow money against your upcoming settlement for your injuries. These loans are popular for plaintiffs with large medical bills or loss of income because of the injury.
By working with a lawsuit loan company, you can get the needed money in your pocket as you wait for your lawsuit to settle. Keep reading to learn how to pick the right settlement funding company, so you can focus on recovering from your accident and not the bills piling up.
1. Look for a Reputable Lawsuit Loan Company
When you start looking for a lawsuit lending agency, know it can be tricky. You want to make sure you choose the right option because selecting a less than reliable company can be disastrous. There are companies that will prey on your misfortune.
Start with a list of lending companies. To get started, talk to your lawyer and ask for their recommendations. Your attorney will most likely have options on which are the best lenders and which ones you should avoid, and your attorney can also help you negotiate the best terms of your loan.
You can also check out the lawsuit funding’s trade association, the American Legal Finance Association (AFLA). They publish lists of best practices and which members agree to abide by these terms. Some of the best practices in this agreement include subjects like disclosure requirements, lending amounts, false advertising, and conflicts of interest.
However, you shouldn’t base your decision solely on ALFA because it’s a trade association, and its main mission is to promote the interests of its member companies.
2. Find a Company That Will Work Closely With Your Lawyer
Another big consideration when selecting a settlement loan provider is how well the company is willing to work with you and your lawyer. You want a company that has a good working relationship with your attorney so you don’t need to worry.
You do not want to work with a company that pressures you to sign a contract without working with your attorney. They should be willing to have your lawyer involved and answer all your questions.
3. Should Be Responsive and Always Available
The lawsuit lending company should always be available and should also be responsive. You don’t want to have to worry about contacting this company on top of dealing with all your bills and your injuries. You want a company that is responsive and available to answer all your queries.
4. Explains Terms of Loan Clearly
You want to work with a company that will properly explain all the terms of your loan. You should fully understand the terms of your loan before signing an agreement. You also want to make sure they do not add any additional or surprise fees.
Here are some questions you should ask:
- Is there a middleman or is this a direct funding company
- What is the rate
- How soon will you get your money
- What are the fees
You should fully understand what you have to pay back once your case settles. If any company refuses to answer questions or you don’t understand the loan, you should move on. You don’t want to be in a risky situation.
5. Offers Favorable Rates
Stay away from higher interest rates with unfavorable terms and conditions. Different companies may have different rates, so you should compare.
Most companies charge monthly compounded fees while others charge non-compounding rates.
You also want to make sure if the rate changes based on the length of your case. Florida Settlement Funding charges a flat 50 percent repayment fee that does not change or increase, even if your case takes longer than expected.
Your lawyer fees and court costs are accessed first before you get your settlement, so you need to plan accordingly.
6. Compare Companies and Ask Questions
When you start applying, you should compare multiple companies. Do not get a range for your loan. You should get an actual number and get a list of any fees.
Don’t let anyone pressure you or deal with rude employees. If a company is rude, hang up because they don’t care about you.
Make sure you start early and don’t wait until bills are overdue. You want to have time to make the right choice. You don’t want to sign a contract that leaves you nothing after your case settles.
Work with your lawyer to make the best choice. You can bargain the contract.
You should look for risk-free funding options. Find out what happens if you don’t win your case. This is called non-recourse funding.
Need Pre-Settlement Cash Now?
As you look for a lawsuit loan company, be sure you find one that is reliable, explains the terms, has low fees and is willing to work with you and your lawyer.
Florida Settlement Funding is here for you. When you apply for a loan, there are no fees, no credit check, and no payback unless you win your case. We understand that medical bills are expensive and you may not be able to work due to your injury.
Apply online today and we can help you get the money you need.