If your business has filed a personal injury lawsuit, and is in need of finances, then you may have to consider a lawsuit loan. A lawsuit loan also goes by the name lawsuit cash advances, settlement funding, or lawsuit funding. Today, lawsuit companies do not spare any coin when it comes to advertising lawsuit loans. However, refrain from jumping into any company you encounter.
Lawsuit loans are expensive. However, they can be of great help if used in the right way. When shopping for a lawsuit funding company for your business, it is important to understand the costs involved. In addition to this, ensure you understand all the terms a company presents to you.
With these loans, you borrow money against the settlement or judgment you expect to obtain from a lawsuit. These loans are quite popular among the personal injury plaintiffs that incur large medical bills or lose income because of an injury. Most often, plaintiffs seek a settlement loan to cover medical bills, mortgage payments, car loans, or living expenses.
Shopping around for the best lawsuit loan
Most personal injury plaintiffs receive numerous lending offers. Find the best deal can be challenging. Where does one start?
Your attorney – Your attorney should be your primary resource. He or she is always in the know on which lender is the best and those to avoid like a plague. Your attorney also helps you immensely when it comes to negotiations.
The ALFA – This is another resource you should not overlook. It is the lawsuit funding’s main trade association. The American Legal Finance Association usually publishes a comprehensive list of the best practice to which members completely agree to abide. It covers subjects such as false advertising, conflicts of interest, disclosure requirements, and lending amounts. You should keep in mind that this association’s primary mission is to promote all the interests of it members and not yours.
Since you now know a thing or two about lawsuit funding companies, here are a few guidelines that should help you settle for the best lender:
Compare interest rates – Lenders call interest rates “funding fees.” Since the rates are normally generally high, such information might be hard to find on sites. Until the lawsuit funding company evaluates your case, it might be reluctant to provide a quote. Therefore, leave the work of comparing rates to your attorney. He or she is better at doing it.
Inquire about application fees – Some companies normally charge just to consider and/or evaluate your case. However, others do it for free.
Ask about how the company compounds their interest – Most companies compound their interest monthly. Because compounding interest normally means that you pay interest on interest, the more frequent an interest is compounded, the more one is likely to pay when the case concludes.
Do you qualify for a lawsuit loan?
Before a lawsuit funding company gives you the fund, it must ascertain whether you qualify or not. For this reason, the company weighs the chances of your lawsuit pushing through. If the chances are high, then you will get the funds, and the vice-versa is true.
Carron Gyle is the director of a leading lawsuit funding company. Talk to him today if you are looking for the best ways to settle for a business lawsuit loan. Find more information about leases on www.leasequit.com.