Pre-settlement funding is also known as lawsuit loans or lawsuit funding. It provides cash advances to the victim of a personal injury case while their lawsuit is on trial. But the problem is how to get the best deal. Or how can you judge if the deal is best for you?
But don’t worry! We are at your back. This ultimate guide will guide you all about the good deals of pre-settlement funding.
To understand a good deal of pre-settlement funding, let’s take the example of shopping. Let’s suppose you went to buy a television for your home. You must want to have the maximum features of the television.
However, you want it not to be a big damage to your pocket, right? We all do the same! Similarly, you might want to have a good deal of pre-settlement funds.
According to the Bureau of Justice Statistics, only 3% of personal injury cases go under trial verdict. However, the remaining 97% of personal injury cases are settled out of court. Do you want to know more about the best deals and pre-settlement funds? Let’s jump into the article.
Definition of Lowest Cost Pre-Settlement Funding
Lowest cost pre-settlement funds are the best deal for your lawsuit advance. It provides numerous benefits and can help you get out of the challenging situation as soon as possible. However, the funding companies look for the best Return on Investment policy. The more risk factors they see in your case, the more they will charge you. Also, the interest rate on these funds varies from 27% to 60%, according to your situation.
However, to break the best deal and get the best lowest cost and low interest pre-settlement funds, you can minimize the risk factors of your case. But the question occurs how? To get the answer, let’s dive into the next section.
How to Minimize the Risk Factor to Break the Good Pre-Settlement Funding Deal
Here are some tips and tricks you can follow to get the lowest rate pre-settlement funds. Let’s tighten your seatbelts!
1. Say No to Brokers
The first tip is to say no to the brokers. This tip is helpful because the more brokers involved in your case, the higher you will charge on pre-settlement loans. So in order to get the lowest cost pre-settlement funds, try to apply directly to any reputable funding company. The company should have at least 10 years of experience.
2. Provide Sufficient Case Details
In order to secure the best pre-settlement funding rate possible, ensure your attorney gives all the necessary information to the funding firm. Lawyers may have hectic routines, but remember that they are your representatives. Therefore, they should take the time to get you the best pre-settlement funding deal on the market.
3. Go for the Best Option
Your attorney is your representative in the case. He may suggest to you the funding company of his choice. There are possibilities that this may or maybe not be the best option for you. So, to lower the risk factor, always investigate on your own too.
Be your own advocate when it comes to choosing the funding company. However, make sure to review your lawyer’s options as well as those you investigate yourself.
4. Be Aware of Commissions
You should avoid brokers at any cost. Ask any company you contact if they are a direct pre-settlement lender. If not, inquire about their commission, as greater commissions typically translate into higher expenses for clients.
So make sure you know everything about the commission before applying for lawsuit funding.
How to Judge Best Deal for Your Pre-settlement Funds?
By going through the previous section, you understand how to minimize the risk factors of your pre-settlement funds. Now the question might occur in your mind about how to judge if the deal is best for you.
In this section, we will discuss the primary factors of the best pre-settlement funding deal. Let’s get into the details.
1. Always Go for the Non-Recourse Pre-Settlement Funds
Non-recourse funds are the funds that you do not need to repay in case you lose the lawsuit. So, make sure you always go for the non-recourse funds.
2. Always Ensure to Have the Lowest Interest Rates
After you win the case, you have to repay your pre-settlement funds. However, there are interest rates applied to the funds. So, always ensure to break the deal with the lowest interest rate possible.
3. Always Go for a Loan That Has Lowest Fees
While pre-settlement funding loans can have various fees, look for a lender who can reduce or eliminate specific fees entirely. Working with a direct lawsuit loan company allows you to avoid many of the traditional fees charged by traditional brokers.
Advantages of Getting the Lowest Cost Pre-Settlement Funding
After knowing all about the lowest cost pre-settlement funding. Now let’s move towards what are the benefits and advantages you can enjoy with these funds.
1. Help You Out in All Expenses
Pre-settlement funds can rescue your family, business, and even good credit! The expenses occur even if you are injured and unable to work. The pile of these expenses can be hectic and challenging. But pre-settlement funds can help you out in this situation.
You can also apply for the same-day approval pre-settlement funds if you are in urgent need.
2. No Repayments If You Lose the Lawsuit
If you lose your lawsuit, you do not need to worry about the repayment of settlement funds. This is how non-recourse funds can help you. You are not obligated to repay it in case of losing the lawsuit.
3. No Credit Checks
It is acceptable to describe your credit position and capacity to pay. This is because pre-settlement funding providers do not perform credit checks or income verifications.
4. Get Help from Paralegals
Use paralegals to assist you during the process. Their job is to assist law firm clients, so you should spend time having them assist you.
Pre-settlement funding is the amount you can acquire for your daily expenses and medical bills. However, repayments and fees of pre-settlement funds can sometimes push you into challenging situations.
But don’t worry! There are funding companies that can provide you with the lowest-cost pre-settlement funds. So always ensure to break the best deal when it comes to pre-settlement funds.