If you have a personal injury case going on right now and you’re facing financial pressure, you’re an ideal candidate for pre-settlement funding. However, you must choose the right pre-settlement funding company, as not all funding companies are built equally. The golden rule is to beware of new, smaller, and less established funding companies.
Read on to learn more.
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Choosing A Pre-Settlement Funding Company – An Overview
The best lawsuit funding companies offer pre-settlement funds as alternatives for your personal injury lawsuit. You must consider various factors at the time of deciding on the right funding company. For instance, you might want to consider how quickly you can access the much-needed cash for instant use.
You must also be mindful of hidden charges, such as a flat fee or interest. Do your research to analyze the rate that you can get for your specific case and situation. Effective coordination between the funder, such as the USClaims, and your lawyer is mandatory.
With the help of your lawyer, you must go through the terms and conditions of the pre-settlement funding company before you proceed with the process.
What To Look For in The Right Funding Company
You must always start the process of searching for the right pre-settlement funding company with in-depth research. You must absolutely avoid companies with aggressive marketing and sales tactics or vague contracts. The best you can do is to ask your personal injury lawyer for recommendations, as they might have worked with pre-settlement funding companies before.
Rest assured, here are some aspects to focus on:
Opt for A Well-Established Funding Company
When it comes to legal funding, we recommend that you approach well-established companies, as these companies are more likely to be aligned with lengthy litigation processes. This way, you can access the much-needed finances without the pressure of accepting an unfavorable settlement value.
Companies that are well-established and have an extensive presence have the financial capacity to wait for clients to reach favorable settlements or negotiations. Understandably, lawsuits, especially personal injury lawsuits, can take years to settle, which is why experience and presence are two key factors when choosing a funding company.
Make Sure They Have A Transparent Price Plan
Never choose a funding company that overcharges. Some pre-settlement funding companies, especially those that are newly established, will charge a lot of money for you to use their services. In some cases, they might even ask you for 50% of the final settlement. However, the established and reputable companies will always charge a reasonable and fair interest rate. They will have a transparent price plan and disclose the fees and interest up front.
Look For A Clear Contract and Well-Defined Terms
Similar to a transparent pricing plan, you must make sure that the funding company has a clear contract with well-defined terms. The final contract between you and the company must be transparent, which is why you should take your lawyer on board so they can go through the contract with you and point out if there is anything obscure.
Final Thoughts
By understanding the potential benefits of pre-settlement funding, you can make a smart decision regarding the company you want to work with and your situation. The right company will provide you with cash quickly so that you can address your immediate concerns, such as unpaid bills and groceries. With pre-settlement funding, you can avoid unnecessary debt as you will have a Plan B for your short-term financial needs. With lawsuit funding, you can prolong the trial for better results.
