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Washington Lawsuit Funding[flexy_breadcrumb]
The demand for lawsuit loans continues to rise across the country as plaintiffs continue to learn of their numerous benefits. The increased demand has also triggered the mushrooming of an array of lawsuit funding companies that are eager to meet the growing demand. However, many plaintiffs are yet to understand how lawsuit loans work, which leaves them scratching their heads whenever they are looking for the best deal.
Lawsuit loans, also known as pre-settlement funding refers to money advanced to plaintiffs with a pending case. Lawsuit loans can be a lifesaver especially when you have exhausted all other financing options. Lawsuit funding companies help their cash-strapped clients to navigate through financial turmoil as they await settlement of their case.
Lawsuit loans are most popular among victims of personal injury since they are mostly in dire need for money to cater for medical bills and other personal expenses. Lawsuit loans can also benefit individuals with an array of cases such as wrongful termination, workplace harassment, workplace injuries, dog bites, wrongful death, amongst others.
Lawsuit loans work by providing the plaintiff with a portion of their settlement before their case is resolved. The money given to the plaintiff is not a loan, but rather an advance which is considered non-recourse. It means that you can only repay the money if the case receives a favorable outcome. If you lose the case, you will pay nothing to the lending company.
What qualities should you look out for in a lawsuit funding company?
As mentioned earlier, there are numerous lawsuit lending sharks out there, which makes it a daunting task to find the right lending company. When searching for a lawsuit lending company, the following tips can help in spotting the best deal.
Low-interest rates and fees
Simple and compound interest rates are the two main options used by most lawsuit funding companies. In case the company uses simple interest rate, it means that the payable amount is based on the principal only. In the case of compound interest rate, it means that the payable amount will be calculated from the advanced principal and the accrued interest. If your lawsuit loan is based on compound interest rate, you may be forced to pay a considerable sum especially if the case will take more than one year to be settled.
It’s always a good idea to do business with companies that charge low-interest rates. The interest rate should also vary depending on the case at hand. Also, the interest rate charged by a lawsuit funding company should match the level of risk in your case. If you are handling a low-risk case, the interest rate should be low. You should run away from companies that charge a flat interest rate in all cases.
Clear terms and conditions
Lawsuit funding should be a simple and straightforward process. But some lenders may complicate the contract making it incomprehensible to their clients. It’s always in your best interest to consult with your attorney before signing a lawsuit loan contract with any lender. A good lawsuit funding company will draft their contracts with simple terms that their clients can easily understand. You should be wary of lending companies with contracts that have hidden fees and unclear terms or repayment. You may end up getting little or nothing if you sign for a bad deal.
Fast and easy process
Nursing injuries that occurred due to someone else’s negligence or surviving with a job due to wrongful termination can be stressful and costly. So, when applying for a lawsuit, the last thing you want is more complications. Thankfully, lawsuit loans are easy to access and are designed to get you back to your feet as you await your case to be settled.
Unlike traditional bank loans, lawsuit funding companies will not require hard collateral or good credit rating to approve your loan application. The approval of your lawsuit loan entirely depends on your case.
A typical lawsuit loan contract consists of one page that can be filled online from the comfort of your home. After submitting your details, the lender will evaluate the facts of your case and give their decision within 24-48 hours. If your application is approved, some lenders will transfer the money to your account immediately.