If you need a lawsuit cash advance, you should carefully compare funding companies to ensure you get the lowest cost offer. Also, it would help if you only worked with a direct funder and not a broker.
The right pre-settlement financing company can save you money in the long run. Here’s what you need to know about this industry.
Contact a Lawsuit Funding Company
The lawsuit funding process is lengthy and requires months or even years. Many plaintiffs struggle to meet their financial obligations during this time. Consider a pre-settlement advance from a reputable legal finance company instead of using your credit card or calling friends and family for money.
The best companies will allow you to speak with a live person on the first call and clearly explain their rates and fees. They will also have a clear mission statement and company location on their website, including a suite number. They should also be able to quote you a rate on the first call and not charge compounding interest.
Typically, the company will determine how likely you are to win your case and advance you up to 20% of what they expect your final settlement will be. The money is not a loan; you do not need to repay it if you lose your case. However, the cost of non-recourse funding can be high, and you should consider this carefully before selling your future settlement proceeds.
Fill Out a Preliminary Application
During a lawsuit, it can take months or even years to receive a settlement. You may still need to pay bills and maintain your lifestyle during this time. Rather than racking credit card debt or asking friends and family for money, consider applying for pre settlement funding.
If you want this option, contact a legal funding company and fill out an initial application. You will be asked to provide information about your case, including legal documents and your attorney’s contact information. You’ll also need to verify your identity and nationality.
It’s essential to consult your attorney before deciding on any financial solution, including pre-settlement funding. Your lawyer can help you avoid common legal mistakes and ensure your agreement is in your best interest. You may want to find a new attorney if your lawyer doesn’t support your decision.
Meet with Your Attorney
Many people don’t realize they can use pre-settlement funding to cover expenses even when their case is over. They may be able to receive their cash within 24 hours after signing an agreement. This can be vital if an accident has left them unable to work or a lawsuit is dragging out too long in hopes of forcing the plaintiff to accept a lower settlement amount.
Unlike a bank loan that requires collateral and credit approval, there is no risk to the plaintiff with pre-settlement funding. This type of financial support is often known as non-recourse funding because the repayment only happens if your case is successful.
Because not all funding companies are created equal, it is essential to research your options. While some of the litigation funding industry’s worst actors have given this market a bad reputation, some reputable companies take their responsibility seriously and consider the client’s best interests. Once you have compared offers, it’s time to choose the right one for your unique situation.
Sign a Contract
Attorneys play an essential role in the pre-settlement funding process. They must disclose information about your case to the pre-settlement company, and they must review the financing paperwork before you agree to an advance on your anticipated settlement. A trustworthy pre-settlement funding company will work with your lawyer to help you understand the contract terms, including the payback fees added to the balance if your case doesn’t resolved successfully.
Once you and your attorney have reviewed the contract, the pre-settlement funding company will send you the needed cash. You can use the funds to pay bills, cover living expenses, and prevent financial distress while your legal claim is pending.
Pre-settlement funding companies offer different products to consumers, depending on state law and the type of case they are financing. Some companies provide pre-settlement funding through purchase agreements, which assign a portion of the potential proceeds from your pending legal claim. Others, such as Oasis, offer pre-settlement funding through spring-forward agreements.
Receive Your Cash
You’ve likely seen the TV commercials or heard the radio jingles about lawsuit funding companies that offer you fast cash before your case is settled. But, before you sign on the dotted line for one of these advances, consult your attorney and carefully compare offers. You shouldn’t be saddled with a high compounded interest rate or fees that some companies charge.
Lawsuit funding aims to help you pay your living expenses and medical bills while you await your settlement or award. Many of our clients use their lawsuit advances to cover necessities like rent, utilities, and other expenses not covered by insurance, such as medical bills, auto repairs, and property maintenance.
Lawsuits can be complicated and lengthy, and it’s common for victims to need money to cover their bills while they wait for a fair settlement. While other financial products, such as credit cards and personal loans, can be available, pre-settlement funding provides plaintiffs with the funds they need to continue their day-to-day life. At the same time, they wait for a settlement or verdict.