Should Rates Be The Most Important
Consideration with Lawsuit Funding?
Jun 07, 2010
It seems like the number of lawsuits is going up. Why is that? There are a number of reasons, but it’s not really possible to know why, for sure, there are more lawsuits happening now than ever before. Fortunately, however, it is easy to see that more and more people are looking to lawsuit funding to help them to pay for bills while their lawsuit is going through the legal process.
Lawsuit funding is a way to gain access to money before the process of the lawsuit is actually complete. When your lawyer looks at your case, he or she has a fairly good idea whether or not it is a viable one, and if that’s the case, and you find a lawsuit funding company willing to accept your application, you could have access to part of the settlement money before a recovery is issued. Lawsuit funding gives you access to the cash that you are expected to win from your case before the case has even been finished. This means that you can pay off bills that are mounting even if you’re left unable to work.
But there are a few things to know about lawsuit funding before you jump into it, and the most important is that there are fees to consider with each advance. When a lawsuit funding company advances you money, they are doing so because they know that they will receive the money that they advance you back from the settlement if you win. They will profit from the advance, just like any bank or credit card company does, by charging fees associated with that money. You don’t have to pay these fees out of pocket – they come straight out of the final settlement, but the cost is something to consider when you’re trying to pick a lawsuit funding company that will best meet your needs.
The Most Important?
When you go shopping around for a mortgage or a loan, most people look for the lowest interest rate that they can find, and while finding low fees is important in this case, is it the most important thing when you’re talking about lawsuit funding? Not necessarily. There are a few things to take into consideration when you’re looking to select a lawsuit funding company – the first of which is the reputation of the company. Do they have a good reputation? Are they a company that you can trust? You may be able to read success stories on their website or even find testimonials posted at forums online.
Another thing to take into consideration is their customer service. Are you able to contact them easily or do calls and emails from you go unanswered? Do they require you to repay the advance even if you don’t win the case? That’s a huge thing to think about. A non recourse funding company will not require you to pay back the money that you have borrowed if you don’t win the case, as they will only advance money out to those who have good odds of their case being won when they go to court. There are all sorts of things to think about when it comes time to select a lawsuit funding company, so make sure that you take them all into consideration before you pick one.