4 Important Legal Funding Tips
Quite often, a messy legal situation catches you by surprise. You may be the victim of a car accident or a medical malpractice injury. These circumstances can catch you off-guard, but there are options for funding your lawsuit to get the compensation you deserve. Lawsuit loan companies can offer you funds to pay your medical bills, your everyday expenses, and to cover your lost wages. This allows you to focus on your recovery and the legal challenges you face.
Settlement loans aren’t traditional loans
With a traditional loan, you are expected to set up a payment plan and immediately begin making payments. But settlement loans offer greater flexibility. Think of it as an advance against your expected lawsuit settlement or jury award. Plus, a reputable loan company will not require you to repay anything if you do not win your case.
Terms of repaying legal loans
Since a legal loan isn’t a traditional loan, you do not have to worry about repaying it until you have cash in hand from your lawsuit. When you’re shopping around for a legal loan, ask about the terms of repayment. Some companies charge a flat fee, in which you will pay a set amount from the settlement or jury award. Others charge a recurring fee based on a percentage of the loan. A reputable legal loan company will not have hidden fees or excessive interest rates.
Preferred legal funding method
A good company will offer you more than one financing option and won’t rush you to decide which option suits your needs. Discuss the options with your lawyer. If your lawsuit is expected to take a long time to settle or receive a verdict, you might be better off choosing a flat fee, for example.
Competing offers from lawsuit loan companies
Ask the legal funding company how their rates compare to others in the industry. Contact a few different companies and compare their rates, terms, and funding methods. Use any quotes you receive to negotiate; however, avoid thinking in terms of just the dollar amount. The legal loan company you select should also offer a no-hassle approach to funding. You should be able to get the funds you need when you need it, without having to wait for reams of paperwork to be processed.
LawStreet Capital takes the hassle out of getting a legal loan. There are no long applications to fill out, and no strings attached. We never have hidden fees, and our rates are the lowest in the industry. We take great pride in quick approval—there is no credit check, and no employment verification necessary. If you’re eligible for a loan, you could have your cash as early as the next day. We invite you to call us with any questions you have at 1-800-345-8500.