How to Choose the Best Lawsuit Funding Company
Always consult your attorney before finalizing anything about the lawsuit finance company or before entering into any agreement. They should understand how each legal finance company works and can give a better picture of the best legal loan company for your legal loan before settlement.
By the end of this article, you will be in a better position to identify reputable loan companies and save money on your court loan deal.
The three main factors
Let’s start with the important factors to consider when choosing a pre-settlement finance company.
- Interest rate: A good court lending company should be willing to give you information about their interest rates and a quote on the amount of finance requested in advance, before collecting information about your case. Beware of companies that won’t commit to a specific price or offer a wide range (for example 1% to 3% per month). It’s important to look for companies that exclusively charge single, uncompounded rates.
- Transparency: Reputable pre-settlement finance companies not only provide clear interest rate information up front, but they also have simple contracts with a “paytable” on the front page. A payout chart shows exactly what you’ll pay back based on how long it takes to settle your personal injury claim. A clear paytable will also allow you to easily compare quotes from different companies.
- Duration of fund transfer: Most applicants require immediate funds to meet their financial needs. The entire funding process, from start to finish, shouldn’t take more than a few days. Once your attorney has provided information to a company, you shouldn’t have to wait more than one business day for a decision. Always be sure to ask how long a process will take with each company.
Top 5 Lawsuit Loan Companies
1. Improve legal financing
Uplift Legal Funding is a pre-trial loan company based in Los Angeles, California. What sets Uplift Legal Funding apart from other legal lending companies is their interest rates – Uplift charges no upfront fees and some of the lowest rates on pre-settlement funding and settlement funding.
On its website, Uplift Legal Funding encourages complainants to compare rates to get the best deal possible.
They primarily focus on personal injury claims, including but not limited to auto accidents, premises liability, and workers’ compensation.
Uplift Legal Funding is a lawyer at Law magazine HIGH choose for the following reasons:
- Uplift is transparent about rates and conditions and exclusively charges single rates instead of compound rates.
- They offer instant quotes to applicants and prominently display pricing information on their website.
- They have extremely positive customer reviews on Google, Yelp and BBB.
- They claim to offer funds in 24 hours or less with the cooperation of your lawyer.
- Any funding refunds are dependent on the success of your case – if you don’t win your case, you don’t refund anything.
- Cash advance: $500-$250,000+. The maximum amount of the advance depends on the value of your request.
- Duration : Uplift Legal Funding can complete the entire funding process – from application to money in your account – in as little as 24 hours.
- Types of claims covered: Personal injury, car accidents, other traffic accidents, premises liability, labor law, medical malpractice, wrongful death
- Key qualities: Fast and affordable financing. Simple and uncompounded rates. Uplift can refinance pre-lawsuit loans at lower rates.
2. Peachtree Financial Solutions
The second company on the list is Peachtree Financial Solutions. It is a Pennsylvania-based company owned by JG Wentworth. In addition to pre-settlement funding, they also focus on structured settlements, annuities, and lottery winnings.
They also offer non-recourse financing to complainants. In addition to this, they assign a representative to a customer in order to provide satisfactory customer service. Peachtree Financial Solutions connects complainants with other companies who may be able to help you with your case. According to their website, they do not fund legal claims directly.
- Cash advance: They can provide you with as little as $300 up to $750,000
- Duration : You can receive an advance within 48 hours of your application being approved
- Types of claims covered: Personal injury, premises liability, product liability, medical malpractice and wrongful death.
- Key qualities: Structured rules, more than one advance and trained staff.
3. Financing of the main case
Prime Case Funding is a New York-based pre-settlement advance company. It’s one of the few companies known for low rates with no monthly payments.
Like many other companies, Prime Case Funding offers post-lawsuit loans in addition to pre-settlement financing. Prime Case sets its interest rate on a case-by-case basis and uses both compound interest and simple interest rates. They provide funding to complainants within 24 hours of case approval.
- Cash advance: Prime Case Funding can offer you an advance that ranges from $500 to $1,000,000.
- Duration : You can get cash within 24 hours of your application being approved by the company.
- Types of claims covered: Personal Injury, Surgery Funding, Medical Malpractice and Civil Matters
- Key qualities: Simple application process and post-establishment funding.
4. Funding for the Mayfield Settlement
Mayfield Settlement Funding provides pre- and post-settlement funding in all states. They can provide funding the same day your application is approved by underwriting. Their legal loan processes are streamlined and they provide prompt and helpful customer service.
Mayfield is a direct lender with no third party involvement. They do not charge any application fees or monthly payments. There is no substantial information about their interest rates on their website.
- Cash advance: Minimum of $500 to maximum of $250,000
- Duration : Within 24 hours of application approval
- Types of claims covered: workers compensation, traffic accidents, premises negligence, general negligence, workplace negligence, pedestrian injuries, personal injuries.
- Key qualities: Good for workers’ compensation funding and a quick turnaround
5. Law Money
Law Cash is a founding member of the American Legal Finance Association (ALFA). They provide pre-settlement funding and litigation funding in the form of a rolling contract. This allows an applicant to receive payment in small amounts over a longer period of time.
Law Cash prides itself on its transparency and ethics. They offer non-recourse advances – if a plaintiff does not win their case, they do not need to repay the company’s advance.
- Cash advance: They start with a minimum funding of $500 and the maximum amount of funding depends on the strength of your case.
- Duration : You can receive payment the same day your application is approved.
- Types of claims covered: Class action lawsuits, labor lawsuits, medical malpractice, workers’ compensation and personal injury claims.
- Key qualities: Litigation funding and 24/7 helpline.
How do lawsuit finance companies rate the loan?
When you drop a lawsuit for your bodily injury, you can also apply for a legal loan. The finance company assesses your case based on what it thinks is the expected future settlement amount. Then work out how much they will lend you, which is usually 10% of the value of the deal. Normally, no payment of any amount is required until your payment arrives. The lawsuit finance company deducts the amount when the judgment from your settlement is passed.
Are lawsuit loans fast?
Lawsuit finance companies provide you with cash advances very quickly. They collect important information about your case and contact your attorney to discuss the details before you qualify. If your application is successful, loan companies will lend you money immediately. Normally, once the contracts are duly signed, the money is loaned to you within 24 to 48 hours. In a personal injury case, money is urgently needed due to a mortgage payment, medical bills, etc. Lawsuit loans are the fastest way to get money when you really need it.
We hope this article gives you more information about the different pre-settlement finance companies that can meet your financial needs before your lawsuit settles. Always remember to research thoroughly and shop around for the best possible deal before signing up with a particular loan company.
This article originally appeared on the Attorney At Law Magazine website: