Tag: Lawsuit Loan

Top Questions you should ask to find the Best Lawsuit Loan Companies

Finding an ethical company to borrow lawsuit loans is one of the most important considerations an individual will make when it comes to litigation finance. While there are various companies that provide services, it is very difficult to find an honest company that is not driven by malicious intent and greed. There are many companies that would drain your finances before the case is concluded and thus, it is very important to conduct your research and obtain advice from trustworthy sources. 

Litigation finance, also known by the name of a lawsuit loan is an industry that is growing at an accelerated pace. Lawsuit loan companies, or lawsuit funding companies, enable individuals to get accident settlement loans before a settlement is awarded. It is a way for you to continue pursuing your case without worrying about funding and payments.

Lawsuit loans are very beneficial when it comes to personal injury lawsuits. For example, if you are in the middle of a personal injury lawsuit, it may become onerous to keep up with regular bills, medical bills, and other expenses. You might find it increasingly hard to maintain your living costs especially if you have had to miss work due to your injury and similarly, finding another job to pay your costs is also out of the question. In the midst of such stressful situations, litigation-prone companies can exploit your situation and force you into accepting less favorable settlements early on in order to cover bills. Tribeca steers you away from litigation-hungry companies and ensures you carry on fighting without worrying about expenses, medical bills, and other costs. 

Nevertheless, litigation finance is an industry that remains highly unregulated in comparison to other financial products designed for consumers in this space. Therefore, vulnerable plaintiffs can be exploited by accepting high fees and prolonged litigation which adds up to the costs.

1. Will they work as a team with your attorney

Reputable lawsuit loan companies will make contact with you personally and will also closely collaborate with your attorney. Your attorney and the company will build rapport and work as a team, so you can focus on recovering without having to worry about the technical details of your case. 

Pro Tip: Be wary of lenders who pressure you to sign contracts straight away. 

2. Are they reachable?

Another important consideration you should keep in mind is that you should be able to get a hold of them whenever possible. Going through litigation is already a stressful process and the last thing you need is an unresponsive company that does not return callbacks and is not supportive. You should be able to make a call and speak to a real person who will deal with all your queries and problems quickly. Even if you have to leave a message, you should expect a call back the same day.

3. Are the agreement terms precise, clear, and easily understood?

Ensure you read the loan contract thoroughly and understand the terms of the agreement well before coming to any agreement or signing the contract. There are some companies who will add in extra fees that you might miss and this could cost you a lot of money. 

Pro Tip: You should walk away if the terms are difficult to understand and there is a lot of fine print. Remember a good funding company will have clearer, precise, and easily readable terms. It will also include a table clearly setting out how much you will owe them in 6 months, 1 year, 18 months, and so on. Look out for agreements with clearer structure, less fine print, and different time frames involved.

4. Do they have a competitive interest rate? Ensure that there is no compound interest.

Be wary of loan companies who want to charge you 50% plus interest. Another thing you should also be wary of is whether the company compounds the interest and if so how often. Compound interests are problematic because it can build up and be onerous for you to pay back and might as well eat into your settlement leaving you with less money. It is best to find a loan company that only charges simple interest.

Pro Tip: You can get your money in less than a day with Tribeca and it also offers simple interest in all litigation finance.

5. Do they have a consultation fee?

Be wary of lawsuit loan companies who charge you for only looking over your case to ascertain if you qualify, you should not pay an upfront fee. Ensure they are not charging you before they even take up your case.

6. Risk-free Funding?

Remember an honest lawsuit loan company will have  “non-recourse funding” and won’t ask you to pay any money in case you lose. Be wary of situations where lenders might ask for more money than your settlement is worth. Look out for companies that have a cap on how much money they can take and ask this before you sign anything.

7. Open to all questions?

Good lawsuit companies should always answer all your questions and if they seem reluctant or unresponsive, then they are not the right company for you. 

Pro Tip: It is recommended that you always talk to your attorney before making a decision as they will be in a better situation in understanding how pre-settlement funding works and ensure you get a good deal.

Do you meet the requirements for a lawsuit loan?

The good news is that a lawsuit loan company will always look at the probability of you winning the case and they would not take a case if it’s risky lending you money since most of them have a no win/no pay policy.

They will usually quickly gather all the relevant information from you and your attorney as most of them either guarantee same day funding or at least give you the money within 24-48 hours. Remember, it is in their best interest to not lose you as a customer so most of them are responsive. 

5 Questions You Should Ask When Looking for a Lawsuit Loan

Lawsuit Loans are also called pre-settlement loans, legal funding, or cash advances. They were developed to help plaintiffs without financial means get by for the duration of their lawsuit. Most people do not stand a chance against large corporations. Their robust financial means allow them to drag the legal process on for months or even years.

While struggling with day-to-day expenses, you might feel pressured into taking an early settlement. That’s why Tribeca Lawsuit Loans offers pre-settlement funding to help support you through this financially challenging time so that you can wait for the settlement you are entitled to.

What Is the Best Lawsuit Loan Company?

Settlement loan companies are like most businesses: there are good ones, and there are bad ones. Knowing the difference can mean everything when you’re trying to avoid defaulting on a home loan or pushing back your retirement plans.

Because not every pre-settlement loan company is created equally, you should ask questions and shop around to find the best. After all, you’ll want to avoid having to borrow from your 401(k), pull from your home equity, or take other extreme measures to come up with cash.

Suppose you are looking for pre-settlement funding to help you bridge the financial gap throughout court proceedings. Ask yourself these five questions to make sure you get a reputable legal lender.

1. What Can I Spend My Pre-Settlement Loan On? 

As soon as you receive your pre-settlement loan funds, you can spend them however you see fit. There are no restrictions. Your cash advance is designed to help you with:

  • Living expenses
  • Extra medical bills and other healthcare
  • Last month’s electricity bill and other utilities
  • Missed rent or mortgage payments
  • Food and groceries
  • Car payments

Or any extra financial stress you are experiencing for the entire duration of your lawsuit.

2. What Happens to My Lawsuit Loan if I Lose My Case? 

By default, a funded lawsuit means that you have a strong case. This is because legal financiers only extend lawsuit loans when they believe a case will reach a successful settlement.

However, in the slight chance unforeseen circumstances prevent you from winning, you will not be obligated to repay the lawsuit loan. Pre-settlement loans have a non-recourse structure, which means you are not liable to repay the loan if you lose. This makes it 100% risk-free.

3. Do Lawsuit Loans Have Fees?

Lawsuit loans are designed to alleviate the plaintiff’s financial stress for the duration of the trial. Therefore, there are no upfront costs for pre-settlement loans.

Lawsuit loan companies make money from interest charged on the loan amount. The loan interest and principal are then repaid from the settlement amount when your trial concludes.

4. How Fast Can I Get a Lawsuit Loan?

It can take up to 24 hours to receive your cash advance after you’ve been approved for pre-settlement funding. We’ve streamlined our application processes to better assist our clients with their pressing financial needs. Once your paperwork and supporting documents have been received by us, you could receive money in your account within a day.

This process moves just as fast whether you’re applying for legal funding in-state or out-of-state. Tribeca Lawsuit Loans offers nationwide coverage for our clients and can deliver the same fast service regardless of where you reside.

5. Do I Need a Lawyer for My Pre-Settlement Loan?

Yes. To support your lawsuit loan application, your legal lender will request documentation that only your lawyer can supply. Additionally, your attorney will be involved in your legal funding application and will likely need to sign documents to get your loan approved.

Therefore, to be eligible for your pre-settlement loan, you must already have a lawyer actively working on your case. At a minimum, he or she must have performed essential groundwork to get the ball rolling.

How to Get a Loan From a Lawsuit Settlement

Once you file your personal injury lawsuit, you apply for your pre-settlement loan with a lawsuit funding firm. The funding company you choose will then analyze your case to establish the amount you may get if you win your suit, or, since most injury cases are resolved prior to trial, how much your settlement will be.

The lawsuit loan company will then offer you funding, and in exchange, you’ll pay the lender using proceeds from your judgment or settlement. Thus, you typically won’t have to pay anything prior to the resolution of your case.

Start the Application Process With Tribeca Lawsuit Loans

Are you finding it difficult to make ends meet at the end of the month while waiting for a settlement from a pending lawsuit? Are you worried that even if you do win, you won’t see the money right away? These are questions that many plaintiffs ask before deciding whether to get legal funding.

Let Tribeca Lawsuit Loans give you peace of mind and access to funding to support you for the duration of your trial. We fund personal injury, product liability, medical device, and labor law cases. So, give Tribeca Lawsuit Loans a call or contact us by filling out our online contact form today.

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