News & Legal Update

How to Shop for a Lawsuit Loan

Posted on 8th December 2018 by Brett Levy

It’s possible to file a personal injury claim even with empty pockets. All you need is to apply for a lawsuit loan to cater all charges for the lawsuit. However, lawsuit loans are offered by different companies each with different terms and conditions. You need to carefully evaluate the available options in order to find one with the best terms.

What Is a Lawsuit Loan?

A pre-settlement loan is an advance loan to fund an upcoming settlement. You borrow cash from a lender as you expect an award from the claim you made. This means you must have the potential to win a lawsuit before applying for a lawsuit loan. These loans can greatly save you especially when in the middle of a case but lack enough money to fund the lawsuit. Lawsuit loans are mainly used to fund personal injury claims. They can also be used on other lawsuits but on rare occasions. 

Do you qualify for a pre-settlement loan?

The lender is cautious on whom to offer this type of loan. The reason is that your loan repayment heavily depends on the outcome of the case. This means the lender risks losing money in case you lose the case. There are no chances for mistakes in this considerable risk. A lending company will offer you the loan only when assured you will win the settlement. 

Once you complete the loan application process, the lender will inquire from your lawyer on the details surrounding your case. This will help the company evaluate the outcome of your case. The whole process may take a week or two depending on the cooperation of your personal injury lawyer. The lender should, therefore, be provided with the proper documentation of your case.

How to find a good lawsuit lender

There are many lending companies in the market today. This means that finding a reputable one may not be an easy process. Below are tips to help you find a good one;

Your lawyer

First, consult your lawyer on a reputable lender to choose. The attorney may have knowledge on the best lenders since he or she has been in the law industry for years. 

Consult the American legal finance association for information on the best lenders available. One of such lenders certified by the organization is My Lawsuit Loans

How to shop for the best pre-settlement terms

The next step should be shopping around for a lender with the most ideal terms. 

• Compare funding rates with different lenders. A good lender will offer affordable and reasonable fees.

• Application fees. A good lender will evaluate your case for free while some may consider charging a fee. 

• Request on compound interests. Every lender compounds differently either weeks or months. The many time a lender compounds interests, the more you will be charged. 

• Confirm on settlement terms. A company may ask for funds once you win or lose a case. 

For more information on pre-settlement loans, get in touch with My Lawsuit Loans.