Choosing the Right Consumer Legal Funding Company

You have a meritorious case with a good chance of winning. That’s good news, right? But did you know it could be months or even years before that money is in your hands? Appeals, delayed negotiations, unwillingness or inability to pay…all of these can contribute to an even longer wait to get what you’re owed. By availing yourself of the services of a Consumer Legal Funding company, you can get that money when you need it most.

Finance Monthly details what you should look for in a Consumer Legal Funding company, and how to determine which is the best one to meet your specific needs. The first thing to keep in mind is that before signing any contract—speak with your lawyer. They will have a solid understanding of how lawsuit loans work in a pre-settlement context.

There are three main factors that deserve consideration:

• Duration for transferred funds. Many plaintiffs are in a tight financial spot while waiting for a case to be resolved—and therefore may require immediate funds. Ideally, the funding process from application to approval shouldn’t take more than a few business days once the funder has received the necessary information from your legal team. It’s vital that you ask how long the loan process will take from start to finish.
• Transparency. A reputable company will be clear and concise when explaining interest rates, the payoff table (what you’ll pay, and under what circumstance). This will allow you to easily compare the various companies you’re considering.
• Interest rates. Obviously, the amount you’ll ultimately pay back is important. Companies should be open about rates and be willing to provide numbers in writing. Be suspicious of any company that doesn’t.

Knowing what to look for and which questions to ask is an essential part of finding the right legal funders for your situation.

You have a meritorious case with a good chance of winning. That’s good news, right? But did you know it could be months or even years before that money is in your hands? Appeals, delayed negotiations, unwillingness or inability to pay…all of these can contribute to an even longer wait to get what you’re owed. By availing yourself of the services of a Consumer Legal Funding company, you can get that money when you need it most.

Finance Monthly details what you should look for in a Consumer Legal Funding company, and how to determine which is the best one to meet your specific needs. The first thing to keep in mind is that before signing any contract—speak with your lawyer. They will have a solid understanding of how lawsuit loans work in a pre-settlement context.

There are three main factors that deserve consideration:

• Duration for transferred funds. Many plaintiffs are in a tight financial spot while waiting for a case to be resolved—and therefore may require immediate funds. Ideally, the funding process from application to approval shouldn’t take more than a few business days once the funder has received the necessary information from your legal team. It’s vital that you ask how long the loan process will take from start to finish.
• Transparency. A reputable company will be clear and concise when explaining interest rates, the payoff table (what you’ll pay, and under what circumstance). This will allow you to easily compare the various companies you’re considering.
• Interest rates. Obviously, the amount you’ll ultimately pay back is important. Companies should be open about rates and be willing to provide numbers in writing. Be suspicious of any company that doesn’t.

Knowing what to look for and which questions to ask is an essential part of finding the right legal funders for your situation.