Lawsuit Funding Companies:
How it Works for Plaintiffs
Lawsuit funding companies are in growing demand for plaintiffs nationwide.
Plaintiffs can choose from an array of companies, but a lack of knowledge of how the process works leaves many plaintiffs scratching their head when it comes to finding the best deal.
If you’re new to lawsuit funding and need help navigating the waters, this resource guide is for you.
This resource guide will teach you:
- how to choose the right settlement funding company
- what qualities to look for in lawsuit funding companies
- what you can expect to repay if you win your case
Lawsuit funding companies provide lawsuit loans to injured plaintiffs with a pending case.
When all other options for assistance are exhausted, a lawsuit funding company can provide financial assistance on your pending case. This allows cash-strapped plaintiffs the ability to last throughout the entire lawsuit without settling early. The service is most popular with personal injury cases due to the economic consequences that come with physical injuries.
Lawsuit funding works by providing plaintiffs with a portion of their recovery before the personal injury case is settled. Since the transaction is considered non-recourse, it is by definition not a loan. Because payback is contingent on the case settling, you (the plaintiff) will pay nothing in return.
Qualities to look for in a lawsuit funding company
1. LOW RATES: Always look for lawsuit funding companies with low rates and who’s rates vary on a case-by-case basis. The level of risk in your case and the amount of interest rate should be directly correlated. The higher the risk, the higher the rate. Avoid doing business with companies that charge a flat rate to all types of cases, as the rates are usually much higher.
When it comes to choosing the right lawsuit funding company, inspecting the interest rate is key in knowing what your payback will be once your case settles. If the pre settlement funding company is charging you more than 3.5%, you’re probably getting charged too much. Once the company is done underwriting your case, you need to ask what your monthly (or fixed) rate will be, prior to signing the agreement.
2. CLEAR TERMS: Lawsuit funding is a fairly simple process, but the contracts many companies use are anything but simple. Always consult with your attorney prior to signing anything. The best lawsuit funding companies draft agreements with terms that are fair and simple to understand. Our representatives are very dedicated to making sure that all of our clients understand the agreement they’re signing.
3. FAST & EASY PROCESS: Getting through a personal injury lawsuit while injured and without a job is stressful and costly. When applying for lawsuit funding, the last thing you need is more red tape.
Professional lawsuit funding companies can deliver your funds within 24 hours of reviewing the facts of your case. Unlike a regular bank loan, approval for lawsuit funding depends on nothing but your case. This creates a more efficient funding process than traditional loans like car title, payday, or signature loans.
Why lawsuit funding companies are most commonly used for personal injury cases
If you have been injured due to the gross negligence of another, you expect justice to come full-circle. You trust that your attorney can win the maximum settlement compensation on your behalf. Unfortunately, no matter how strong your case, lawsuits take very long before they finalize.
This could spell financial disaster if you’re strapped for cash and are struggling to pay your bills. Even if your case is strong as can be, waiting months or years for a settlement is often not an option. When faced with immediate financial obligations, you need the money today—not tomorrow or next year.
Should you find yourself in this unfortunate situation, consider applying for lawsuit funding from Nova Legal Funding (NLF). NLF is a lawsuit funding company in Los Angeles, California, and provides funding for lawsuits to struggling plaintiffs nationwide. The funding NLF provides makes it so plaintiffs don’t have to wait for their cases to settle to get the cash they need today. No matter what type of case you have, if you’ve hired an attorney and were injured you automatically qualify for funding.
A professional pre settlement funding company: Nova Legal Funding (NLF)
Nova Legal Funding (NLF) is a direct-funder for lawsuits and is based in Los Angeles, California. Besides providing lawsuit loans in California, Nova Legal Funding supplies lawsuit funding and car accident loans to injured plaintiffs nationwide and with all types of personal injury claims. After spending 30 seconds filling out our application at the right-hand side of the page, we could have cash transferred to your account within 24 hours or less.
No credit checks, zero up-front fees and completely risk free. When it comes to applying for fair and risk-free lawsuit funding, Nova Legal Funding is your best option. Call today for immediate qualification—speak to a live funding specialist at our national toll-free number at (800) 760-0704.
For more useful information, visit our additional guides below: