Tips on selecting a reputable legal funding company.
If you have had an accident caused by someone else and hired a personal injury attorney and now are finding yourself in financial pinch, you’ve gone online or heard from a friend about something called a lawsuit cash advance. A lawsuit cash advance (also referred to as legal/settlement funding, settlement loans and lawsuit loans) are where you are provided cash in advance of receiving a settlement. The way this works is that the cash you get will be repaid from the proceeds of your lawsuit, so if you lose your case you owe nothing to the legal funding company. Legal finance companies offer lawsuit loans, but be aware that those who heavily advertise “lawsuit Loans”, but most of what you will find searching online will be 3rd Party, Commissioned agents and Brokers. You will see Direct Funders, but there are only a handful in the entire U.S. So be careful in selecting a Lawsuit Loan company, because if they are not a direct funder but a middleman who will be paid upwards of 20% commission on the money you are sent. One way you can reveal if you are talking with a direct funder is to ask 2 questions; 1) If approved, can you overnight the check (all will say yes), then ask 2) What is the company name that will be on the check? That is where if a Direct Funder, they will say the name of the company you called. If a commissioned agent or broker, they will say they something like one of our investors. The truth is that those “investors” are just Direct Funders that you could have called in the first place to cut out the middlemen. So when you select a direct funder like Pegasus Legal Funding LLC for settlement loan, be sure you understand the costs, give the decision to accept the funds very careful thought, and then we at Pegasus encourage you to talk to other lawsuit loan companies to find the best deal for your lawsuit loan. We’re so confident that you will stay with us that we offer the “Best Deal” guarantee, if you get a better deal and send it to us in writing, we will offer a superior deal or send you a check for $200.00!
What Is a Legal Funding?
With a pre-settlement loan, you getting a cash advance against the future proceeds of your lawsuit or claim. These “lawsuit loans” are a way for those adversely affected by their personal injury and are unable to work and collect a salary or have large doctors bills because as result the accident. It is not a secret that insurance companies will prolong providing restitution for those injured and plaintiffs can obtain a settlement loan to pay bills of daily living (rent, car payments, house loans, or doctors bills).
-Learn more about lawsuit loans and how they work
You should exhaust all other alternatives
Lawsuit loans can be expensive because unlike traditional loans where you make monthly payments right away, you are only obligated to repay the pre-settlement loan at the conclusion of your case. During that time interest just increases the amount you will pay out of the proceeds of your settlement or judgment. An important piece of information is that you will not be required to pay more than your settlement or award.
Legal Funding Costs are dependent on how long it takes for your lawsuit to finish
The legal system works slowly and insurance companies are in no rush to pay for the injuries caused by the defendant, their customer. Insurance companies know that plaintiffs are usually in need of cash and that this will pressure those injured to settlement for a lower amount than their case is worth. It is not unusual for personal injury cases to take months or years, so be prepared to the length of time it will take and let your attorney do their job of getting the settlement you deserve
Who Qualifies for a Settlement Loan?
There 3 things necessary to qualify. Liability; this is the evidence that your attorney will present first to the defendants insurance company. It could be the police or accident report, witness statement(s), photos of the incident area. Even better is when there is a offer from the defendants insurance company. Because we are taking a substantial risk we provide funding if confident that you will settle for sufficient amount.
.:About the author:.
James Sheridan is the Contracts Manager at Pegasus Legal Funding LLC and is responsible for the final stage of the funding approval process. James focus and priority is delivering to PLF’s clients the funds they need as quickly as possible