Learn All the Pre-Settlement Funding FAQs
Much is written about pre-settlement funding and its role in the legal landscape. Although many questions are answered, plaintiffs might want to avoid having to sift through pages of information to answer their questions. In this post, we examine common pre-settlement funding FAQ fielded at Fair Rate Funding and discuss their implications. Many of these topics are discussed in more detail on this site, so feel free to click the links for a deeper look.
How Do I Qualify?
Eligibility for pre-settlement funding requires the applicant be:
- 18 years of age – applicants must be the age of majority in order to enter into binding lawsuit funding contracts.
- Have a valid civil claim – pre-settlement funding agreements sell a portion of settlement proceeds in a pending legal claim or lawsuit.
- Be represented by counsel – plaintiffs wishing to receive lawsuit funding must have an attorney representing them in their lawsuit and legal fees based upon a successful outcome (contingency fee retainers).
Applicants which satisfy the above are eligible to apply for settlement funding.
How Long Does It Take?
Lawsuit funding companies understand that plaintiffs need money immediately. Thus, the lawsuit loan process is designed to get money into the hands of plaintiffs as quickly as possible. That being said, how long for a lawsuit loan depends on a couple of factors.
The most important time variable involved collecting relevant paperwork from your attorney. Attorney cooperation is a pre-requisite for lawsuit loan approvals. This means attorneys must forward useful documents for review and usually hop on a quick phone call with a lawsuit funding underwriter.
In some instances, the process moves quickly and applicants are “funded” within 24 hours. This is especially true when attorneys have a working relationship with a funding company. In others, compiling necessary documents and/or scheduling a short phone conference takes more time. The good news is that you can help yourself get lawsuit funding quickly by working with your lawyer(s) to move the process along.
What Else Does My Attorney Have to Do?
In addition to forwarding documents and speaking about the case’s merits, your attorney must also typically sign an “Acknowledgment of Counsel.” In this form, your lawyer acknowledges the sale of part of your recovery and often ensures you understand what you are signing. In fact, we strongly recommend you consult with your attorney about the language contained in the funding contract and before you sign any legal document whatsoever.
How Much Funding is Available?
How much legal funding you will receive depends upon the strength of your lawsuit and the extent of your damages. If you search the pre-settlement funding FAQ page on most funding company websites, you will find that as a general rule, companies offer 10% – 15% of the underlying case value. The company approximates the likely settlement value after all information is considered.
Regardless of how much legal funding is available, we recommend you only take an amount that reflects your immediate needs. Although our lawsuit loan rates are among the lowest in the business, lawsuit loan cost can be expensive. Instead of cashing out for the maximum amount available, simply get the cash you need to pay your expenses while you wait for the case’s conclusion.
What are Typical Lawsuit Loan Rates?
Lawsuit loan rates can be confusing. But they don’t have to be. When plaintiffs shop for lawsuit loans, they might find many company websites fail to mention lawsuit loan rates. Reputable lawsuit loan companies however, will offer this information freely. Many will provide lawsuit loan rate pages discussing not only lawsuit loan rates, but also how the contracts are structured and what other costs may be associated with these transactions.
As a general rule, you can expect to pay 18% every six months for a lawsuit loan. Unlike traditional loans or other lawsuit loan alternatives, the money is not repaid until the case is resolved in your favor and out of the recovery itself.
Low Price Guarantee
To ensure you get the best possible terms, applicants might want to consider a company which offers a lawsuit loan price guarantee. In an effort to obtain more plaintiffs to help, some companies will guarantee the lowest possible terms. Most are written as some variation of:
If we approve your application for a cash advance and another legal funding company sends you a written contract to advance the same amount at a lower total cost, we will beat that deal or pay you $250 guaranteed!
Price guarantees protect the consumer. But they are a win for funding companies as well since in theory, origination costs are minimized by the practice.
If You Have Any Questions, Call 888-964-2224
WE ARE HERE TO HELP YOU!
What Happens If the Case is Lost?
Lawsuit loans are structured as an assignment of property rights in lawsuit proceeds. They are an asset sale, although the value is not yet determined. So if a lawsuit is lost, the lawsuit loan is not repaid since what was purchased has zero value.
Lawsuit funding investments carry some risk of loss. Lawsuit loan pricing reflects this risk. While some lawsuits lose, most don’t. It is the winners that carry the cost of the losing cases.
The bottom line is that if there is no recovery, there is no repayment – period.
How Do I Shop for Lawsuit Loans?
Choosing the right lawsuit funding company may seem daunting. Despite the large amount of players in the market, not all provide stellar service and competitive pricing. It’s easy to get lost in the sea of information.
Fortunately, you’ve landed in the right place because Fair Rate Funding offers:
- The lowest interest rates — guaranteed;
- No hidden fees;
- Clear and concise terms;
- Adherence to Lawsuit Loan Best Practices;
- A quick and easy application process; and
- Live people answering your calls.
How Do I Learn More?
Our lawsuit funding representatives are standing by ready to answer any questions. We are ready to help you get access to the financial support that you need to pay your bills.
Why Choose Fair Rate Funding
You obviously have a choice in who you use for legal funding. We offer:
- Simple and Easy Process – Approval only on strength of your case.
- Risk – Free Proposition – Only repay if you win your case.
- Rapid Approval and Funding – Approvals often within 24 hrs.
- Up Front Pricing – Absolutely no hidden fees.
Give us a call and learn about your options. We are here to help and are at your service.
Thank you for your interest in Fair Rate Funding.
Thank you for your interest in these pre-settlement funding FAQ and lawsuit loans.
