lawsuit loans

June 20, 2024 by Paul Coppola

What do Settlement Loans Cost? The Answer Might Surprise You

Settlement loans, sometimes referred to as legal funding or lawsuit loans are specialty financial transactions where plaintiffs receive a portion of their recovery prior to their cases’ conclusion. So how much do settlement loans cost? In this post, we examine settlement loan cost and what that means for plaintiffs who cannot endure the long, drawn out litigation process.

What are Settlement Loans?

Settlement loans are agreements between plaintiffs and lawsuit “lenders” who advance a portion of a lawsuit recovery in anticipation the case will be resolved successfully. They appeared in response to the financial hardships many plaintiffs face while their cases are litigated. Their purpose is to bridge the gap between the filing of a claim/lawsuit and receipt of compensation.

Because settlement loans are designed as a transfer in property rights in the future proceeds, the lawsuit funding company is only repaid if the case is successful. These deals are non-recourse, meaning the funding company cannot pursue plaintiff personally for repayment. According to most lawsuit funding contracts, the advance must be repaid by the lawsuit proceeds itself.

Lawsuit loans generally cost more than traditional loans. Yet the differences between traditional personal loans and lawsuit loans cannot be overstated because these differences are important factors in determining settlement loan cost. While traditional loans imply repayment at some point in the future, lawsuit loan repayment is contingent upon a successful outcome. This additional risk must be reflected in lawsuit loan pricing.

The other variable is the time it takes for a lawsuit to resolve. This cannot be known in advance, settlement loan cost (repayment) varies according to when the cases conclude and plaintiffs compensated.

The Good News

Loans and lawsuit loan risk differences have an impact upon settlement loan costs, but there is good news. First, plaintiffs can get much needed financial support in a hurry – much shorter than traditional loan processing. Often lawsuit loans are funded on the same day. This is of primary importance since bills must be current else plaintiffs be forced to accept low-ball settlement offers just to keep the lights on.

Because the sole criteria for lawsuit loan approvals is the likelihood of a particular lawsuit’s success, lawsuit funding analysis is only concerned with the facts of case. Similar fact patterns routinely emerge in negligence lawsuits, which are the lawsuit type most litigation funders prefer. This often results in a short wait between the time of application and lawsuit loan approval. Settlement loan approvals are streamlined as funders are aware plaintiffs’ financial affairs need an immediate fix.

Second, lawsuit loans often lead to higher settlements since attorneys are afforded the time needed to endure legal system delays inherent in the judicial process. Allowing lawyers the ability to properly work up cases can lead to higher settlements which is in everyone’s best interests. Lawsuit settlements make sense for all involved parties since trials before a judge and jury are risky propositions.

Finally, the unique nature of settlement loans make them available to almost anyone with a pending claim/lawsuit. Traditional loan factors such as credit scores, employment history, asset verification and the ability to make periodic payments are not factors in the lawsuit funding underwriting process.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Lawsuit Loan Rates and Structure

While a general discussion of settlement loans is important, it does little to answer the settlement loan cost question. Settlement loan cost really comes down to three factors. These are rates, structure and fees. Below we examine these three is a little more detail.

Lawsuit Loan Rates

Discussion regarding settlement loan cost usually revolves around lawsuit loan rates. While the rates lawsuit funders charge have a large impact upon case loan cost, most companies, especially those who base lawsuit loan origination efforts on the internet, offer competitive rates. Typical funding rates range from 18%-25% every six months. That rate is “charged” upon the contract amount and adds to the total repayment every six months until the advance is repaid.

Structure

Rates only tell part of the story however, since the calculation methods can differ. Consider a rate that compounds on the balance. Some lawsuit loan companies still offer compounding rate structures which applies a monthly rate on the previous month’s balance. Since the rate is applied to an increasing balance and not the original contract amount, settlement loan cost can increase more rapidly, especially if the lawsuit takes many years to resolve.

Fortunately, most lawsuit loan companies offer “simple rate” calculations where the rate is applied only to the original amount. Nevertheless, since lawsuit loans remain unregulated in many states, companies are free to pursue their own creative rate structures. Prudent lawsuit loan shoppers can educate themselves on the differences relatively easily through some research and/or a phone call to a reputable lawsuit loan company.

Other Settlement Loan Costs

The last settlement loan cost factor involves charges and fees contained in the contract. It is common practice with most loan products that processing and other fees be charged to clients. Indeed, even car loans and mortgages contain processing, monitoring, origination and other fees. Learning how to shop for a lawsuit loan means learning about all the factors which contribute to what settlement loans cost. Savvy plaintiffs who want to get the best deal can even ask if there is a best price guarantee offered by a particular company.

Finding More Settlement Loan Cost Information

Finding the best deals for settlement loans has never been easier. To learn more about lawsuit loans and how you can qualify for settlement funding, simply pick up the phone and give us a call. You will reach a live representative who can answer all your questions.

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 the 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.

Apply Now

May 15, 2024 by Paul Coppola

Differences Between Personal Loans and Lawsuit Loans

Personal loans and lawsuit loans may serve the same purpose – getting the debtor/seller flush with immediate cash. Yet the mechanisms each uses to accomplish this task vary greatly. In this post, we examine the differences between personal loans and lawsuit loans in greater detail and leave readers to decide which course of action best suits their needs.

Personal Loans Basics

Personal loans are usually installment type loans offered by banks and traditional lenders. These might include savings and loan institutions, credit unions and other lenders. Obtaining personal loans and lawsuit loans both begin with an application and ends with the client getting money. That’s where their similarities typically end. Below is a brief summary on personal loans.

Application and Approval

Applicants complete an application with the lender. This includes information such as personal details, income, employment status, and credit history. The lender reviews the application and conducts a credit check to assess creditworthiness. Credit scores and credit history play a significant role in determining qualification and what terms are offered.

If the lender’s eligibility criteria are met and application approved, an offer is made outlining the loan amount, interest rate, repayment term, and other terms and conditions.

Acceptance and Funding

Once the terms are agreed upon, a loan agreement (promissory note) is executed (signed). Once the documents are signed, the lender disburses the funds either through direct deposit or by check.

Repayment

Personal loans are typically repaid in fixed monthly installments over a predetermined period, which is usually between one and seven years. Each installment consists of a portion of the principal amount borrowed plus interest.

Interest Rates and Fees

Banks decide what rates are available to debtors and vary based on credit score, income, and the lender’s policies. Current personal loan rates range from 7%-30% annually. Additionally, some lenders charge origination fees, late payment fees, or prepayment penalties.

Credit Impact and Uses

Taking out a personal loan impacts your credit score. Making timely payments can help improve your credit score, while missing payments can have a negative impact. Additionally, applying for multiple loans within a short period can result in multiple hard inquiries on your credit report, which can temporarily lower your score.

Personal loans are used for a variety of purposes, including debt consolidation, home improvement, medical expenses, education, living expenses, and more.

Personal loans offer flexibility and can provide quick access to funds for various financial needs. However, there are some limitations so comparing personal loans and lawsuit loans is in order.

Lawsuit Loan Basics

Before we compare personal loans and lawsuit loans, it’s important to understand some lawsuit loan basics.

First, because legal system delays are common throughout the United States, plaintiffs often run in to financial trouble while they wait for their cases to resolve. This is especially true if plaintiffs are unable to work due to accidents (personal injury lawsuits are common lawsuit loan types). The purpose of settlement loans (lawsuit loans) is to allow plaintiffs in civil lawsuits the ability to tap into the value of their potential recovery to pay much needed expenses.

While sometimes referred to as “lawsuit loans” or “settlement loans”, these transactions are not loans in the traditional sense. Instead they are an assignment (sale) of property rights in the lawsuit’s future value, if any.

Obtaining lawsuit loans is easy and straight forward. The elements of the lawsuit loan process is outlined below.

Application and Paper Chase

Plaintiffs will contact a lawsuit funding company to ask how to qualify for lawsuit loans. The company will ask a few preliminary questions and pre-qualify the applicant after the questions are answered. If, upon answering the questions, the company feels they are not interested, the applicant is notified as well. Pre-qualification means a plaintiff likely has a “fundable lawsuit” which warrants further investigation. Pre-qualification ends with plaintiffs completing an application for funding. This starts the process.

The next step is gathering documents that prove the elements of each case. Funding companies reach out to plaintiffs’ lawyers to secure this evidence and approval depends greatly upon the receipt of evidentiary support.

Underwriting and Approval

Once the documents are received, they are sent to underwriters who review them. Their next task is to interview the attorney regarding the details of the case and everyone’s expectations. Afterwards, a final decision is made.

Funding and Repayment

When a lawsuit is approved, a contract is prepared and forwarded to the client and the attorney. Upon execution, the plaintiff receives immediate cash via overnight check or electronic bank transfer.

Lawsuit loan contract terms dictate that repayment comes from the lawsuit proceeds. When a case is resolved, the representing attorney repays the advance on pending case according to the terms of the agreement.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Personal Loans and Lawsuit Loans Compared

Personal loans and lawsuit loans might serve similar purposes, but there are distinct differences. Below we examine some of the most important.

Difference in Purpose

There may not be that much difference between the purpose of personal and lawsuit loans. Personal loans are typically used for personal expenses, such as debt consolidation, home improvement, medical bills, or unexpected expenses. Lawsuit loans provide financial assistance to plaintiffs involved in ongoing legal cases. They are also used to cover living expenses, medical bills, and other costs while awaiting the resolution of a lawsuit.

Use of Collateral

Personal loans can be secured or unsecured. Secured loans require collateral, such as a home or a car, while unsecured loans do not require collateral but may have higher interest rates. Unsecured loans can be credit card debt or other products.

Lawsuit loans advance money on pending cases but the transaction does not consider the lawsuit as collateral. Instead, plaintiffs sell part of their interest in the settlement or recovery. Lawsuit loans are non-recourse, meaning they are not secured by any personal assets. Nor can the funding company pursue the plaintiff personally for repayment. If the case is lost, the plaintiff is not obligated to repay the loan.

Approval Process

Personal loan approvals are based upon the creditworthiness of the borrower. Factors such as credit score, income, assets, employment history, and debt-to-income ratio are often considered. Lawsuit loan approvals are based on the strength of the lawsuit and the likelihood of winning a settlement or judgment. Credit score and income are generally not considered.

Repayment

Personal loans are generally repaid in installments shortly after disbursement. Most of the time the payments are fixed and paid over a specified time frame. Lawsuit loans contracts mandate the advance be repaid only if the case is successful. When a lawsuit is resolved, money is typically deposited in an attorney trust account and disbursed by the attorney. Lawyers are tasked to repay lawsuit loans from these proceeds and at the time of lawsuit settlement disbursement.

Personal Loan and Lawsuit Loan Cost

Personal loans interest rates vary based on factors such as creditworthiness, loan amount, and loan term. There may be origination fees and other charges associated with personal loans. Lawsuit loan rates generally range from 35% to 50% per year and may be more expensive than personal loans. Lawsuit loan pricing reflects the higher risk involved for the lender. Additionally, there may be fees such as application fees, underwriting fees, and servicing fees.

Personal Loan and Lawsuit Loan Regulation

Personal loans are highly regulated by consumer protection laws and overseen by government agencies to ensure fair lending practices. Lawsuit loans are unregulated in many states. Others regulate the practice. There is ongoing debate about the need for lawsuit loan regulation to protect the public from predatory pricing in the industry.

Discussion Takeaways

While both personal loans and lawsuit loans provide financial assistance, they cater to different needs, have different approval processes, repayment terms, and regulatory environments.

At Fair Rate Funding, we operate in the specialty niche of settlement funding. We act as plaintiff advocates by supporting plaintiffs through the litigation process. Although the financial world consists of many complicated and technical products and services, lawsuit loans don’t need to be confusing. They are simply an advanced sale of a future asset – lawsuit proceeds. They are essentially the same as the sale of any personal property.

If you have any questions regarding personal loans and lawsuit loans, we are here to help. Give us a call or contact us online. You will speak to a live representative who can field all your questions.

Thank you for your interest in lawsuit funding.

Apply Now

March 6, 2024 by Paul Coppola

Multiple Lawsuit Loans Are Often Needed

If you’ve already received an advance on your case, it is likely you will be eligible for additional funding. Of course, how much depends upon the specifics of your case. In this post, we examine the use of multiple lawsuit loans and how to go about getting multiple lawsuit loans on your case.

What are Lawsuit Loans?

A pre-settlement loan, also known as a lawsuit loan, legal funding or settlement funding is a special type of financial support for plaintiffs involved in pending litigation. Pre-settlement loans are not technically loans but rather cash advances against pending lawsuits.

These transactions are designed as an assignment of property rights in the future proceeds of a case. Because of this, lawsuit loans are not repaid if the underlying lawsuit is not successful. Thus, they are often referred to as “non-recourse” financing and a risk-free way for litigants to access much needed cash.

How Lawsuit Loans are Used

Lawsuit loans are used as a financial lifeline for plaintiffs who encounter financial strain during the litigation process. Delays in lawsuit justice are a feature in a system which tries to balance the ability of citizens to resolve disputes and the costs to administer justice.

The most popular lawsuit loans are personal injury loans – advances to injured plaintiffs who are sometimes unable to work due to injuries. Lawsuits take time to resolve. Many plaintiffs must wait years to receive compensation. Settlement loans are commonly used to pay for:

Rent or housing
Groceries
Utilities and other living expenses
School Tuition
Transportation Costs
Business or Investment Opportunities
Medical Treatment
Surgeries
and more . . .

Although most plaintiffs use the money as described above, there are no restrictions on the use of lawsuit loans. Any uses are acceptable, if decided upon by the plaintiffs themselves.

Why Use Multiple Lawsuit Loans?

In many instances, plaintiffs require multiple lawsuit loans. Can plaintiffs get multiple settlement loans? They absolutely can and for a variety of reasons. Two of the more common reasons why plaintiffs get more than one lawsuit loans are:

Need More Money

Finances can be tricky and what is needed at one moment can change quickly. For this reason, plaintiffs who need more money can and do apply for multiple lawsuit loans. These can be structured as one-time advances or done on a periodic basis.

Monthly Expenses

In many instances, plaintiffs are unable to earn the same amount of money as before their lawsuit commences. Many are unable to meet monthly expenses and are forced to look for liquidity solutions to bridge the gap. In these cases, multiple lawsuit loans can be set up as monthly stipends (i.e. monthly payments made to cover monthly expenses).

Multiple lawsuit loans provide plaintiffs with the ability to endure a sometimes long and drawn out litigation process. Even better news is that there is extreme flexibility for plaintiffs to access cash from their lawsuit. Lawsuit funding is a largely unregulated marketplace. Thus, lawsuit “lenders” can be creative in their efforts to solve plaintiffs’ cash flow problems and turn a profit themselves.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

What Makes More than One Lawsuit Loan Possible?

There are two questions which must be answered in order to qualify for multiple lawsuit loans. The first is, how much is available to advance on a particular case? A general rule is ten percent (10%) of the estimated lawsuit value. This figure is an industry standard and only a general rule of thumb. It is designed to offer the support each plaintiff needs but also allow the plaintiff to receive a meaningful amount of money from the remaining settlement, even after repayment of the advance, legal fees, and other costs are considered.

The second question is, how much is each lawsuit worth? And that answer depends upon the facts of each particular case. The question is answered by lawsuit funding underwriters who are legal professionals and in the business of analyzing risk in common lawsuit types. They tend to be conservative in their estimates but the art of underwriting is very subjective.

Qualification for multiple lawsuit loans involves analyzing:

The likely settlement value
The expected duration of the case
Available insurance coverage
Amount of damages caused
The likelihood of success

Based upon this analysis, underwriters will set a ceiling on the maximum amount of funding available as the lawsuit is situated at the time. As long as the request for multiple lawsuit advances and/or lawsuit loan buyouts are at or below this threshold, the funder will likely approve the request.

How to Apply

The process of obtaining a pre-settlement loan is simple.

Fill out the Quick Application on this web page or call us at 888-964-2224.
We contact you shortly to discuss your case.
Once you are pre-qualified, we discuss your case with your attorney.
If your case is approved for cash advance, we prepare a document for your signature.
Once executed, you are funded via overnight courier or EFT (electronic funds transfer).

Final Thoughts

Lawsuit loans are useful tools for plaintiffs in need of financial support during the litigation process. Lawsuit funding is flexible and this flexibility allows the best lawsuit funding companies to be creative in the financial solutions they offer clients. Multiple lawsuit loans are one such solution.

Thank you for your interest in Fair Rate Funding.

Apply Now

February 29, 2024 by Paul Coppola

Frivolous Lawsuits – Costs and System Safeguards

Lawsuits are a fundamental aspect of the legal system, serving as a mechanism for resolving disputes and ensuring justice. However, within the system is the ability of claimants/plaintiffs to initiate proceedings often referred to as frivolous lawsuits – legal actions which lack merit, are filed primarily to harass, intimidate, or extort defendants rather than to seek legitimate justice.

While frivolous lawsuits can capture public attention and spark outrage, a deeper look into their implications is in order. In this post, we delve deeper into frivolous lawsuits and their implications on society and also relate them to lawsuit funding.

The Cost of Frivolous Lawsuits

Frivolous lawsuits come with significant costs, not only for the parties directly involved but also for the legal system and its participants. Since the civil justice system is primarily publicly funded, these costs are a drag on society as a whole and manifest in various ways:

Financial Burden

Frivolous lawsuits impose a substantial financial burden on defendants who bear the costs of legal defense, potentially draining resources which can be allocated elsewhere. These additional costs must be borne by someone and are normally passed on to the end users of products and services.

Waste of Judicial Resources

Frivolous cases divert valuable resources away from legitimate legal matters before the court. This backlog creates legal system delays and impacts timely justice for real claimants. In many jurisdictions, plaintiffs must wait many months or even years before their cases are resolved. Of course, these delays are not solely caused by frivolous lawsuits but a lack of allocated resources to a crowded civil docket. Frivolous cases only add to an existing problem.

Impact on Reputation

Defendants targeted by frivolous lawsuits may suffer reputational damage, regardless of a case’s merit. Even if lawsuits are ultimately resolved in defendants’ favor, damage to their reputations can endure.

Chilling Effect

Frivolous lawsuits can discourage innovation and entrepreneurship. Fear of litigation may deter individuals and businesses from engaging in activities that could potentially attract legal scrutiny, stifling economic growth and creativity.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Safeguards Against Frivolous Lawsuits in the Legal System

Despite the challenges posed by frivolous lawsuits, the legal system incorporates several safeguards to mitigate their impact and ensure the fair and efficient administration of justice. These include:

Rule 11 Sanctions

In the United States federal courts, Rule 11 of the Federal Rules of Civil Procedure empowers judges to impose sanctions on parties or attorneys who file frivolous lawsuits or pleadings. These sanctions may include monetary penalties or disciplinary actions.

Attorney Oversight

Legal professional bodies (bar associations) regulate the conduct of attorneys and impose ethical obligations to discourage the filing of frivolous lawsuits. Attorneys found to engage in unethical behavior, including the pursuit of meritless claims, risk disciplinary measures, including suspension or disbarment.

Summary Judgment

Courts have the authority to grant summary judgment in cases where there is no genuine issue of material fact, effectively disposing of frivolous claims at an early stage of litigation without the need for a trial.

Cost Recovery

In some jurisdictions, defendants who successfully defend against frivolous lawsuits may be entitled to recover their attorney fees and litigation costs from the plaintiff, serving as a deterrent against baseless litigation.

Judicial Discretion over Frivolous Lawsuits

Judges possess discretion to dismiss frivolous lawsuits, impose sanctions, and manage cases efficiently to uphold the integrity of the legal process.

Business Costs

Plaintiff attorneys on contingency fee retainers often front the costs of pursuing a claim for their clients. Frivolous lawsuits represent a business loss for these firms so they are unlikely pursued for business reasons.

Frivolous Lawsuits and Legal Funding

One common critique of the legal funding industry is that the practice encourages litigation of matters which would ordinarily be resolved without it. Critics predict that frivolous lawsuits increase when litigants can find investors to cover litigation costs (commercial litigation and/or mass torts). They argue that lawsuits continue too long if parties do not face economic pressure to resolve the case before trial.

If legal funding cash advances on pending lawsuits were available to anyone and everyone, perhaps their argument would have merit. Their arguments fail however, since these criticisms assume lawsuit loans (legal funding) are available to all litigants.

In reality, more goes into lawsuit loan approvals than just being a named plaintiff on a filed complaint. Lawsuit funding companies go through the lawsuit loan process and painstaking underwriting in order to identify “fundable” lawsuits. And a fundable lawsuit means a case with a strong likelihood of success since cash advances on pending lawsuits are not repaid if cases are lost. The non-recourse nature of these transactions means that legal funding capital flows to the best lawsuits, not frivolous ones.

Conclusion

Frivolous lawsuits represent a challenge within the legal landscape, with significant costs and implications for all stakeholders involved. However, the legal system incorporates various safeguards to address these challenges, promoting fairness, efficiency, and the pursuit of legitimate justice.

By upholding ethical standards, exercising judicial discretion, and imposing consequences for misconduct, the legal framework endeavors to strike a balance between access to justice and the prevention of abuse. Ultimately, fostering a culture of responsibility and accountability among litigants and legal practitioners is essential to safeguarding the integrity of the legal system and preserving public trust in the pursuit of justice.

Thank you for your interest in lawsuit funding.

Apply Now

February 26, 2024 by Paul Coppola

Delays in Legal System Give Rise to Lawsuit Funding

Sometimes it is appropriate to get down to basics when analyzing an issue. Although we’ve written extensively about the pre settlement funding business and how the market players are filling an existing need, what is rarely discussed is why there is a need in the first place. In this post, we uncover that legal system delays are the origin of lawsuit funding.

The legal system is not perfect. Like all systems, certain problems arise. The good news is that in a free society, market participants can remedy these problems.

Lawsuit delays are a result of limited resources in resolving disputes between parties. They are just one flaw within the legal system. Lawsuit funding seeks to remedy the effects of legal system delays.

In This Post

Delays in Legal System Give Rise to Lawsuit Funding
Legal System Does What it Intends
Speedy Justice
Lawsuit Funding Responds

Legal System Does What it Intends

No one would deny that a legal system designed to resolve civil disputes is a good thing. The alternative might be people taking into their own hands the means to resolve these disagreements. One can easily envision violent altercations as the ultimate form of dispute resolution. In a civilized society, the courts offer parties to a civil dispute an opportunity to resolve it without bloodshed.

Further, a legal system which utilizes well documented regulations and historical precedent builds a foundation to resolve all future disputes in a more equitable fashion. With this foundation, those who make their living navigating the legal system (i.e. lawyers) can learn those standards and help others with this expertise.

The problem with the legal system has never been its inability to resolve conflict. In fact, many, MANY, rules and regulations are in place specifically to deal with potential conflicts and other pitfalls in the process. Most of the time, these were implemented because of the existence of past problems. Ultimately, the system reaches its intended destination – justice.

Speedy Justice

One often cited legal system flaw however, is the speed in which justice is served. While many small disputes can be adjudicated in only a couple of months, the vast majority of cases will not reach their final conclusion for many months and more often than not, years.

Of course, the time it takes from complaint to settlement varies from venue to venue and from case to case. Factors such as the type of case, amount of other cases on the docket, discovery, lining up witness and expert testimony, and coordinating attorney calendars can all contribute to delays in the legal system.

Are Legal System Delays Really Flaws?

Legal system delays are not necessarily a bad thing since many people make a living providing legal services to the public. Certainly the speed of the civil justice system could be increased, but at what cost? Are more judges, clerks, registrars, courthouses, lawyers really what we need? Taxes and borrowing must pay for it. Do we need more of those?

This delay also adds an added benefit of filtering out frivolous lawsuits and/or petty claims because it simply may not be worth the effort for parties to use the system. If too much effort is required, plaintiffs might not be willing to pay the price, especially if the potential reward is limited.

Lawsuit Delays May Cause Problems

For the majority of participants, the legal system in the United States operates as intended. All citizens are allowed access to the courts to rule on disputes between parties. It may take some time, but ultimately the matters are resolved.

For others however, legal system delays are significant flaws and can pose real problems. For example, personal injury plaintiffs, who are unable to work due to injuries, often encounter severe financial distress while they wait out the judicial process. In this situation, any delay in justice can be financially burdensome and uncomfortable.

For years, plaintiffs met this financial stress in traditional ways like taking loans from family members, selling of existing property, credit card cash advances, etc. In the last couple of decades, settlement funding emerged to meet the needs of these individuals.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Lawsuit Funding Responds

The lawsuit funding business, which provides liquidity to plaintiffs prior to settlement or recovery, attempts to fill the need of plaintiffs who cannot meet their expenses while they wait out legal system delays. The practice gained momentum in the late 2000’s and is now a legitimate part of the civil litigation landscape.

What are Lawsuit Loans?

Lawsuit loans are financial deals that address the ramifications of legal system delays. They occur when a plaintiff pledges a portion of the future recovery on a pending lawsuit in return for a lump sum amount of cash from a lawsuit lender. Lawsuit loans bridge the financial gap between initiating a lawsuit and its ultimate resolution. They attempt to level the financial playing field between individual plaintiffs and large insurance companies who defend civil actions in court.

How are Lawsuit Loans Different?

Traditional loans imply repayment at some point in the future. Lawsuit loans are not loans in the traditional sense because repayment is dependent upon a successful outcome. That is, if the lawsuit fails, the lawsuit cash advance is not repaid.

Lawsuit funding contract terms dictate that repayment is to be made from lawsuit proceeds only. For this reason, lawsuit lenders cannot pursue plaintiffs personally for repayment. Lawsuit loans are appropriately deemed “non-recourse” funding.

How are They Used?

Medical treatment and surgery loans
Living expenses
Housing
Transportation
Past debts
School tuition
and more . . .

How the Process Works

Before considering non-recourse legal funding, we advise that clients speak with their trusted personal injury attorney to weigh out all of their options.

APPLY ONLINE – The lawsuit loan application process is brief and straightforward. Simply fill out our brief online application or give us a call to get started.
CASE REVIEW – We’ve been in the lawsuit funding business for over 15 years and have decades of legal experience. We need only a few minutes with your attorney to evaluate a case for lawsuit loan approval.
RECEIVE FUNDS – Once approved, a contract is executed and money is sent via overnight check or electronic bank transfer.

Legal Funding and Legal System Delays

As stated above, legal system delays are inherent in the judicial process and are unavoidable. Their effects however, can be minimized in certain circumstances utilizing the power of lawsuit loans. If you are struggling financially due to delays in justice, you may have more options than you realize. If you have any questions regarding legal funding and your lawsuit, reach out to us at 888-964-2224 and speak to a live representative. We are at your service and here to help.

Thank you for your interest in Fair Rate Funding.

Apply Now

February 21, 2024 by Paul Coppola

How to Get Settlement Money Early

If you are involved in civil litigation and are encountering financial strain, you may wonder if it’s possible to get settlement money early. In this post, we explain how to use lawsuit loans to get a portion of your settlement money early – prior to actually resolving your case.

What are Lawsuit Loans?

Lawsuit loans are specialty financial transactions where lawsuit lenders advance money on pending cases. Lawsuit loans are also known as settlement funding, legal funding, settlement loans, case loans and lawsuit funding.

Lawsuit Loans are Not Loans

Although the word “loan” is contained in some phrases describing these transactions, lawsuit loans are most definitely NOT loans in the traditional sense of the word. Traditional loans imply repayment at some point in the future. Lawsuit funding however allows you to get settlement money early by advancing cash in anticipation of settlement or recovery. Repayment is contingent upon a successful outcome.

This means lawsuit loans are risk free to plaintiffs who wish to get some of their settlement money early to the extent that repayment is made with the lawsuit proceeds themselves, not the plaintiff personally. Accordingly, lawsuit funding contracts are deemed “non-recourse” early advances on lawsuits.

Why You Might Need Settlement Money Early

Lawsuits take time and sometimes years may pass between the time a plaintiff is wronged in the eyes of the law and some sort of monetary recovery. There are many reasons why lawsuits take so long.

For example, a personal injury case might be forced to continue medical treatment or even surgery. Healing from injury adds to the litigation process because often, it is impossible to gauge the permanency and severity of an injury until all treatment options are exhausted.

While treating, plaintiffs are often not able to earn as much money as before their accidents. This adds stress to an already stressful situation leaving many plaintiffs susceptible to low-ball settlement offer tactics used by insurance companies to minimize the amount of compensation plaintiffs receive for their troubles.

How Pre-Settlement Funding Can Help

Lawsuit loans are an effective way to get settlement money early and resolve short-term cash flow issues that plaintiffs potentially face. Traditional bank loans involve lengthy credit checks and sometimes pledging collateral. Lawsuit loans involve no credit checks and no need to prove your income or employment status. Lawsuit loan companies rely solely on the strength of your case and how much you’ll likely receive when it’s over.

Even better, you can use lawsuit loans for any expense whatsoever. Many clients use early settlement money to pay for:

Medical treatment or surgeries
Living expenses
School tuition or education payments
Housing costs such as rent or mortgage payments
Consolidating existing debt
Transportation costs
Business expenses, and
other uses for lawsuit loans

Pre-settlement funding is a financial lifeline for plaintiffs, enabling them to cover their costs while waiting out the legal process. Getting settlement money early through lawsuit loans avoids the credit and employment issues which normally face traditional borrowers.

If You Have Any Questions – Call 888-964-2224

Complete a Free Application Form Now

How Legal Funding Works to Get Settlement Money Early

The legal funding process works as follows:

Plaintiff contacts lawsuit funder and gives some details about the lawsuit. This will include:
- Plaintiffs name, address and contact information
- Attorney’s name and contact information
- Date of accident/incident
- Amount of money needed early
- Whether plaintiff has received funding previously
Lawsuit lender chases paperwork from client and/or attorney and builds a file to send to a lawsuit funding underwriter.
Underwriter contacts attorney to discuss the case.
Decision is made and if approved, an offer for funding is presented to the plaintiff.
Plaintiff and attorney agree, execute and return the lawsuit funding contract.
Plaintiff receives funds via bank transfer or overnight delivery of a check.

The Costs for Getting Settlement Money Early

As stated above, legal funding contracts are only repaid if the lawsuit is successful. These are asset purchase agreements in which plaintiffs sell a portion of their settlement ahead of time. If the case should lose, what was purchased (settlement proceeds) is worthless. Thus, there is no repayment. That’s the good news.

The bad news is funding companies must charge for this additional risk of loss. Thus plaintiffs can expect to pay approximately 36% or more per year for cash advances on pending lawsuits.

And there is more good news – it’s never been easier to shop for lawsuit loans since information on lawsuit funding rates is plentiful on the internet if you take the time to look. Information on the types of lawsuit loan pricing structures (compounding vs. simple) and legal loan fees can be found all online. It might be wise to examine these types of costs and make a determination on which is the best fit for your personal situation.

Pros and Cons of Lawsuit Loans

Legal Funding: Pros

You get money in as little as 12-24 hours.
You can use the money however you wish.
You can refuse low-ball settlement offers and allow your attorney(s) to negotiate a better settlement.

Lawsuit Loans: Cons

Lawsuit loans can be costly – especially if a plaintiff doesn’t do his/her homework.
Not all cases qualify for lawsuit funding.
- Although many lawsuit loan case types exist, many more simply do not fit within the investment wishes of lawsuit “lenders”. These might include:
  - Social security cases
  - Divorces
  - Some workers’ compensation cases
  - Trust and Estate disputes
  - You are Pro Se (aren’t represented by counsel)
  - Your attorney is not representing you on a contingency fee basis.
  - and more. . .

Do You Need to Get Settlement Money Early

Above we discuss the benefits and drawbacks of getting settlement money early through lawsuit loans. Now you are in a better position to see if lawsuit loans are right for you. If you have any questions or want to know if you qualify, simply pick up the phone and give us a call. You’ll reach a live person during business hours who can answer your questions.

Or you can contact us online for more information. Fortunately, choosing the best lawsuit loan company is well within the reach of every plaintiff. Give us a call. We are here to help and are at your service.

Thank you for your interest in Fair Rate Funding.

Apply Now

January 25, 2024 by Paul Coppola

Attorneys Use the Power of Lawsuit Loans to Help Their Practices

Personal injury law is a unique specialty in the realm of civil litigation. Navigating through lengthy legal battles can be financially challenging for both lawyers and their clients. Savvy injury attorneys use the power of lawsuit loans to their advantage. These specialty financial products are a valuable financial tool for attorneys to support their practices while ensuring that their clients receive fair compensation. In this post, we explore how the power of lawsuit loans can benefit lawyers in personal injury practices.

Understanding Lawsuit Loans

Lawsuits take time to resolve. There are plenty of reasons why. As a result, personal injury lawyers are often asked for money by their injured clients. This is understandable since a large number of injury plaintiffs cannot work due to their injuries. Unfortunately, state ethics rules often prohibit the practice of advancing money to plaintiffs in anticipation of settlement. One large reason behind this policy is to discourage attorneys from paying for clients.

Although policy reasons might make sense, they do nothing to help injured plaintiffs who desperately need to find a way to keep their expenses paid. Lawsuit loans are designed to fill this need.

Lawsuit loans are monetary advances to personal injury and other plaintiffs prior to settlement. Lawsuit loans are different from traditional loans. They are non-recourse, meaning that plaintiffs only repay if their cases are successful. This unique feature makes lawsuit loans a low-risk option for clients and consequently, a powerful resource for lawyers looking to support their clients throughout the litigation process.

Lawyers Utilize the Power of Lawsuit Loans

Lawsuit loans offer a multitude of benefits to personal injury and other civil litigation attorneys. Some of these are listed below:

Financial Stability

Personal injury cases can take months or even years to reach a resolution. During this time, plaintiffs may face financial strain as they wait out the legal process. Lawsuit loans offer the power to refuse low-ball settlement offers by offering plaintiffs a financial lifeline to keep expenses current.

Further, through case-cost financing, lawsuit lenders can help attorneys directly by advancing immediate cash to law firms to cover operating expenses, such as office rent, staff salaries, and case-related costs.

Client Retention and Satisfaction

When clients are facing financial difficulties due to medical expenses, lost wages, or other financial burdens, savvy lawyers counsel clients on how to shop for a good lawsuit loan company. This not only eases the financial burden on clients but also strengthens the attorney-client relationship, potentially leading to higher client satisfaction, loyalty, and potentially future referral business.

Leveling the Playing Field

In personal injury cases, defendants often have the advantage of deeper pockets and resources. Lawsuit loans level the playing field between financially strong insurance companies and individual plaintiffs. The power of lawsuit loans rests with the financial means to endure a sometimes long, drawn out process. This can lead to stronger negotiations and, in some cases, encourage defendants to settle on more favorable terms.

Access to Experts and Resources

Building a strong personal injury case often requires expert testimony from a variety of professionals. These might include: medical professionals, accident reconstruction specialists, and others. Lawsuit loans often enable lawyers to access these resources without compromising the quality of their representation. This can significantly enhance the strength of the case and increase the likelihood of a favorable outcome.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Attorneys Use the Power to their Clients’ Benefit

With the power of lawsuit loans, lawyers can focus on building a solid case without the pressure of immediate financial concerns. This can lead to a more thorough and effective legal strategy, potentially expediting the case resolution process.

Lawsuit loans are a valuable asset for lawyers in personal injury practices, offering financial stability, client satisfaction, and enhanced resources. By understanding and incorporating lawsuit loans into their practice management, attorneys can navigate the complexities of personal injury litigation with confidence, ultimately achieving better outcomes for themselves and their clients.

Thank you for your interest in Fair Rate Funding.

Apply Now

January 8, 2024 by Paul Coppola

Why Choose Fair Rate Funding for Lawsuit Loans?

When facing the financial strain of a legal battle, plaintiffs often find themselves in need of immediate funds to cover living expenses, medical bills, or other pressing financial obligations. Many plaintiffs choose Fair Rate Funding for lawsuit loans as they are a lifeline during challenging times, providing financial support until a case reaches its resolution.

Among the multitude of options available, Fair Rate Funding stands out as a reputable and reliable choice for plaintiffs seeking lawsuit loans. In this post, we explore why choosing Fair Rate Funding is the best idea for those navigating the complexities of litigation.

Choose Fair Rate Funding for Transparency

As the name suggests, Fair Rate Funding is committed to providing plaintiffs with transparent and fair lawsuit loan rates. Transparency is crucial when it comes to lawsuit loans, as it ensures that plaintiffs understand the terms of the agreement and are not blindsided by hidden fees or exorbitant costs. Fair Rate Funding prides itself on its commitment to fairness, ensuring that plaintiffs receive a clear and straightforward breakdown of the costs associated with their lawsuit loans.

Quick and Hassle-Free Process

Time is often of the essence for plaintiffs in need of financial assistance. Fair Rate Funding recognizes the urgency of the situation and streamlines its application process to be quick and hassle-free. With a simple online application, plaintiffs can submit their information and receive a prompt response.

In the alternative, you can call now and reach a live body. We understand dealing with phone systems can be frustrating. We are old school in that we actually answer the phones! This way you can ask questions and make the most of your inquiry. Efficiency is what sets Fair Rate Funding apart. We provide much-needed financial relief without unnecessary delays.

No Repayment if You Lose

One of the unique advantages offered by choosing Fair Rate Funding is the non-recourse nature of its lawsuit loans. In the unfortunate event that a plaintiff loses their case, they are not obligated to repay the loan. This feature provides a crucial safety net for individuals who may be hesitant about taking on additional financial burdens during an already stressful time. Our commitment to sharing the risk of loss with our clients underscores our dedication to client-focused practices.

Customized Funding Solutions

Every legal case is unique. We understand one size does not fit all when it comes to lawsuit loans. We work closely with plaintiffs to tailor funding solutions that align with the specific needs of each situation. Whether a plaintiff requires a lump sum payment or periodic disbursements, Fair Rate Funding is flexible in accommodating individual circumstances.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Ethical Practices and Consumer Advocacy

Fair Rate Funding is not just a financial service provider. We are plaintiff advocates – committed to treating plaintiffs with respect and empathy while recognizing the challenges they face. This commitment to ethical behavior has earned Fair Rate Funding a reputation for integrity within the legal funding industry.

Fair Rate Funding – Choose Us for Lawsuit Loans

Choosing the right provider for a lawsuit loan is a critical decision for plaintiffs seeking financial support during legal proceedings. Fair Rate Funding’s commitment to transparent rates, a quick lawsuit loan process, non-recourse funding, customized solutions, and ethical practices positions it as a trustworthy and dependable choice. When facing the financial strains of litigation, plaintiffs continually turn to Fair Rate Funding for assistance.

Thank you for choosing Fair Rate Funding lawsuit loans.

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December 6, 2023 by Paul Coppola

A Guide to Securing Surgical Care with Lawsuit Loans

Facing the need for surgical treatment can be a challenging and often urgent situation. In some cases, individuals find themselves in a position where they lack the financial means to undergo necessary surgeries. This is where surgery lawsuit funding can play a crucial role, providing a viable solution for those seeking medical interventions but facing financial constraints. In this article, we’ll explore how individuals can use surgery loans to access the surgical treatment they require.

Understanding Lawsuit Loans

Lawsuit loans, also known as pre-settlement funding, are financial advances provided to plaintiffs in anticipation of a legal settlement or court judgment. Lawsuit loans are not traditional loans, but rather a non-recourse advance, meaning repayment is contingent upon the success of the lawsuit. If the case is not successful, the lawsuit loan is not repaid. Because of this, there are no restrictions on the use of the funds.

One of the many settlement loan benefits is using the advance to pay for much needed medical treatment. Although many car accident cases involve no-fault insurance coverage which pays for necessary medical care, many states or types of personal injury cases have no such coverage in place. If no coverage exists, and/or a medical provider who will accept a letter of protection cannot be found, surgical lawsuit loans are one available solution.

Again, the unique nature of these specialty financial instruments means they require no out of pocket payments. Instead, the advance is repaid only when the case reaches a successful resolution. Thus, no co-payment or any other payment is required at the time of treatment. Because of this, plaintiffs who are in financial trouble turn to surgical lawsuit loans in their time of need.

Steps to Get Surgery Loans

Consult with Your Attorney: The first step in utilizing a lawsuit loan for surgical treatment is to consult with your attorney. Your attorney can provide information about the strength of your case and guide you through the process of obtaining pre-settlement funding.
Choose a Reputable Lender: Research and choose a reputable lawsuit loan provider. Look for lenders with transparent terms, fair lawsuit loan rates, and a track record of ethical lending practices. It’s essential to understand the terms and conditions of the loan before proceeding.
Assess Your Medical Needs: Work closely with your healthcare provider to assess your medical needs and determine the estimated costs of the required surgical treatment. Having a clear understanding of the financial requirements will help you determine the amount of funding necessary.
Apply for Lawsuit Loan: Once you’ve identified a suitable lender and have an estimate of your medical expenses, you can apply for a lawsuit loan. The lawsuit loan application process typically involves providing information about your case, legal representation, and the anticipated settlement.
Approval and Funding: Upon approval, the lender will provide the agreed-upon funds. These funds can then be used to cover medical expenses, including surgical procedures, hospital stays, and related costs.
Focus on Your Health: With the financial support from the lawsuit loan, you can now prioritize your health and undergo the necessary surgical treatment. This allows you to address your medical needs without the burden of immediate out-of-pocket expenses.
Monitor Your Case: Keep in touch with your attorney and monitor the progress of your lawsuit. As your case moves forward, any settlement or judgment will be used to repay the lawsuit loan.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

Surgery Loans Help Plaintiffs

Lawsuit loans can be a lifeline for individuals facing the need for surgical treatment but lacking the financial means to proceed. By carefully navigating the process, consulting with legal professionals, and choosing a reputable lender, individuals can access the funds needed to prioritize their health and well-being. It’s crucial to approach this financial solution with a clear understanding of the terms and a commitment to utilizing the funds responsibly for medical purposes.

How to Apply for Surgical Funding?

To apply for surgery loans, simply complete our submission form or click the APPLY NOW button at the top or bottom of this page. The simplest way to get started is to call us now at 888-964-2224 and speak to one of our representatives directly. Our agents are always available and at your service.

Thank you for your interest in surgery loans from Fair Rate Funding.

Apply Now

November 15, 2023 by Paul Coppola

Taking a Look at NJ Lawsuit Funding Companies

New Jersey is a densely populated state. It should come as no surprise then, that accidents happen frequently. These accidents often result in injuries which can lead to lawsuits seeking compensation. New Jersey lawsuit funding companies help plaintiffs.

Not only injury lawsuits arise from increased human interaction however. New Jersey courts hear a wide variety of civil disputes such as legal malpractice, wrongful termination, discrimination and other causes of action.

Large amount of citizens lead to numerous legal disputes. As court systems only have limited resources available to resolve these disputes, many litigants find themselves in need of financial support while they wait for their cases’ resolutions.

New Jersey lawsuit funding companies cater to plaintiffs who need cash now, prior to settling their lawsuits. In this post, we examine the top 5 lawsuit funding companies in New Jersey.

#1 – Fair Rate Funding

Obviously, we are biased but ranking Fair Rate Funding number one is not without support. First, we are headquartered “down the shore” in Manasquan, New Jersey and have been in business since 2007. We are legal professionals who have decades of civil litigation experience. Simply put, we understand what plaintiffs and lawyers face and design our solutions to meet these needs.

Second, our lawsuit loan rates are among the lowest in the industry for preferred cases offering significant savings over our competitors. With a non-compounding price structure, Fair Rate Funding lawsuit loans offer plaintiffs easy access to financial support they need, while keeping the total lawsuit loan cost down to manageable levels.

To find out more about what Fair Rate Funding can provide, give us a call or contact us online. We are at your service and here to help. Call us now, you’ll get a live person on the phone who can answer all of your questions.

#2 Legal-Bay

Legal Bay is a lawsuit funding company based in Caldwell, New Jersey. Caldwell is located in Essex County, one of the most populated areas in the state. According to their website, Legal-Bay provides the “fastest pre-settlement lawsuit funding approvals in the industry. Less than 24 hours in some cases.” While this claim may be accurate, it is also accurate to state that most lawsuit funding companies will gladly do the same, provided all the pieces of the lawsuit loan process fall into place.

Legal-Bay specializes in all types of lawsuit funding, especially attorney loans and surgical funding and offers a free screening to plaintiffs to see if they qualify. Legal Bay reviews on Google are mostly positive thus placing Legal Bay funding second on this list.

#3 Triumph Legal Funding

Also located in Essex County, in Fairfield Township, New Jersey is Triumph Legal Funding. Triumph began in 2017 making it a relatively new lawsuit funding company. However, many lawsuit funding professionals possess many years of experience before venturing out on their own.

Triumph boasts an A+ rating at the Better Business Bureau and has been accredited since early in 2022. Triumph specializes in all types of civil litigation funding, especially focused upon Jones Act lawsuit loans.

If You Have Any Questions, Call 888-964-2224

WE ARE HERE TO HELP YOU!

#4 Tribeca Lawsuit Loans

Tribeca Lawsuit Loans is an industry leader in the lawsuit funding space and has several offices throughout the country. Tribeca has offices in Verona, New Jersey, a suburban area, approximately 13 miles west of Manhattan. Yet, most companies are able to provide legal funding services in multiple states. Tribeca also has an enormous online presence, making them a popular choice not only in New Jersey, but also nationwide.

Tribeca reviews are many and over 80% of their reviews are 5-star according to their Tribeca’s Trustpilot page. Because of these reviews and their online presence, this company makes #4 on the list.

#5 US Claims

US Claims, began in the Philadelphia suburbs of southwestern New Jersey and began in the late 1990’s. This makes US Claims one of the pioneers of the lawsuit funding industry. Like all the companies on this list, US Claims has excellent online reviews and professional service.

Some reasons why plaintiffs choose US Claims is the speed in which their applications are reviewed, the non-compounding nature of their lawsuit loan rates and their capping of total charges at 200% of the contract amount. Truth be told, almost all experienced lawsuit funding companies offer similar terms yet US Claims remains a leader in the business.

Who is the Best Lawsuit Funder in New Jersey?

Obviously, we feel Fair Rate Funding is the best lawsuit funding company in the land. Although we are the top lawsuit loan company located in New Jersey, we do more than just specialize in New Jersey lawsuit loans. We provide fast, low-cost, lawsuit loans in a variety of eligible states throughout the United States.

Fair Rate Funding is an old school specialty finance company. Our money spends like the rest, but our service is second to none and offered with a personal touch. Call us and speak to a live representative, not an automated phone system. We are here to answer your questions and are at your service.

Thank you for your interest in the top 5 lawsuit funding companies in New Jersey.

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