How To Choose The Right Company for Lawsuit Funding
February 23, 2019
If you have filed a lawsuit and you are in need of cash, lawsuit funding may be a good option for you. Contrary to popular belief, this is not a loan as incase you lose the case you don’t have to pay back the cash. It is also a better option than taking a loan as it does not require your credit score, employment verification, there are no periodical payments, no spending restrictions. The only main difference is that it may come with a higher price tag because if you lose the lawsuit it means the company will suffer losses. All in all, it is important to keep in mind that there are many companies that are offering lawsuit funding hence you need to have the right tips in order to make the right choice. Some of the things to keep in mind include:
Understand what is at stake
Before you seek for lawsuit
funding, it is good to first understand what it entails. Get to understand how
it works and all the nitty gritty. Of course, you would not want to get into
something you don’t understand well.
Explore your options
Before setting on lawsuit funding,
you definitely have other options. It is good to explore them so that you are
sure you are making the right decision. Truth is law suit funding can really be
expensive in as much as if you lose the case you are not obliged to pay. Other
options you should not skip is asking for contributions from family and friends,
and insurance especially if you are not in the best financial shape.
Choose an Alfa member
Of course, there are many
considerations to make when looking for a company such as price, its closing
time, how a company compounds interest among many other things. As much as all
those are important, you should not skip a company that is associated with
Trade association in the industry which if you are in the United stated a company
associated with ALFA (American Legal Finance association). The association has
laws that is in favor of the borrower. It has made laws governing the lending
amounts, disclosure requirements and conflicts of interest among many others.
That will give you confidence that you cannot be exploited.
Compare different companies
There are many companies in the industry that offer the same thing. It is only by doing individual comparisons of the different companies that it will be possible to make an informed decision. For example, you should compare Legal Bay Lawsuit Funding with others to get the best. In doing the comparisons, be sure to check on the rates, application fees, compounding rates, and experience among many other factors.
Involve your attorney
To be sure that you are on the safe side, involve your attorney from the onset. The attorney will have communication on your behalf. They will communicate with any third-party funding company on your behalf. As a rule of thumb, the law firm you are dealing with should not have ties with the funding company.