How to Find the Lowest Lawsuit Loan Rates
Finding the lowest lawsuit loan rates is very important to ensuring that you have money leftover at settlement.
This isn’t easy. The industry is full of people ready to take you for a ride. So here is how you make sure you protect yourself.
- Shop around. Make a list of all the biggest and best funders in the space (look online and ask your attorney). Jot down their contact info. Call the top 3. Write down notes about rates, fees, and names. This will come in handy when you call the 4th company.
- Bargain. Don’t be shy about telling these guys that you’ve been looking elsewhere for lawsuit funding. You are the customer, you’re the one with the personal injury, and you deserve the best. Understand that these lawsuit guys are in business because of you. This means you have the power.
- Ask questions. Many companies are brokers. Not all brokers are bad, some can actually help you get very good rates. Asking about rates and fees (and then holding them to their word) is very important.
Above all, you want to work with an honest and transparent company that doesn’t back-pedal or go back on their word. Write down what each funder has told you, and make sure everything is as-discussed on the contract. If someone gives you a range on a rate or fee, it should be a small range. 1-3% compounded (frequently quoted) is a huge range and should be treated as suspect. Work with someone who can clearly tell you a reasonable range and stick with it.
Think like a lender. If you know what funders look for in a case, then you have some bargaining power. Direct lenders are looking for slam dunks. They want serious injuries, clear fault, and coverage. If your case sounds like this then you’re in the driver seat. If it doesn’t, you can still bargain – don’t settle for bad lawsuit funding terms.. As the customer, you the power to say no and go somewhere else.
Lawsuit funding isn’t cheap. Getting a reasonable rate takes no more than time and diligence.
Below are some basic questions you should ask every company:
- Ask if it is compounded or simple interest
- This is important. Why? Because 2% compounded can end up being more expensive that 3% simple interest. Albert Einstein famously said “the most powerful force in the universe is compound interest.” We’ve heard that he was a pretty bright guy.
- Ask if there are up-front fees
- While this how most of these guys make money, if you ask them to remove them, they will. If they don’t, find someone that will. It’s your money and you deserve all of it.
- Make sure there is a payoff table on the front page of your contract
- This kind of transparency is a must. Don’t sign anything that you don’t understand. Rates should be quoted in dollar terms based on settlement dates. All major terms should be shown on the front page of the contract. If you’re not sure, talk to your attorney.
Uplift Legal Funding
Getting a lawsuit loan with Uplift is a breeze. We pride ourselves on working closely with plaintiffs, and we stand out because no one does it like us. Our case managers will keep you informed, and up-to-date while we quickly process your request for funding.
We have representatives standing by to answer any question you might have. Give us a call today at (800) 385-3660 or apply online to learn more about how we can help you.