Most industries tend to find their formula and stick with it. Sure, some companies may sell seasonal products and offer special promotions, but you won’t see McDonalds suddenly decide to start to make and sell lawnmowers. Lawsuit lending is not one of those static industries.
First off, the whole business is probably only about twenty years old. Before that, if you needed to obtain needed money before your lawsuit ended, you either had to get money from your wealthy friends or your attorney would (sometimes illegally) loan it to you. Now there are companies to do that for you.
This industry is one to keep your finger on the pulse, though. Changes are happening every day to the way the industry functions, what it charges, where it can work, and how it is regulated. Here a few ways the industry keeps evolving:
States Come and Go
Due to the varying laws in different states, funding companies change where and how they can fund. It is currently legal to fund in all 50 states, but there are certain regulations in some states that make it difficult to obtain funding there. What’s more, each company may differ with which states it can fund.
These lists don’t always stay the same, though. Some states that were once poor funding states could have had changes in their regulatory laws, and suddenly they can once again be fundable. Other states simply require funding companies to change their funding structure. The takeaway here is that if you are currently in a tough funding state, that doesn’t mean it will always be that way. Check with funding companies every so often to see if there have been changes in your state.
Time = Knowledge
The first time someone had a bad reaction to a drug, there may not have been much known about it. As more and more people came forward with similar problems, attorneys as well as funders started doing more research about those cases. This knowledge has helped form an understanding about how these problems happen and about how lawsuits that result might end up.
This benefits you especially in terms of funding. Some companies may not be able to consider certain case types when there isn’t much demand for those accidents. As more time passes and more information becomes available, companies become more knowledgeable. One case type that can’t be funded today could be perfect for funding in a month. Continue to check with funding companies to see if your case type has become available for consideration.
Fees can change
Interest rates have come down drastically in litigation finance from the early days. Fifteen years ago companies were charging 5.99% compounded monthly interest rates or higher. Funding today is very affordable and promotions can happen that lower rates even more. Make sure to find a funder who can give you a good rate. Your financial future is at stake.
The perception is changing
Before attorneys knew what legal loans were, many were skeptical. They would advise their clients against it without even knowing what it entailed. Today attorneys are more versed in the process. In fact, many attorneys even refer their plaintiffs directly to funders to get a loan because they know that money can help the client reach the case’s true settlement value. Your attorney’s cooperation is essential and fortunately they are more willing than ever to do so.
Staying abreast of changes is a smart idea. Check with your attorney to see how getting financial help can result in a bigger return for both you and your attorney. Ask funding companies if the details of your application have changed due to changes in the industry. Everything changes and, in this case, it’s for the better.