The lawsuit loan industry is saturated with dozens of seemingly indistinguishable companies.
Each and every one of these pre-settlement funding companies will tell you that they have the lowest rate, the fastest turnaround, and can get you the most money.
Each company states they cover most personal injury claims, such as auto accidents, premises liability, medical malpractice, and others.
Many companies say that they’re the #1 rated or the best lawsuit loan company. They can’t all be right, so how do you sift through fact and fiction?
What Are the Best Lawsuit Loan Companies and Settlement Funders of 2022?
You should compare offers from several lawsuit loan companies to find one offering the right interest rate and cash advance amount for your needs. Generally, lawsuit loans with simple interest will work out more cost-effective than settlement funding with compounding interest.
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What To Consider When Approaching Settlement Funders
When you first contact a settlement funding company, they should quote you some basic pricing without needing too much information. You may need to provide your case type and your state, but this should be enough for the representative to give you concrete details of interest rates and funding fees.
You should consider asking the legal funding company’s representative the following questions:
- How much is the origination fee? Is this fixed or variable according to the funded amount?
- Do you charge simple or compound interest?
- What is the rate of interest?
- How quickly can I get a cash advance?
- Are you a broker or a direct funder of the lawsuit loan?
Finding the best lawsuit loan companies
The best lawsuit loan company is not necessarily the one that shows up on your TV or first on a Google search.
The best lawsuit funding company is not always the company your lawyer recommends.
The best pre-settlement loan company is the one that gives you the lowest interest rate on your advance, period.
Research pre-settlement funding
The pre-settlement funding industry is unlike any other. There is very little regulation and a huge information mismatch between plaintiffs and cash advance companies.
Unless you’re an accomplished personal injury attorney or big-wig finance guy, it can be tough to understand the true risk profile of your personal injury case or the baseline value.
Look into which funding companies have the lowest rates for settlement loans. See if the type of injury you sustained is covered by their policy.
How quickly can the company get you your settlement funding, is it in 24 hours or longer? Do they cover claims such as medical malpractice lawsuits, FELA, and car accidents? Does the company follow simple rates or compound rates? Is a credit check involved?
Those are all things you should look into while searching for a settlement funding company for your case.
The information above is all geared towards helping a plaintiff get the best rate possible on your pre-settlement lawsuit loan.
If a legal funding company doesn’t reach out to you, and instead calls or contacts the attorney on your case, be wary. A good pre-settlement funding agency is on the plaintiff’s side. They should be providing daily updates on your case, be easy to reach, and return your calls.
Be sure to fact-check along the way. Did they promise you ZERO fees for your case? Make them stick to it or walk.
Are they trying to pressure you into signing a contract by saying it will soon be “off the table?” Take their contract to another lawsuit loan company and see if you can get better terms elsewhere. Don’t let anyone pressure you into signing something you don’t understand or aren’t sure of. Rushing into lawsuit funding is a bad idea.
If your lawyer refers you to a pre-settlement funding company, ask them why.
Like any other lawyer, most personal injury attorneys have their clients’ best interests in mind, but some don’t. Make sure you ask them questions so you find the best pre-settlement funding company. Your attorney will know more about lawsuit funding than you do, so try to learn from their experience.
Good reasons for referring you to a pre-settlement funding company would be that they have good rates, charge no fees, and only charge simple interest.
These are good answers. It sounds like your attorney is looking out for you and your settlement. You should follow up by asking what they’ve charged clients in the past, or ask to see a sample contract.
Shaky reasons for referring you to a legal funding company are “I’ve worked with them a lot before”, and “they handle all of our clients’ funding needs.”
These are shaky because they provide no real information. You should follow up by asking why they prefer to work with this company, or why they have sent them cases in the past.
Red flag reasons for referral are “They don’t ask for a lot of information”, “they’re easy to work with”, or “they take reductions at settlement.”
We consider these to be red flag reasons for referral.
If a pre-settlement funding company isn’t asking questions, they’re not doing their homework on the case. If they don’t review your personal injury case documents, they are charging a higher interest rate to cover losses. A lawsuit loan already takes a portion of your settlement away, you want to reduce that portion as much as possible.
“Easy to work with” means your attorney might just be avoiding doing extra work by sending you to the laxest pre-settlement funding company, see above. If you have a strong claim, you’ll want a settlement cash advance from a company that does a good job of vetting claims. Otherwise, you will be charged excess interest to cover their losses.
“They take reductions at settlement” sounds great, but why count on something that’s not clearly written in the contract? You’re signing a contract with a company that’s going to take a chunk out of your settlement. Rely on the contract your signing, not some arbitrary “kindness” later.
If you find a lawsuit lending company by looking online, ask lots of questions
The best lawsuit loan companies will be able to answer your questions easily and clearly. Regardless of their answer, make sure that you confirm anything you are told before signing a contract.
We advise plaintiffs to get a formal quote in writing before applying with any company. When you call many pre-settlement lawsuit funding companies, they will give you the run-around when you ask about rates. They will try to ask for your case and lawyer’s details before providing a quote. You should insist on a written quote before providing any sensitive information.
Ask your attorney or paralegal if they have worked with this company before. See if they have a sample contract from the company.
Uplift, for example, has a deep understanding of the logic behind pre-settlement funding. We can then explain every question or concern you have for us. We take your case seriously because we know that personal injury is no laughing matter. Uplift gives cash advances on most personal injury claims, from medical malpractice to car accidents. And we can get your approval of your settlement loan within 24 hours. Call us to see if your case qualifies for our cash advance in as little as two minutes.
Don’t just take their word for it
Do a quick search on google for “top-rated lawsuit loan companies.” You’ll see at least 20 companies telling you that they are top-rated and that they can help with your case. Call them and ask about their settlement loans. Ask them if they can get you your funding within 24 hours of approval. Ask them what personal injury cases they give cash advances for.
Overall, they’ll tell you they’re the best. That they offer the most reliable settlement cash advance for your case. Great.
If they haven’t been reviewed with a bunch of other pre-settlement funding companies by an independent third party (none of them are), then they’re just making it up.
Look for good Google, or Yelp reviews, but take these with a grain of salt. Often, the only customers who will review a company are those that have been asked for a review. This means that lawsuit funding companies have a large amount of control over their rating.
Tons of reviews over a short period of time? Red flag. The company probably has a campaign going and asks for reviews from satisfied customers. Don’t let yourself be one of the unsatisfied customers. Always sort by lowest rating and see what those folks have to say about the company.
What rates do the best lawsuit funding companies charge?
The best lawsuit funding companies charge a 15% – 20% simple, semi-annual interest rates. You should insist on a rate in this range.
Many lawsuit funding companies will tell you they charge 2% to 3% monthly. Usually, that is a compounding figure. Often, after a formal review, the rate will be closer to the high end of that range. After tacking on fees, you will end up paying more than 80% in the first year.
If you’re a personal injury plaintiff with a solid case, you should never settle for paying that much interest to a lawsuit loan company. Rather, you should aim to pay a total finance charge (including fees and interest) of less than 50% yearly.
Some of the top lawsuit loan companies you can look into
Here are a few of the most prominent lawsuit loan companies that might be worth getting a quote from. Pre-settlement funding companies charge a variety of rates and terms. We encourage plaintiffs to refrain from formally applying with any single company before getting a written quote via email.
If you receive a formal offer from any of these lawsuit funding companies, we will always do our best to beat the terms and match the amount of the offer.
Lawsuit Loan FAQs
Lawsuit loans can be worth it as long as you satisfy these two criteria:
1. You have exhausted all other financial options including asking friends and family and absolutely need the money
2. You shop around to make sure you get the best interest rate possible for your case.
If you don’t do both of these, lawsuit funding is simply not worth it
You can get lawsuit funding by contacting any number of companies online. However, you should take care to find a company that charges low, simple rates. The litigation funding industry is under-regulated. Plaintiffs have to advocate for themselves and be diligent about finding low interest rates with total costs of less than 50% annually.
In some states, it is legal for lawyers to give our lawsuit cash advances. However, in most states, it is not legal for a lawyer to charge interest on advances to clients. It is always a good idea to ask your lawyer if they are able to provide you a pre-settlement cash advance before seeking funding from a pre-settlement loan company.
Once a lawsuit funding company has the information they need from you and your lawyer, it should never take more than 24 hours for them to make a decision. The best lawsuit loan companies can provide you cash the same day you are approved.
Low Rate Funding and 24 Hour Review From Uplift Legal Funding
At Uplift, we too think that we are one of the best pre-settlement loan companies. What makes us special?
24 Hour Funding
Get $500 – $250,000 as soon as today
Low, Simple Rates
Simple, non-compounding rates that save you money
No Monthly Payments
Only pay at settlement – if you lose your case, you pay back nothing
Our passion is helping plaintiffs get better rates and lightning-fast turnaround on lawsuit loans. We understand that your settlement is far away but your injury is still there. We can review your case in less than 24 hours.