The lawsuit funding industry has become saturated with dozens of seemingly indistinguishable companies.
Each and every one of these lawsuit funding companies will tell you that they have the lowest rate, the fastest turnaround and can get you the most money.
They can’t all be right, so how do you sift through fact and fiction?
Best Lawsuit Funding Companies
The best pre-settlement funding company isn’t always the one your lawyer recommends, but it might be.
If you’re lawyer refers you to a funding company, ask them why.
Like any other lawyer, most personal injury attorneys have their clients’ best interests in mind, but some don’t.
Good reasons for referring you to a lawsuit loan company would be that they have good rates, charge no fees, 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 funding company are “I’ve worked with them a lot before”, “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 funding company isn’t asking questions, they’re not doing their homework on the case. If they don’t do much review, you can bet the farm that they charge high interest rates to cover losses.
“Easy to work with” means your attorney might just be avoiding doing extra work by sending you to the most lax funding company, see above.
“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 funding company by looking online, ask lots of questions
The best legal funding 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.
Ask your attorney or paralegal if they have worked with this company before. See if they have a sample contract from the company.
Don’t just take their word for it
Do a quick search on google for “top rated lawsuit funding companies.” You’ll see at least 20 companies telling you that they are top rated. Call them. They’ll tell you they’re the best. Great.
If they haven’t been reviewed with a bunch of other 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 legal 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.
Do Your Research
The lawsuit funding industry is unlike any other. There is little regulation and a huge information mismatch between plaintiffs and funding companies. Unless you’re an accomplished personal injury attorney or big-wig finance guy, it’s unlikely you have any idea what your portion of your case is worth, or the chance of settlement.
- How do I Choose a Lawsuit Funding Company?
- What’s it Worth? How Much Funding Can You Get?
- Finding the Lowest Lawsuit Loan Rates
- 7 Things You Must Know Before Applying for Lawsuit Funding
If a company doesn’t reach out to you, and instead just calls or contacts your attorney, be wary. A good funding company is on the plaintiffs side. They should be providing daily updates, be easy to reach, and return your calls.
Be sure to fact-check along the way. Did they promise you 0 fees? 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 funding 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.
Low Rate Funding and 24 Hour Review From Uplift
At Uplift, we too think that we’re the best lawsuit funding company. But we don’t have to tell you that. Actions speak louder than words.
Our passion is helping plaintiffs get better rates and lightning fast turnaround on legal funding requests. For most claims, we can review in less than 24 hours.