Uplift explains how many lawsuit loans you can get and whether you can get funds from multiple companies

How Many Pre-Settlement Lawsuit Loans Can I Get?

Litigation funding is a critical way for you to stay afloat during the personal injury process. Your claim or case could take years to settle. In the meantime, you have pressing financial issues. In some cases, you may already have received one lawsuit loan. The case may be taking longer than expected, and you could run out of money.

The good news is that you are not limited to just one lawsuit loan. Depending on the amount and strength of your case, you may be able to receive additional loans. You can always talk to a litigation funding specialist about your options. Many people will end up taking out a second and even third lawsuit loan. Regardless of whatever funding you have received, we will consider the merits of your loan application and work with you if possible.

Will I get approved if I have funding from another pre-settlement funding company?

Receiving funding from another company will not keep you from getting a loan. If anything, the fact that you have already gotten a loan sends a signal about the strength of your case. Of course, the funding company will review your case in light of the settlement funding that you have already received. However, in many cases the initial loan will be for less than the full funding value of your case. Many plaintiffs will get two or more loans because cases can drag on, and expenses could be greater than expected. This is not something that is unusual. There are limits to what you can take in a first advance, and you may need more money when your personal injury case could take years to resolve.

One way that you can get approval from a second funding company is if you refinance your initial settlement loan. Depending on the terms of your existing pre-settlement advance, this could actually be beneficial. Refinancing your existing loan while taking out new money could help you get a lower rate.

Benefits of refinancing with Uplift Legal Funding

If you have already taken out a lawsuit loan, you can refinance it at better payment terms. At Uplift Financial, our lower rates make refinancing your loan attractive. This will save you money and maximize the amount that you can borrow against your lawsuit. We will work directly with your attorney to get the information that we need to approve your application.

Refinancing with Uplift Legal Funding makes sense for you because:

  • We do not charge with any upfront fees, making us a lower cost option
  • Our interest rates do not compound, making the true cost of the transaction much lower
  • We offer clear contracts with all repayment terms spelled out on the first couple pages
  • We can offer approval and funding as soon as the same day you apply
  • Our staff aims to be as helpful as possible while providing outstanding customer service

How refinancing works

Refinancing is the same as another loan company paying off your initial loan and then lending you money themselves. Each lawsuit funding loan will have a payoff amount that can repay the loan before your case settles or the jury makes an award. You would contact a refinancing company, which would then obtain the payoff amount from the original loan company. They would make full payment to that provider. Then, you would have an outstanding loan with them on new terms. The second company would then review your case to see if they can give you the extra money that you need.

Refinancing can help you in several ways. Once you have taken a loan from one funding provider, you may be tied to them by contract for the rest of your case. If they reject your application for a second loan, you may be stuck with them and not able to get any extra money. However, another provider may be looking at your case differently and are willing to lend additional money. Having another funding provider refinance and buy out your loan would give you a chance at approval elsewhere, so you can take a second loan.

What are the qualification criteria for getting more funds?

The criteria that are used to approve an additional litigation funding loan may be different from those that were used the first time. The aim of a second loan is to provide you with additional funding while the underwriter is trying to gain confidence that the loan will be repaid. The underwriter understands that you have taken out less than the maximum allowable amount in your first loan.

If you are seeking an additional litigation loan from a second provider (who has repaid your loan to the first provider), they may still look at some of the same factors as the first loan. They will still analyze the strength of your case and the likelihood of recovery because they do not want to invest in a case if there is a chance that they will not be paid at all. The other factors will relate to the amount of money that you may recover in the lawsuit and the timing of your settlement.

Here are some factors that a lawsuit funding company will consider that are specific to your second or third loan.

What factors determine whether or not I am approved for additional pre-settlement funding?

The litigation funding company is making a very quick decision with what could be a large amount of money. They will look at each case on its own in a very short period of time. Since we promise a quick turnaround, we are taking a risk when approving another litigation loan. This is part of the customer service that we provide. Since we are a transparent lender, we will let you know exactly how we will be looking at your case.

Is your case settled or pre-settlement?

Settled cases are much less of a risk for the underwriter. They are giving an advance on something that has already been agreed upon, and they will not be taking a chance that you receive nothing. However, most personal injury cases that Uplift funds are pre-settlement. Our experienced underwriting team has no issues determining the likely settlement value of your case even before any demands or offers have been made.

What is the value of your personal injury case?

The biggest concern for the underwriter is that the litigation funding company is to be able to be repaid. They do not want to give you more than the case is worth in general because then they would not be able to recoup their investment. You are usually limited to a certain percentage of the estimated value of the case. The underwriter will use their assessment of your case’s worth as a potential cap for the amount that you can borrow.

What are you expected to net from the lawsuit?

We will review all of the possible damages in your case. This includes your medical bills, lost wages, and pain and suffering damages. Net means how much is left over after your attorney’s fees and medical bills are paid. Legal funding companies need to ensure that there is enough money left to pay back the loan, so they are looking at the amount that would go into your pocket after all fees are paid. Because of our low rates and simple interest, Uplift Legal Funding is actually able to provide a higher loan amount as a percentage of the value of your case than many other funding companies. We can advance as much as 25% of the net amount you are expected to receive from your lawsuit.

When is your personal injury case likely to settle?

The closer your case is to settlement, the greater the chances that your loan will be approved. You can even receive more than the usual maximum amount of the loan if your case has already settled and you are waiting for your check. If your case is nearing settlement, there is less risk for the underwriter. Your case may go up in value the closer you get to a settlement, allowing you to take out more in loans against your eventual settlement. The further out you are from a settlement, the more risk there is to the lender. A litigation funding company is looking for cases that have certainty in the liability, and all that is left is to negotiate an amount of settlement.

How many lawsuit loans have you received so far, and how much do you owe back?

Funding companies do not want to overfund the case. Lawsuit loans are non-recourse loans, meaning that if you do not win your case or do not recover enough money, the funding company cannot come after you for the money. Therefore, they will be careful about how much they put out. If you have already funded a large portion of what you can expect from your case, a funding company may be more cautious.

What are the interest rates for 2nd+ lawsuit loans?

The interest rate that you pay depends on the factors that are listed above. The lender may give lower rates when you have a case that is already settled or is very close to settlement. One reason to go with Uplift Legal Funding when you are seeking a second litigation loan is that we offer extremely competitive interest rates. We can give you a rate as low as 15%, which is far less than some of the leading companies in the business. Not only that, but we only charge simple, non-compounding rates, further saving you money.

While the interest rates may vary, one thing that remains the same is that you will get a guaranteed quote from us as soon as you call. We will be fair and reasonable, unlike many major lawsuit loan companies that can get away with charging exorbitant rates and fees. Your application will be evaluated on a case-by-case basis, but you can have confidence that we will quickly review your case and give you a reasonable quote.

Managing Member at Uplift Legal Funding
Jared Stern is an experienced financial professional with six years of experience in the pre-settlement funding industry. After graduating from UC Berkeley with a degree in economics in 2014, Jared began his career in Morgan Stanley's mergers and acquisitions investment banking division. After working with another pre-settlement funding company for two years, Jared founded Uplift Legal Funding in 2017 to give injured plaintiffs a better choice in lawsuit loans. Check Jared out on: LinkedIn | Legal Reader | Attorney At Law Magazine
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