Whether you get legal funding from Uplift or not, we want you to get the lowest rates possible on your advance.
As we have discussed in prior press releases, we feel that plaintiffs with car accident lawsuits are overcharged for funding.
Fortunately, there are some easy steps you can take to avoid high interest rate advances. We’ll teach you step-by-step how to get the best terms on your car accident loan.
1. Start Early
This is arguably the most important item. Getting started on your lawsuit loan request well before you actually need the funding allows you to take time to find and negotiate the best deal.
2. Find a Reputable Pre Settlement Funding Company
This can be tough, but you need to do your homework. Look up a few legal funding companies that provide advances on car accidents on Google. Compare each company’s Yelp ratings and Google ratings, then look for any big red flags on their BBB page. Remember that companies can have tons of BBB complaints and still get an “A+” rating.
3. Do Your Research
Before calling any lawsuit lending company, you need to understand some interest rate terms:
- Simple interest or non-compounding interest refers to interest that is calculated based on principal, or the amount you borrow from the pre-settlement funding company.
- Compound interest refers to interest that is calculated based on principal PLUS accrued interest. This means that interest is charged based on the total amount you owe, not the amount you borrowed. Some companies like Oasis Financial offer funding that accrues similar to compound interest, but instead uses a multiple method. Be wary!
- Monthly interest refers to interest that is charged monthly, or 12 times a year.
- Semi-annual interest refers to interest that is charged every six months, or two times a year.
Simple interest is often much cheaper than compound interest, especially if your case takes a long time to settle.
4. Talk to a Few Funding Companies
Make a list of legal funding companies that specialize in auto accident lawsuit loans. Ask the following questions:
- What interest rate do you charge?
- Are there any other fees?
- Can you send me a sample contract via email that shows me how much it would cost to get $1,000 of cash in my pocket, after all fees?
If any of the funding companies won’t provide clear answers to these questions, hang-up! Any reputable company should be able to provide a sample contract within 20 minutes of learning very basic details about your case over the phone.
5. Compare the $1,000 Accident Loan Contracts
Always ask for the same dollar value on the contract so that you can do an apples to apples comparison of terms. Look for the payoff table on the contract that shows in real dollar terms how much money you will owe at what time.
Most reputable companies show this information in six month increments all the way out to three years from the date of the advance. However, some companies start with six months and then change to three month increments to throw you off as the effective interest rate increases in later periods. Don’t be fooled!
6. Negotiate the Terms
Most clients don’t know that funding companies are typically willing to negotiate terms. Once you have a couple options (or even if you only have one option), it is time to fight for a better deal. There is no harm in asking for lower fees, a lower rate, no delivery fee etc. as applicable.
If you have multiple funding options, try to leverage these options to get a better deal out of each funding company. At Uplift for example, we’ll beat any competitor’s contract.
7. Choose the Company that is Right for YOU
Based on your own research, choose two or three companies to move forward with. Let them contact your attorney and review your case. Choose the company with the best terms on the final contract you receive.
Uplift Legal Funding
Uplift Legal Funding strives to help plaintiffs keep more money from their settlement in their own pocket. We provide some of the lowest rate accident loans in the industry. We exclusively provide funding with simple, non-compounding rates. Apply online today or give us a call at (800) 385-3660.