There are many pros, cons, and clowns when it comes to choosing a top-rated pre-settlement loan company. Since lawsuit funding is a relatively new industry, there are some companies that may try to take advantage of your situation by promising what they can’t and won’t ever deliver. Let’s take a look into the pros, cons, and clowns of the legal funding industry.
Pros of pre-settlement funding
The benefits of getting approved for lawsuit funding
Getting pre-settlement funding from a lawsuit that is pending can be beneficial to your financial life because you can then take care of bills that piled up throughout months or even years due to the injuries you suffered from your accident, a false arrest, or a discrimination lawsuit. If you don’t pay your bills this is certainly creating a huge problem for you, and being injured and not being able to work doesn’t help at all. Your credit rating is probably down and you have already tried to sell stuff just so you don’t lose the place you live. Pre-settlement lawsuit funding can be of great advantage to you if you are going through a situation like this.
Pre-settlement loans can help you get through when you are unable to work
When you are unable to work, whether is a personal injury from a car accident or a discrimination lawsuit, your paycheck stops. How do you then get money to pay rent, electricity, gas, food? With pre-settlement cash advances, you can quickly start to get back on track until you can land a job to support you through your lawsuit.
Lawsuit cash advance companies that offer lower rates with transparency
Companies like Baker Street Funding, offer low-interest rates that may allow you to get a better settlement check by using a lawsuit cash advance; as opposed to settling for some little amount the insurance company wants you to settle for. In your lawsuit path, not everything has to be dark, pre-settlement funding companies exist because of people like you so you don’t become a sheep heading to the slaughterhouse while the insurance wolf is out there to make the most out of you in your most vulnerable times.
Pre-settlement funding loans require no credit check and no job check
There are no credit checks nor background checks when it comes to pre-settlement advances. The funding firm is not interested in your assets, only in the outcome of your lawsuit as that’s the only asset you hold in order to get the advance. If your credit is bad, you have no job, the pre-settlement funding firm won’t look into these factors as they are not requirements.
Cons of pre-settlement funding
The fees on your lawsuit loan contract may not be as you expect them to be
Pre-settlement funding companies will formulate a contract FOR you with different fees for every case. No single CASE is equal. Your 6-month MVA case cannot get the same fees as the settlement that’s paying out in 3 months. It is advisable you speak to your attorney about the fees and ask the correct questions to the legal funder in order for you to get the utmost transparency and no surprises hit when you see the contract. Remember, you don’t have to sign. At Baker Street Funding, we match or beat every contract our competitor’s show. Bring us the contracts and you got yourself a fair deal.
You do not get 100% of a settlement cash advance
The most you will get from ALL legal funding companies is 10% of your case value.
If you don’t have an attorney, you can’t get a lawsuit loan
No legal funding company qualifies a person who represents himself on a case. If you don’t have an attorney, you don’t qualify for funding anywhere.
Certain states don’t qualify for pre-settlement funding
Due to rules and regulations from certain states that are possibly not advocating for “we the people”, lawsuit funding firms have decided to not do business with them. If you live in any of these states and you are getting denied, maybe is best that you call your state official or them to acknowledge this issue some Americans in these states are sadly going through, meaning they are pro-insurance companies, the big rollers.
Proper case file is imminent to getting approved
If your case is a legitimate case and your attorney doesn’t have the documentation we require in order to get you approved, then you can re-apply once your case progresses.
The clowns and liars in the industry
Certain lawsuit loan companies deceiving ways
If you ever feel like the funding company is using high-pressure sales tactics to get you to close on a transaction that you don’t understand you can always walk away and call someone else. Never allow them to manipulate you into signing a contract, this is a HUGE red flag that comes from not so great lawsuit loan companies all of us real funders are aware of, some brokers with a bad reputation (we strongly suggest you google names of the people you are dealing with), well, as usual, these individuals will push you into taking a loan that may not be beneficial to you in the future. Stay alert.
Promises of fast lawsuit cash advances while delivering late
Most legitimate settlement funding companies can close a transaction for you in as little as 48 hours. The best pre-settlement funding companies will tell you your case has been approved or denied within those 48 hours or will explain to your some issues that your case may have and an acceptable reason why is taking longer than usual. There can be complications with your case that can make the process much longer, but if your attorney is being responsive and the funding company is dragging its feet, get a second opinion.
Always ask questions and if you ever feel uncomfortable with the company you are working with, it is always best to get a second opinion.