Lawsuit Loans Broker – The Case For Seeking Pre-Settlement Funding
Things can get out of hand pretty quick when you’re the plaintiff in an ongoing lawsuit. More so if the suit was necessitated by personal injury, a car crash, unfair dismissal from work, or any event that put you at a disadvantage. You’re stuck in heap of mounting bills, court costs, and perhaps even medical expenses; seemingly with no way out. Not the kind to despair easily, though, you continue looking out for possible lifelines, eventually happening upon this thing called pre-settlement funding.
Essentially, this is an arrangement where a company extends funding upfront in exchange for a percentage of the proceeds from the lawsuit settlement. It’s also known as litigation financing, or lawsuit loan in colloquial terms — though it has little in common with a traditional bank loan. You’re not required to pay back the money if the case is decided unfavorably, or fails to yield the anticipated award. And crucially, you don’t need good credit to qualify; just a well-grounded lawsuit and the representation of a credible attorney. Sounds easy enough, right? Well, there is one more person you might want to have on your team: An experienced lawsuit loans broker.
Even though it’s been growing more popular lately, pre-settlement funding is still an alien concept for most people. Plaintiffs often find themselves in an unfamiliar landscape when approaching financiers, and their attorneys are often just as clueless. As much as they strive to look out for their clients, the majority of lawyers have a scant understanding of the concept. And it doesn’t help that mainstream media still perceives the practice as a Wild West of sorts.
It’s here that brokers come into the picture. Acting as a liaison between you and funding companies, a broker basically helps you overcome the informational asymmetry that currently exists in the market. Let’s look at some of the benefits you will reap from engaging a lawsuit loans broker:
– Connections: Legal funding brokers are connected to a wide range of players, from underwriting consultants to lenders themselves. This puts them in a much better position not just in navigating the industry, but also figuring out which options are best suited for your particular situation.
– Access Multiple Quotes: Speaking of options, working with a legal funding broker will see you get a lot more quotes than you’d approaching lenders on your own. As a matter of fact, brokers often have access to products that aren’t available to the general public. Having more quotes to choose from obviously means you’ll be able to find a favorable deal much quicker.
– Advice: As we highlighted earlier, every plaintiff seeking pre-settlement funding could use the counsel of an experienced industry insider. Someone who not only has a clear grasp of the landscape, but who can also be trusted to act in their (the plaintiff’s) best interest. Brokers are more than happy to play the part. They can help you analyze quotes, understand what the terms and conditions mean, and ultimately make a sound, informed decision.
– Save Time: This is arguably the biggest benefit that brokers afford plaintiffs. Time is of essence when you’re seeking litigation financing. You might have a bunch of overdue commitments that need taking care of, and charges that must be settled to keep your lawsuit going. And while lenders generally release funds quickly, landing a successful application is a whole different matter.
Working with a lawsuit loans broker will save you time in several different ways. You won’t need to approach multiple lenders in search of quotes. Comparing offers and selecting the most favorable one will also take less time, thanks to the broker’s expertise. And because they work directly with lenders, you don’t have to waste precious time trying to get your foot through the front door.
– Convenience: Isn’t it convenient not having to navigate a world that you’re barely familiar with? Making endless phone calls, filling out a bunch of paperwork, and maybe even having to travel from one company to the next? Once again, your broker will happily shoulder the burden.
And make no mistake that convenience is something you need during this critical juncture of your life. As important as funding is, the progress of your lawsuit is still the number one priority. It’s only by partnering with a lawsuit loans broker that you’ll be able to focus fully on the latter.
– Land a Better Deal: You’ve probably heard that engaging a broker ensures you’ll always get the short end of the stick. Nothing could be further from the truth. Brokers actually help plaintiffs land better loans by unlocking more competitive quotes than are available in the open market. Their industry expertise also allows them compare offers much more exhaustively. But most importantly, a good broker can negotiate with the lender to get some of the fees waived — something that neither you nor your attorney could manage otherwise.
The monetary benefit of engaging a lawsuit loans broker become more apparent when you take other expenses into account. Working with one means you won’t have to spend as much traveling or submitting paperwork when applying — which ultimately makes the funding more worthwhile.
Working With a Lawsuit Loans Broker: What You Need to Know
It’s evidently clear that seeking pre-settlement funding through a broker helps level the playing field for both plaintiffs and their attorneys. Post Settlement which comes after a settlement has been made but the money has yet to be received is also important for plaintiffs.
Companies like JG Wentworth spend a lot of money on advertising so you know their name. Unfortunately that’s also the reason why clients tell us they get the lowest offers. There are a lot of great companies out there for pre settlement loans and litigation financing.
That being said, not all brokers are created equal. You still need to do your due diligence to ensure you get the best possible deal.
Follow these tips to help you find a broker you can trust:
– Only work with verified brokers: We say ‘verified’ because there have been cases of unscrupulous agents masquerading as brokers. What’s the difference between the two, you ask? A true broker will usually obtain quotes from a wide range of sources. Agents, on the other hand, suggest loans from a panel of select lenders. You only want to partner with a broker who has a proven track record of good faith. Check online reviews and ask your attorney to vet the broker to see if they’re actually legit.
– Check professionalism: Pre-settlement funding is a highly-collaborative process; one that will require you and your attorney to work closely with the broker. Not to mention that they’ll be in contact with a handful of lenders on the other side. You want someone who’s highly competent in this capacity. A good funding broker should be able to communicate clearly, offer sound advice, and ultimately help you choose a loan that is right for you. Under no circumstance whatsoever should they pressure you to commit yourself to a particular offer.
– Make your needs clear: Most of the problems encountered by plaintiffs seeking funding arise due to the inability to specify one’s needs. Do you want a loan to help fund your lawsuit, take care of short-term expenses, or both? Figure out what you want beforehand, and make your needs explicitly known to the broker. This allows them look out for quotes that are more appropriate for your case. Lining out your priorities will also help you better judge your broker’s performance, since you’ll easily tell whether or not they’re looking out for your interests.