Receiving the lowest rate on a lawsuit loan should be the most important factor when borrowing against your case. Lower rates mean more money in your pocket after the case has been resolved. When someone applies for lawsuit funding they should be interested in two important factors; the lowest rate and the fastest approval.
Legal funding companies generally provide lawsuit funding against personal injury cases and some will offer commercial litigation financing as well. Personal injury cases tend to be the preferred type of case and reap the best rates within the industry. This is because personal injury cases are easier to underwrite, take less time to settle and are less risky. Commercial litigation funding is generally higher because there is less competition, cases take longer to resolve, and there is more risk to the lender. The lowest rates that any company will offer are against those cases that are settled.
Legal funding can be expensive because of the way the money is lent (non recourse). This means it’s extremely important the applicant is working with a company that has a proven track record of offering the lowest rates for their money.
The lowest rate for a case is determined by the risk of the suit, expected time frames for a settlement or judgment and the company underwriting the case. These are three important aspects when reviewing a lawsuit and will ultimately determine how low the rate will be approved at. The lowest rate isn’t determined whether you are employed or have good credit, its determined based upon the strength of the case; the better the case the better the rate.
How do you determine if you are getting the lowest rate possible for your lawsuit settlement loan?
It is very hard to determine whether you are receiving the lowest rate from a company. We would recommend using the following information. If a company is charging over a 3.5% compounded monthly rate for a personal injury case with clear liability and no reservations on collectability, you are probably being charged too much for the money. If a company is charging over 3% per month on a settled case and there are no reservations on collectability, you are probably being charged too much for the money.
At LawLeaf we are a respected and trusted source of lawsuit funding services in the United States and Canada. We have gained this reputation over the years because we have secured some of the lowest rates within the litigation financing industry. We truly believe each client should be charged the lowest possible rate for each lawsuit loan because we know the importance of paying off your expenses at the end of a suit.
If you are interested in pre settlement funding or post settlement funding contact LawLeaf today. LawLeaf is ready to work for you.
LawLeaf works with clients throughout the United States: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia D.C.