Lawsuits are costly but big dollar settlements make it worthwhile for personal injury attorneys. If you have a strong case, then you can pursue compensation for your injuries but if you work with a law firm that charges by the hour it gets to be very expensive.
If you hired one of those law firms you see during “junk tv” and start the litigation process be prepared for a long journey. Just make sure that you are prepared for what could be a protracted legal battle.
It can take several months just before you get to a mediation and receive a settlement offer that will be pennies on the dollars. It will most likely be years before a big personal injury case reaches their conclusion.
It is mentally, emotionally, and financially draining. Defendants may take advantage of the situation to force plaintiffs into a much lower settlement. Instead of taking this path, consider seeking the help of a lawsuit loans broker for pre-settlement funding. This came into the spotlight during the victims compensation fund after 9/11.
While these litigation funders for pre and post settlement cases are of crucial importance to a fair case you should heed caution. There are only a few legitimate firms that have great references. The ones you see on television like JG Wentworth are the controversial ones as they spend more money advertising rather than focusing on giving you money. Companies like 500 Cash Out are the opposite as they focus on putting more money in the consumers pocket versus advertising on expensive television spots.
Pre-settlement funding is important because the funds allow plaintiffs to stay afloat despite the slow progress of the judicial system. Dire scenarios such as foreclosures and bankruptcies can be avoided while you await a verdict or settlement.
There will be less pressure to compromise despite delays. People can work directly with lawsuit lending companies that they find online or they can be more prudent to deal with a referral from their counsel who specializes as a lawsuit loan broker instead. These are the intermediaries that aid both sides in achieving their aims. Below are some of the most important advantages of having a plaintiff-broker connection.
Benefits of Working with a Lawsuit Loans Broker
1. Industry Expertise
Settlement loans are highly specialized financial products. They require in-depth knowledge of the law and the lending business. Brokers have both of these in abundance. In addition, they have years of actual experience assisting other plaintiffs get funding to keep their lawsuits going. All of these give them a unique insight into the lending process. Brokers can provide clients with sage advice in different situations. Their expertise allows them to guide applicants every step of the way. They can prevent costly mistakes and other major regrets.
2. Multi-lender Access
Each lawsuit lending company has its own set of procedures when dealing with applicants. They will ask for different documents and pose distinct questions. Some cases are brought against a company like the BP Oil Spill and others are against an individual. If a person were to go directly to these companies, then they will have to adjust each time. It can be a difficult and time-consuming process that does not even guarantee results. Law firms are not usually keen on going through the application process multiple times since this is inefficient. Lawsuit loan brokers make everything easier by acting as the buffer between the two sides. Lawyers will only need to send the documents once and the brokers take care of the rest. They can call up multiple lenders to see which ones can offer the best deals.
3. Personal Assistance
The lending companies are focused on evaluating the applicants and protecting their interests. They may not be inclined to do more beyond these. They could answer basic questions that are within their scope but nothing more. Their answers are also likely to favor their company. On the other hand, brokers can provide a more balanced outlook on the industry and the leading names within it. They can entertain more questions and extend a greater level of assistance.
How Brokers Help the Lenders
Now it is clear why borrowers would go through brokers but some might be wondering why lending companies would want to work with these middlemen. The reality is that brokers make their businesses easier by generating leads and taking care of the front end. Lenders can focus on other parts of the funding business such as improving their application process, vetting the borrowers, increasing their funding sources, ensuring a high collection rate, and so on.
The Job of a Lawsuit Loan Broker
Brokers will need to attract the attention of the plaintiffs through marketing and get them to call their offices. Once a transaction is initiated, they will gather the vital documents and pick a suitable lawsuit loan funding company. The brokers will monitor the progress of the loan application while providing answers to relevant questions from their clients. After they get an approval, they will provide the funding agreement to the client and their attorney. They will be available to talk about the terms of the contract. If the client agrees, then the contract will be signed and sent back to the lender. Brokers will make sure that their client is able to receive the cash advance.
Working with a lawsuit loans broker for a pre-settlement funding situation makes process go smoother. Clients are matched with the right lender to increase the chances of approval. Of course, their services do not come free. They are usually paid a small commission which can be deducted from the loan. Since their payment is dependent on successful funding, they are sure to work hard on making it happen. Many appreciate their efforts and feel that their payment is justified.