Settlement Funding Companies – Tips To Note Before Getting Into A Contract With Them
Getting into lawsuit funding contracts with lenders can be quite a stressful process. The entire aspect of having to deal with a personal injury lawsuit is already tedious enough. You might be out of work for sometime which means that keeping up with your bills might already be becoming difficult. On the top of it, you will have to bear with legal fees such as attorney fees, legal charges, stamp duties, filing costs and many other tid-bits of expenses. All in all, the situation as it is, might have you in a fix.
In such a scenario, having to deal with settlement funding companies, combing through their terms and conditions, assessing your eligibility for availing of the loan and then dealing with all the paperwork involved – that really doesn’t sound like everybody’s cup of tea. But any mistake made at this stage might have you paying dearly at the time of receiving your settlement money where the lender might walk away with a huge chunk of the amount in the form of hidden costs and charges. This is why you must be careful in dealing with such issues.
Every settlement funding company will have its own set of terms and policies that it will follow and impose for the financial assistance that it will disburse. You will have to consider each lender individually and look into the minute details of their loan conditions to determine which one will be most suitable for your needs. These tips will help you uncover most of these points and keep safe from making any mistakes with these contracts. Make good use of them..
- Application fees: Although, these days with most companies adopting the practice of accepting online loan applications, charging of application fees has become obsolete. But you must still find out these terms before making an application to avoid unnecessary expenditure.
- Involve your attorney: Your lawyer is well versed with the industry and will thus be able to advise you well in making the choice of the settlement funding company for your case. He/she will also help you negotiating favourable terms on the contract.
- Interest rates and compounding: If a company advertises an interest rate of 3 percent, ask how often the interest is compounded. It could make a huge difference in the final amount.
- Interest caps: There are many companies that stop adding interest and other charges after a designated length of time. This condition can play to your favour in case the time left for you to receive the settlement amount is longer. Make sure you enquire the settlement funding company on these terms.
- Conflicts of interest: This issue might create a legal snag in your funding contract. Make sure the lender has no financial ties to a medical provider or lawyer involved in your case.
Following these basic precautions will help you manage your loan process safely and to your benefit. Visit NLFunding.com for more information on settlement funding companies.
About The Author
Sydney Banks is a litigation funding expert who openly advocates the many advantages that this option brings for plaintiffs in need of intermittent financial support during the course of cases. She recommends NLFunding.com as the best and most trusted provider of such products in the US.