The commercial litigation investments market size was about $11.3 billion by June 2021. About 175,000 Americans are injured unintentionally every year, and average damages range from $3,000 to $75,000. Such cases can take anywhere between 9 and 18 months to be resolved. These numbers have investors flocking to lend toward personal injury cases in 2022.
Have a personal injury case that’s dragging too long? You, too, can get litigating funding to meet expenses while your lawyer fights it out. If you are looking at legal funding for personal injury cases, this is how you can find the best firms.
7 Tips To Find A Top Legal Funding Provider For A Personal Injury Case
1. A Firm That Works Directly With Your Lawyer
When pursuing legal funding for your case, it is best to have a legal firm that interacts with your attorney. Your lawyer will have the information crucial to the point, and the pre-settlement lender will need to evaluate the details before approving your loan. If the legal funds firm does not interact with your lawyer during the lawsuit, you should drop them and find a new one.
2. Check Interest Rates
Most funding companies will not have a single interest rate. Rates can vary based on the probability of you winning a settlement and the estimated amount. Therefore, check the interest for your specific point rather than the advertised rates. If your case is likely to win its lawsuits, you can negotiate a better rate. The rates usually do not go over 3.5%. Also, check if they calculate interest annually, semi-annually, quarterly, or monthly.
3. Respond To All Your Legal Questions
Curiosity got the cat, but not you. Asking questions before you sign the final agreement is vital to your well-being. Since it is your money, you have a right to do so. If the funding firm does not answer or is vague, you should look for another company.
4. Does Not Pressure You
Everybody has experienced telemarketing calls at some point or another. Once you fill out an application, if you start receiving calls about other products or are pressured to close the deal, you should back away. Litigation financing is your need, and you should be the one pressuring them. Find a patient firm as you take time to work out all the personal injury case details.
5. Quick Payout For Settlements
Most legal funding for personal injury cases claim to payout within 24 hours. You have to understand that it is a day from approval, not when you apply. Their verification process may take longer as they must confirm all the case details and assess your validity.
Thus, it is best to get an estimated timeline on the various aspects of the application approval process. You can rest assured when you know that the wheels are turning in the background.
6. Avoid Companies That Make Big Claims
You will see firms advertise a guaranteed payout. Skip such firms, as they will probably charge higher rates or have unfair clauses in the agreement. No investor will fund your case unless they see a potential to win.
7. Make Sure They Sign A Contract
You have found an investor offering reasonable rates and will pay out quickly. Ensure that all these terms are listed in a contract, which both parties sign. This will legally bind them to stick to the terms and safeguard your interests.
Some companies will not charge you interest but will take a small cut from your settlement amount as a fee. It is subject to your winning. Such contingent clauses need to be put on paper to protect you.
Conclusion
With so much legal funding for personal injury cases firms cropping up, you need to make sure that you pick one smartly. The tips mentioned above can help you find the best firm to meet your financing needs. There is nothing to stop you from getting what you rightly deserve in 2022 and 2023.
