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Low Rate Lawsuit Funding

Low Rate Lawsuit Funding



Low rate lawsuit funding is not always the best bet, because a lot of funding companies advertise low rate funding to get you in the door, but once you are show interest they confuse you and hide fees and rates. Then low rate lawsuit funding turns out to be nothing of the sort, and is actually very expensive. You must read The Truth About Lawsuit Loans.


Low Rate Pre-Settlement Funding

Companies advertise the low rates but often the rates quoted are for a monthly interest rate not the typical annual rate. There are hidden fees and the rate advertised often for specific types of cases and would not really apply to many loans they fund. Buyer beware. There are reputable lawsuit loan companies out there but they probably do not advertise low rates.



6 Reasons why you might need a lawsuit loan

1. You have no money and are too injured to work
2. You have tried to borrow money from banks and can’t
3. You have tried to borrow money from family and can’t
4. You have sold a lot of things you don’t need to raise money and still need more
5. You need the money to eat, keep your home or keep the lights and water on.
6. You need the money to be able to wait out a low settlement offer

If you really think you need a cash advance on your lawsuit read “The Truth About Lawsuit Loans

Pre-Lawsuit Loans

It is difficult to get a loan pre-lawsuit because settlement funding companies need you to be represented by a lawyer and to have a case already underway. The lending company needs to look at the facts of the case and determine if they can advance you money on your case. If you are inquiring about pre-lawsuit loans you should read “The Truth About Lawsuit Loans

Loan Lawsuits

Do you think you need a loan on your lawsuit? You probably don’t.
Try and find other places to get money like from a bank, credit cards, line of credit on your home. All of these options are cheaper and likely better than a loan on your lawsuit settlement.
Pre-settlement funding companies advertise a lot and make it look simple and fun to get money from them. Read “The Truth about Lawsuit Loans” and decide for yourself. There are some reputable pre settlement companies but they are hard to find and you still need to be informed. Loans, lawsuits and desperate people really should not mix.

Lawsuit Advance Loans

A lawsuit advance loan is not a loan it is just an advance on the settlement of a case. People often call lawsuit advances – loans but they are not. Advances don’t have to be paid back like a loan would and are contingent on the outcome of the settlement they were paid on. Any sort of litigation funding is expensive and you should read “the truth about lawsuit loans”.

People who have pending personal injury cases often exhaust all of their available finances and become somewhat desperate. These people often look to get an advance on the anticipated settlement payout, the problem is the lawsuit financing companies are not always reputable and will take advantage of the injured persons desperation. People who are looking for advances, loans, or other funding options need to educate themselves before signing anything. The pre-settlement funding industry is largely unregulated and there are many pitfalls for the unsuspecting buyer. Lawsuit settlement loans should be avoided and if absolutely necessary, then reputable financing companies should be used and still questioned.

Litigation Funders

Litigation funders are people or companies who invest in lawsuit settlement outcomes by advancing money in exchange for a portion of a future settlement. A litigation funder will review the facts of the case and decide the likely outcome and the likely timeframe for the outcome and offer money now for the future right. If the litigation funder does not think the case is a winner they will not offer anything. Litigation funders are in the business to make money so they will often offer low amounts of cash in exchange for large portions of the future settlement. If you are thinking about getting cash advance for your lawsuit settlement you must read “The Truth About Lawsuit Loans

Are Lawsuit Loans Ethical?

Shortest answer is… Depends.


A short but detailed answer is…. It depends on a lot of factors. If we take the premise that educated and equally informed adults can enter into contracts then lawsuit loans or pre-settlement funding agreements can be ethical if both parties are equally situated. The main problem with most settlement funding companies is that they know they have an expensive product and they are not required by law explain the terms of the contracts so to help sell the cash advances they make them seem cheaper than they are by using confusing financial terms. In cases like this both parties are not equally situated or equally informed so lawsuit loans sold like this would not be ethical.


If a reputable pre-settlement funding company will answer all of the customers questions and explain all the terms and allow some negotiation on the contracts then it would be an ethical contract. Law suit loans/ settlement funding or whatever other name you want to call this product is basically a company agreeing to give cash in exchange or in consideration of a portion of a future settlement. The portion of the future settlement will be equal to the amount of cash give plus fees and interest. The company justifies the high interest rates and fees because there is a chance that it will own a portion of a settlement that is worthless if the case loses. The rates are high because of the risk and the industry norms. If all of this is explained and clearly written out a company can ethically sell this product to an informed adult.

Reputable pre – settlement funding companies.

How do you know if you have found a reputable lawsuit loan company?

If the company will take the time to honestly answer your questions and does not try to hide how expensive pre settlement funding can be you are probably on the right track.

If you are asking yourself this question you obviously need the money and have read all of “The Truth About Lawsuit Loans” page and still want to proceed, but want to in the smartest and best way. Lawsuit loans / pre-settlement funding is expensive, and reputable companies will be up front and transparent with you regarding the cost and fees. Most lawsuit funding companies do not have the best reputations and are actually infamous for being sleazy. Just because the industry on the whole has a bad rap does not meant that good honest fair funding companies do not exist.

You will know you have found a reputable  and trustworthy company when they don’t hesitate to answer your questions and will explain anything further.

Companies with a good reputation for honesty will be glad to answer the following

You should ask what the rate is and is it being quoted in annual percentage rate (APR).
You should ask how the rate is calculated and how often it is compounded.
You should ask what fees there are and how are they paid back.
You should also ask if you can pre pay the advance back before your settlement finalizes
You should finally ask if any terms of the contract are negotiable.



If you find a company willing and able to answer these question plus any others you can think of chances are you found a company that is at least honest and cares about being truthful. Even funding companies with a good reputation can still be expensive. If there is any other possible way of getting the funds you need you should explore those first before trying to get pre settlement funding.

Is there a difference between lawsuit loans, lawsuit funding and pre-settlement funding?

There really is no difference, these three names all refer to the same product. The term lawsuit loan is used because a loan is the easiest way to describe what is happening, somebody gives you money now and it gets paid back later. These are not loans because they are contingent on the outcome of the case and may never get paid back. It is just easier for the people selling the product to explain it as a loan. Lawsuit funding and pre-settlement funding are the same again, money is advanced to a plaintiff and will be repaid along with interest and fees out of the final settlement.

The Lawsuit Loan Facts page explains how these products work and why they can be a bad choice for all but a few unique plaintiffs.

How do I get a lawsuit loan?

First, you must be represented by an attorney and your case must be pending.

If this is the case you contact a pre-settlement funding company and give them the basic information about your case and the contact information of your attorney.

The funding company reaches out to your attorney to get the required information on the case. Hopefully you have found a funding company with a good reputation.

Your attorney will talk to you about getting permission to share information with the funding company. Your attorney should try and talk you out of a getting any sort of cash advance because they are often bad products.

If you are positive you need the money and understand what the fees are and the interest rates, your attorney will release your information to the funding company.

The funding company will have its team of experts evaluate your case and the potential outcome. If the company thinks your case is a winner and you will be getting a large enough payment they will offer to advance you money.

The money will be wired to your account or lawyer very quickly after you sign the needed agreements.

Your case finally settles. If you lost you get to keep all of the money that was advanced to you from the settlement company. If you won part of your winnings will go to the attorney for taking the case, and another part will go to pay the pre-settlement funding company. You get to get what is left. The amount that gets repaid to the funding company depends on the amount you were advanced and on the interest rate, fees and length of time you were advanced the money.