If you’re engaged in a lawsuit and need financial assistance while your case is pending, a lawsuit loan can tide you over until your case is resolved. Lawsuit loan companies lend money to plaintiffs so they can continue to pursue their pending lawsuits without worrying about how to pay medical bills and other living expenses amid insufficient income. Lawsuit funding companies agree to lend money in exchange for a hefty return on their investment when the claim is settled.

However, it can be challenging to separate the reputable lawsuit loan providers from the fly-by-nights and to decide whether a loan settlement company is the best fit for you and your case. Do not get conned out of your entire settlement just for needing some upfront cash while you wait for your case to get resolved.

Here are a few criteria to consider while finding the best lawsuit loan company for you. Recognise the sheep from the wolves with these tips.

Low Interest Rates

After evaluating and underwriting your case, a lawsuit loan company will set the interest rate applicable for you. If a company charge 30-40% interest, or lends in compound interest, it can easily mount to a mammoth interest that’s difficult to pay back. Hence, find a lender that charges low interest rates and little to no compound interest. Make sure you clearly understand the interest rates before signing any paperwork.

Easily Accessible and Responsive

Filing a lawsuit is a stressful process, and the last thing you need is worrying about not being able to get through to your lawsuit loan company. Before you choose a pre-settlement loan company, make sure you understand how quickly the loan advance will be available to you. A trustworthy company should be easy to reach by phone, and get your questions or problems resolved.

Clear Loan Terms and Conditions

Look for a company that offers simple, clear and concise terms and fee structure for its loans. Make sure you understand all terms and conditions before signing the agreement. Never work with a company that won’t answer your doubts; some companies sneakily try to slip additional fees into the deal, and these fees can be easy to miss.

Zero Application Fees

A trustworthy lawsuit loan company will not charge you just to look over your lawsuit to evaluate if you qualify for loan. Do not select a company that charges application fees before you’re even become their client.

Risk Free

A good lawsuit loan company will offer “no recourse funding” – meaning you should not be required to pay back any money if you lose your lawsuit. Make sure you also clarify beforehand that you shouldn’t end up owing the company more money than the worth of your settlement or award amount.

Works Well with You and Your Lawyer

A trusted lawsuit loan company will build a working relationship with you your lawyer regarding your lawsuit evaluation and underwriting.

Whether you’re in the midst of a personal or business lawsuit, the above tips will help you do your research and zero in on the best funding solutions for professional services & law firms.