Personal injury suits can drag on for a long time. In the interim, you still need money to keep a roof over your head and food on the table. The most practical solution is to check out different settlement loan companies and see how their programs work.
How to find settlement loan agency that’s right for you? The following four questions will provide insight into what each settlement loan agency brings to the table. Armed with that information, you can make the best choice and hopefully be approved.
Does the Agency Offer Non-Recourse Funding?
Non-recourse funding means that you only have to repay the personal injury loan if you win the case. This is not offered by every settlement loan company. Some will still expect you to repay the debt even if you lose.
While acceptance maybe a little more difficult when non-recourse funding is involved, that’s actually to your advantage. The lender will work closely with your attorney to evaluate the merits of the case. If the lender believes you have a strong chance of winning, then a loan for a percentage of the anticipated award will be offered. Should you end up losing, the lender accepts the loss and will not demand payment.
Are the Interest Rates Competitive and How are They Applied?
It’s important to be clear on the interest rate itself and how it’s applied to the balance. As you receive the data, project how much you would end up paying in interest if it took a year to receive a judgment in your favor. Do a second projection for two years. Your goal is to find a lender who offers terms that amount to less than 50% of what you received.
If you find that it’s hard to get precise figures from the settlement loan company, take that as a sign to do business with a different lender. For example, if you receive a range for the interest rate rather than having a specific rate locked in, there may not be much left after you repay the settlement loan balance. While you do need money now, be careful about where you get it.
What’s the Company’s Reputation?
Even if things seem to look good, it makes sense to spend some time researching the company that has offered you a personal injury lawsuit loan. Feel free to ask for references and follow up with each one. You also want to make use of consumer protection sites and read the reviews left by past clients.
Don’t just look at the rating and assume it means all is well. Delve into the details of each review and find out what people liked best about the lender. You also want to know if there seems to be some sort of recurring issue that many clients mention often. Doing so can help you sidestep a commitment that could end up being bad for you.
What are the Options for Disbursement?
While any settlement loan lender will offer a lump sum payout, that may not be the best solution for you. There are lenders who will set up a series of disbursements. For example, you could arrange to receive a set amount per month. That’s a great solution if you’re planning on using the funds to cover basic living expenses.
The bottom line is that you want to choose the lender carefully. Focus the search on companies that provide the features and benefits that you need. Casemark Financial offers personal injury loan options that may be ideal for you. With the right structure, that settlement loan will be one of the best ways to get through this time and emerge on solid financial footing.