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Being involved in an auto collision is both physically and financially exhaustive. Your medical injuries may hinder your ability to return to work, or you may have significant medical expenses that are challenging to cover. Personal injury cases, particularly those involving car accidents, can take months or even years to resolve.
This is where car accident settlement loans come in! It is a cash advance on your personal injury settlement case, designed to provide immediate financial relief until the case is resolved. Pre-settlement funding is acquired through legal funding institutions. Follow these tips to find the best car accident funding company:
Start Researching Early
This is one of the most obvious tips. Getting started on your lawsuit loan request as early as possible can help you secure the maximum amount with the lowest interest rates.
Moreover, once the medical bills start to pile up, you might find it difficult to keep up with legal requirements, missing your chance of applying for a loan.
Consider Reputation
Next, start researching funding companies on Google, and see if they offer car accident funding. Compare each company’s rating and reviews.
Assess how long they’ve been in business. A company with a long history in the industry might offer better services. Reach out to your personal injury lawyer directly and ask them for recommendations. If your attorney has previously handled car accident cases, they will most likely have connections with funding companies.
Consider their Fees and Interest
Once you’ve shortlisted some funding companies, thoroughly review their fees and interest. While some funding companies charge an upfront cost, others only charge a percentage of the settlement if the case is won. The interest rate is typically within 25% to 60% per year. These rates are higher than those of traditional loan lenders, as the funding company is taking a risk by lending you money.
Compare the fees and interest rates of various companies, and choose the one that best suits your budget. Most car accident loans, such as those offered by US Claims, are non-recourse, which means you don’t have to repay the funding company if you lose the case.
Assess Transparency and Service
Make sure the funding company provides a smooth and transparent process. Opt for a company that has a fast loan approval process. Many funding companies provide cash within 24 hours.
Be wary of companies that offer unrealistic interest rates or repayment terms. Company agents might also try to pressure you into taking the loan. In such situations, consult with your lawyer for expert opinion.
Verify Licensing and Registration
Before signing the funding agreement, verify the company’s licensing and registration. Make sure the company is licensed to operate in your state.
A non-licensed company might increase the interest rate without informing you, and alter the terms and conditions of the agreement. Conducting a little research beforehand can save you from unexpected financial surprises in the future.
Negotiate with Funding Companies
Lastly, negotiate with the funding company for minimum interest and fees. Remember to discuss the repayment term, as the interest can increase over time.
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