Pre-settlement funding, also known as lawsuit funding or legal financing, is a type of financing that helps plaintiffs and attorneys pay for expenses related to a legal case. It is typically offered by companies that specialize in this type of financing and is intended to help plaintiffs and attorneys bridge the gap between the time when they incur legal expenses and when they receive a settlement or judgment. If you are considering obtaining pre-settlement funding, here are some tips for negotiating the lowest possible cost:
- Shop around: Different pre-settlement funding companies may have different rates and terms. It is a good idea to get quotes from multiple companies to compare the costs and terms of each offer.
- Understand the fees: Pre-settlement funding companies typically charge a variety of fees, including an origination fee, a monthly fee, and a fee based on the amount of funding you receive. Make sure you understand what each fee is for and how it is calculated.
- Negotiate the terms: Some pre-settlement funding companies may be willing to negotiate the terms of their financing. You may be able to negotiate a lower interest rate, a longer repayment period, or a lower origination fee.
- Consider alternative financing options: In addition to pre-settlement funding, there are other types of financing that you may be able to use to pay for legal expenses. For example, you may be able to borrow money from a bank or use a credit card to pay for legal expenses. These options may have lower costs than pre-settlement funding.
- Get a second opinion: If you are considering obtaining low cost pre-settlement funding, it is a good idea to get a second opinion from an attorney or financial advisor. They can help you understand the costs and risks of pre-settlement funding and advise you on whether it is the best option for your situation.