There are lots of companies that you can choose from to apply for a lawsuit settlement loan.
Often clients apply and they get denied because they often do a lot of common mistakes when it comes to applying for a lawsuit loan.
These simple guidelines will give you the best chance of getting their lawsuit loan approved.
Tip #1: Make sure you have already hired an attorney
Lawsuit lending companies will not give you a settlement loan until you have hired an attorney.
The reason you need one is that it is how they can ensure that they get paid back on the lawsuit loan once the case settles.
The way it works is that the insurance gives the money to your attorney who then pays back the funding company.
When looking for an attorney, make sure to take your time to find the right one.
There are many attorneys out there who are looking for the quick buck and will not fight for every penny that you deserve.
Make sure to ask lots of questions and see what experience they have.
Very often lawsuit settlement loan companies will give more money to a client when they know that they have a great attorney.
Tip #2: Call your attorney after you apply
After you apply with the pre-settlement funding company, it is especially important to call your attorney or paralegal and let them know that you’ve applied with the funding company.
We understand that you need the lawsuit loan right away, as does your attorney.
The challenge is that your attorney’s law firm is remarkably busy fighting for their clients and gets lots of phone calls from many different clients and vendors.
So, when your funding company calls, they may not realize the urgency of the matter and that you need the money right away.
Remember, the faster the lawsuit loan company gets the funding, the sooner they can get you the money. When you call them before they do, they usually send the documents for the settlement underwriter to review immediately and can get you the settlement loan as soon as you need it.
Tip #3: Wait 30 days after your accident
As soon as an accident happens you might end up out of a job and your bills start piling up.
Very often clients call a few days after the accident to get a lawsuit loan.
We get it. The bills start piling up right away and it is exceedingly difficult to keep up with them.
Lawsuit loan companies would love to give you the funding right away. Here is the challenge that presents itself.
Given that it takes some time for the police report to be generated and other medical documentation, it makes it exceedingly difficult to get the client the lawsuit settlement loan. Your attorney will always request the documents right away.
Once you hit the 30-day mark, you should be good to go and get funded right away.
Tip #4: If you’ve been denied, don’t give up
After you have an accident and the bills start piling up, you may call a company and get denied. Listen to this important tip.
Apply with another company even if you have been denied.
If you have applied somewhere and have been denied, do not stop trying.
All the lawsuit loan companies have vastly different lawsuit loan guidelines and very often when you apply elsewhere for a lawsuit loan and get denied, others with looser lawsuit loan guidelines will approve you.
Some lawsuit loan companies will advance 5 percent of what they believe you will end up settling for while others will go up to 25%.
There are also underwriters that are simply very conservative and want every single document in to review before they will make a funding decision. Others will be more lenient and as long as they know the attorney’s reputation, they will require extremely limited documentation.
So, if you have been denied a settlement loan in one or two places do not just give up and apply again with another lawsuit loan company.
Tip number #5: Make sure you use a reputable company
Be incredibly careful with which company you get your lawsuit loan from.
As it is in all aspects of life when applying for a lawsuit loan, do you research and make sure you use a very reputable company.
All sorts of companies pop up for a few months, charge exorbitant rates, and then disappear.
You do not want to get a settlement loan from these types of companies.
They will charge exorbitant fees, deduct fees from the approved amount, and then sell your case off.
You should go online and make sure that they have five-star lawsuit loan reviews.
Ask if you can speak with some clients who have received settlement loans from them. Do your research to make sure you are dealing with good people.
Tip number #6: You can get more than one lawsuit loan
That is right.
Most people believe that they can only get one lawsuit loan. That is simply not the case.
Even if you have received a lawsuit loan from someone once, you can always get an additional settlement loan.
You can call them and see if they will give you an additional settlement advance. They may ask you if anything has changed in your case or if it has moved forward in the process and will take it back to their lawsuit loan underwriter and see if they can get you an additional advance.
Even if the original company denies you additional funding, you can always call another one who will approve of you.
The reason people believe you cannot have a second settlement advance is that two companies cannot give you a loan in the same case. However, they have figured out an easy solution.
They will simply buy out the original advance and give you money on top of the buyout against your lawsuit.
As an example, if you owe $5,000.00 and need an additional $5,000.00 advance, they will pay off your old lawsuit loan and give you the additional $5,000.00 for a total lawsuit loan of $10,000.00
Tip number #7: Take only as much settlement funding as you need now
When getting a lawsuit loan, only ask for the amount of money you need to get by now.
Some underwriters will look at a large advance that you are asking for and will not come back with a lower number.
Therefore, you want to request the amount that you must have now. You can always get more money later.
Now that you know that you can always get a second and a third advance, why start paying interest now when you can postpone it.
It is important that you understand, your case usually gets more valuable as it progresses for a few reasons.
First, as you continue to treat your injuries, the medical bills grow.
As they grow it shows that you have been more severely injured, and they will likely pay you more. It also shows the underwriter that you are committed to the case and will not just abandon it.
Second, as you get closer to resolving, the underwriter would be willing to give more money because they realize that they will not need to wait exceedingly long to get their money back.
Therefore, you have a better chance of getting more settlement funding as the case matures and gets closer to a resolution.
Tip number #8: Make sure the funding company gets the required documents for your attorney.
It is crucial that you follow up with your attorney daily.
Filling out an application is only half your process of getting your lawsuit loan funds. It is crucial that you follow up with your attorney or their paralegal to ensure that they send the requested documentation right away.
Your attorney and staff are remarkably busy working to get all of the money that you rightfully deserve.
You were injured in an accident that was not your fault and you deserve to get what is rightfully yours.
Because they do have a lot on their plate, often, sending the documents required to get you the settlement loan falls through the cracks.
Therefore, if they do not send the documents that are needed to evaluate your case in a day or so, it is suggested that you gently follow up with them so that they understand the importance of you getting the money now to pay your bills.
Tip number #9: Read the fine print of your settlement funding agreement
As we had mentioned earlier, you need to make sure you are dealing with a reputable company.
Even if you do, make sure you read the fine print. Some company lawsuit loan agreements can be very tricky. You should really review it with your attorney.
One thing to watch out for is, very often companies charge you the fees in advance to send you the settlement funds. As an example, if they give you one thousand dollars.
They might charge you as much as $100 to expedite fee to send you the funds right away.
So instead of adding to the agreement so that you pay in at the end, they deduct it from the number of settlement funds they will send you.
In this case, instead of sending you one thousand dollars, they send you nine hundred dollars and keep the one hundred for the expediting fee.
With all of the hardships and challenges you go through after being injured in an accident, the last thing you want to do is get nickel and dimed by these settlement loan companies and not have enough funds to pay your bills
Tip #10: Speed is everything
After someone gets injured in an accident, things can add up very quickly.
Perhaps you lose your job because you are injured. And that’s when the bills start piling up.
Medical bills come in, the rent becomes due, the car note, the electric bill is overdue. This is the last thing you want to deal with after an injury.
When you call a lawsuit loan company, you want to make sure you get the money fast to cover all of these expenses.
The insurance company knows you need the money so they give you a low ball offer to squeeze you out of the fair settlement.
There are some companies that may be very good at getting clients lawsuit loans.
The challenge is that they don’t get the fact that you need the money now!
What good is it if they give you a settlement loan in two weeks when your rent, car bill electric bill or medical bills are due today.
Make sure that the lawsuit loan company has a policy on getting the pre-settlement funding to you quickly.
Ask them what methods they use to get you funding. Regular mail can take 5-10 business days to get to you.
What if they only offer wires to bank accounts but you do not have one. These are all things to review and discuss with the lawsuit loan company before starting an application process.
Where Should You Start
There are so many places that offer lawsuit loans, but some are going to scam you and run.
So be wise on your choices, do a lot of research, ask around. Delta Lawsuit Loans has established itself as one of the trusted accident and injury lawsuit loan companies in the United States.
If you need to get a loan for your car accident or medical injury, start with us.