- September 27, 2018
- Jeffrey A. Rubin
Accidents & Accident Funding Loans:
Have you ever taken a trip out West? Have you driven to places like Las Vegas? Los Angeles or Reno? Similarly, you must have seen all those billboards for lawyers advertising what special deals or skills they have to offer. Accident funding loans are quite similar to those lawyers hawking their firms on the road. Consequently, as you pass them by on the road you wonder how do I choose one from the other. The same is true for Accident funding loans and accident loan funding.
Lots to Choose From:
Many accident funding loan companies lure customers in with several different advertising techniques. Likewise, some companies tell you how large they are and how much money they have advanced to accident victims. Probably, others will tell you about all the different kinds of loans they make-structured settlements, class actions, pre and post settlement advances. However, most companies will sleekly tell you that they are the cheapest accident loan funding company or some enticing reason why you should use them.
Cost, Cost, Cost to Borrow:
It seems like there are hundreds of funding companies in this country. Anyone can do a Google search and find pages upon pages of results. There are many search terms as well: Legal funding, accident funding, pre settlement funding, lawsuit funding or legal finance. Therefore, all of these accident loan funding companies want you to buy their product. There is one simple reason to engage with an accident funding company: Cost! That is to say, what is it going to cost you to pay back the advance after a period of time.
Compound Interest Killers:
There are many ways that accident funding loans companies make money off of a borrower. First of all, these loan companies make their money is by charging interest on the money you borrow. Furthermore, some companies charge compound interest and some charge a fixed rate. Compound interest is interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan. This means that the interest grows and changes based upon what it was the previous period. For example, if the interest is 2.99% a month, every month that rates grows until by the end of twelve months you are paying about 65% interest for the year.
Fixed Interest Saves!:
Fixed interest on the other hand does not change for any period. For example, if the interest rate is 15% fixed for 6 months then after the six month period the interest is still 15%. Obviously a fixed rate is both easier to figure out mathematically and is clearer to understand. Hence, it doesn’t change for the period assigned to it. Redwood Funding Group has one fixed rate for any amount of money that you may be advanced. 15% fixed every six months.
So Many Fees:
Accident funding loans companies also make their money by charging a fee for the advance. Fees can be assigned in many places in the process. There can be a processing fee, an administrative fee, underwriting fee, opening and closing fee. What a lot of accident funding and accident loan companies do is take those fees and add them to the principal amount you are borrowing. They then make you responsible for the principal and the fees when applying a compound rate of interest upon it. All of these numbers and ways to make money are confusing, blurry and wrong. Redwood Funding Group has no fees in any form whatsoever.
All companies like to offer special and fast ways to get you your money. They might offer you a wire transfer, Western Union or Federal Express. All of them will impose a surcharge for those methods of delivery. For example, while a bank might charge the accident funding or accident loan company $30 to do a wire transfer, the funder will charge you, the borrower, $80 for that wire. Furthermore, they might add that delivery surcharge to the principal and compound interest. Redwood Funding Group charges you to deliver the money what a bank wire or Federal Express charges.
Redwood Funding Group:
After you consider all of the above there is really only one accident funding and accident loan funding company to use: Redwood Funding Group.