- March 27, 2020
Redwood Funding Group never charges fees and never compounds the interest. One Fixed Rate of 15%. Borrow $1,000, You Owe $150 Every Six Months. That’s It!.
If you are a car accident or car accident victim you might need a presettlement loan. Why? because you might have difficulty paying your bills. Consequently, a friend might recommend a legal loan company. The problem is how do you choose among the various different companies. They all have different deals and subsequently, how do you choose among them?
Other Presettlement Funding Co’s:
Many legal loan companies advertise very attractive interest rates and deals. Some of the more famous presettlement funders in the field are: Oasis Financial, BridgewayLF, LawCash, Baker Street Funding and Buckeye Funding. These might be great companies. Hence, let’s see what these or other presettleement loan companies do to with their offers.
The Interest Rate Deal:
Have you seen advertisements offering 2.99% or 3.99% legal funding? Those seem like great interest rates, right? However, you must look further into the fine print. If you do, you might find that the interest rate, while seemingly, is monthly compounded. Monthly compounded interest is interest on top of the previous months principal and interest. 2.99% yearly interest on, say, $1,000 might be around$40. However, 2.99% monthly compounded interest on a $1,000 loan is about $1650! When you compound the interest rate you end up paying double after about 18 months or a year and a half.
Other pre settlement funders advertise fixed interest rates. A fixed interest rate means that the interest that you pay does not grow based upon the prior period. These are the kinds of interest that are easier to understand. Finally, some companies offer fair-risk based rates. Those offers might seem very enticing. Therefore, we suggest you inquire what kind of interest any presettlement loan company has to offer.
The Legal Loan Fee Deal:
Most legal loan and presettlement loan companies charge fees. For instance, they might call it an application fee or administrative fee. Additionally they might charge a fee even during the pendency of your lawsuit and call it a processing or management fee. Those fees are usually based upon the amount of money that you borrow. Some fees are around $100. However, others can be as high as $500.
Here’s the rub. Many accident loan funders will take the fee and add it on top off the principal amount you are borrowing. Here’s another example. On that $1,000 loan you are taking the fee of, say $200, is added to the principal and you will be responsible for interest on $1,200. Maybe that is not much to you but say the fee is $500. You will be responsible for interest on $1,500 but you will only receive $1,000.
We recommend you find a company that charges very low fees or no fees at all!
Lastly, there are incidental costs that will be imposed upon presettlement loan borrowers: The delivery of the funds. All legal funding companies offer bank wires, Western Union, Federal Express. An educated borrower will inquire as to whether there is a charge for this delivery. A bank wire costs about $30 and a Federal Express Overnight also costs about $30. One legal loan company charges as low as $59 for a bank transfer if the loan amount is $750. However, one accident loan company charges $165 if the loan is $3,000 and up! That same legal loan company will charge $30 every six months for “case servicing” and $25 for facsimiles and photocopying. Why?
The Bottom Line:
Anyone taking out a lawsuit loan must ask: 1) Do you charge fees? and for what? 2) Do you charge compound interest? 3) Exactly what will I owe for my lawsuit loan after 1,2 & 3 years. If the lawsuit funding company does not answer the question or avoids it, hang up.
Why Redwood Funding Group:
Unlike most presettlement companies Redwood Funding does not charge fees in any form, ever. Furthermore, We never charge compound interest. Your lawsuit loan interest will be fixed at 15% for every six months you have the loan. For example, if you borrow $1000, you will owe us $150 for each six months you have the money. Finally, to get your money you be charged what we are charged by the bank or Federal Express. Usually around $30. Compare those numbers to the legal funding company above that charges fees, compound interest, $$165 for a wire and $30 for a fax. There is no comparison.
Redwood Funding group rates are unbeatable.
See more about Redwood Funding, here: