- February 18, 2019
- Jeffrey A. Rubin
If you were the victim of an accident in Florida, Georgia or Texas then you might want a cash advance for your lawsuit. What is a cash advance? During your lawsuit you might be out of work or have some reason you have trouble paying your bills. That is where getting a lawsuit loan might come in handy. You might have a great accident case but in the meantime the bills keep piling up. That is where an accident loan will come in handy.
There are many legal funding companies offering money to accident victims. Many of these companies offer slick, attractive advertisements. However, don’t go with the first lawsuit funding company that comes along. These companies are very expensive They can charge very high fees and very high interest. Before you pick a funding company you have to ask the right questions and receive the right answers.
When you are an accident victim you have to pay your rent. You still have living expenses to pay for and you still have to buy food to feed your family. In addition to every expenses you probably have tons of medical bills to pay for. That is where a cash advance from your lawsuit comes in. From the value of your lawsuit there are companies that will advance you money to tide you over until you settle or finish your case. The advantage of a lawsuit loan is that you won’t have to pay it back unless you win or settle your case. If you lose your case then you wont have to pay back your accident loan.
This is where legal funding differs from a bank loan or credit card debt. When you get a loan from a bank, in every circumstance you must pay it back. If you use your credit card to pay for something you always have to pay it back. In both cases you also have to pay the amount you borrowed or spent plus the interest.
When you get lawsuit funding you only pay anything back if you win your case or if you settle your case. That is why these loans are not really loans at all. They are called advances , not loans.
As mentioned, if you are strapped for cash there are other options available. If you qualify you can get a bank loan or second mortgage. Further, if you qualify you can pay bills with your credit card. Easiest, you can borrow money from family or friends. To some however, that might not be the easiest. Additionally, getting a bank loan or a credit card is not available to everyone.
That is where the option of a cash advance out of your lawsuit comes into play. With your lawyers help or on your own you should research the many different lawsuit loan companies out there. These accident loan companies will advance you money either pre settlement or after the settlement of your case. These legal funding companies use a formula to figure out what your case is worth and what percentage they should give you.
Find the Diamond in the Haystack:
When you shop for a car you compare the price of one dealer with that of another. You might even compare the interest rate if you are going to finance or lease your car. Same with lawsuit funding companies. Imagine driving down a main street and you see five or six car dealerships. Same with cash advance companies, there are dozens of them.
There are three questions you must ask of every lawsuit loan company
- Do you charge fees to advance the money? Many pre settlement companies charge a fee to give you the money you borrow. It might be called an underwriting, administrative, processing, opening or closing fee. They might not even call it a fee but some surcharge they charge you just to do the deal.
- What kind of interest do you charge? All cash advance companies make money off of the loan by charging some kind of interest. The slick lawsuit loan companies will advertise, for example, 3.99% interest. That sounds like very little interest and a great deal. Wrong! Ask them if this 3.99% is monthly compounded interest. 3.99% monthly compounded interest is like 75% interest for the year. Yikes! That means if the interest is monthly compounded you are paying back double your advance after about 17 months. Most lawsuit will take more than 17 months.
- Compare the total amount owed for different periods among the different lawsuit loan companies. For example, ask them straight away: “if I borrow $1,000 what will I owe you back after 1,2, or 3 years?”. In response to that questions many accident loan companies will not give you a straight answer. Avoid them, they probably have something to hide. With the ones that answer the question you can now compare apples to apples.
Why Redwood Funding Group:
Let us say straight away: You will not find a cheaper legal funding company in the country and we guarantee it. 1) We don’t charge fees in any form, period. 2) We don’t compound our interest, ever. We have one fixed rate of 15% fixed for each six month period you have our money. For example, if you borrow $1,000, 15% interest is $150.This means for each six month period of time you have our money you will owe us another $150. 1 year, $1,300. 2 years, $1,600. 3 years, $1,900. Compare us to Oasis Financial, Buckeye Funding, Global Funding or Momentum Funding. We beat all of them.
Now for the guarantee. How does Redwood Funding Group prove that we are the cheapest accident loan company in the country? We put the exact amount of money you will owe us back right on our web site. Go to this web site, www.RedwoodFundingGroup.com and compare apples to apples. No company in the country has yet to meet or beat our rates. Guaranteed.
One more thing. Maybe your lawyer never heard of Redwood Funding Group. Maybe your lawyer is recommending a different lawsuit loan company. Ask him to com[pare the amount you would owe each company to each other. If Redwood Funding Group is cheaper ask him why use another company? Go with the best. See our Google ratings. We are number 1!.