- November 29, 2018
- Jeffrey A. Rubin
Third Party Financing For Your Lawsuit
There are many different opinions out there about third party financing for a lawsuit. Moreover, third party funding sometimes gets bad reviews due to the high rates of interest charged. When you hear that annual rates are 65%, 75% and higher why even bother? There are always two sides to every story and we hope to change your mind. See here if third party financing with Redwood Funding Group is right for you.
How Do You Qualify?
Qualifying for third party funding has nothing to do with your credit rating. It is not related to whether you have a job or a steady stream of income. Finally, nobody cares if you’ve been turned down for a mortgage or have other debt related issues. It is very simple. You qualify for third party financing if you have a good lawsuit. The third party funding company wants to feel that you have a pretty good shot at making money in your lawsuit so that they will be repaid. That’s it. If you took a loan from a bank, whether your house goes up or down in value you are still going to owe the bank money. In third party financing you only pay the lender back money if you win your lawsuit or settle.
No Credit Or Collateral Needed:
Another benefit of third party funding is that you don’t need a good credit rating to qualify. Unlike going for a bank loan where you have to prove how solvent you are, third party financing doesn’t care. To be it clearly, your case is your collateral. By putting up nothing to get your third party funding you don’t lose anything if your lawsuit loses. The better your case the more you can be advanced. Lastly, you only pay the money back if your case settles or wins at trial. Furthermore, depending on the third party financing company you only pay interest on top on your loan.
Is It Worth It?
Is it a better idea to take out a home equity loan or to use your credit cards to pay your bills arising from a lawsuit? It all boils down to what is going to cost the most. Additionally, not everyone will qualify for a bank loan or has the credit line to max out your credit cards. Third party funding enters the picture when other and sometimes more expensive options can’t help. People who are in accidents often are out of work or have huge medical bills that they can’t afford to pay. Third party financing can quickly solve those problems and let you breathe easier.
Fess Fees Fees
Not every car is the same, not every house is the same and not every third party funding company is the same. Do not use the first and only third party financing company that you learn about. Compare apples to apples and make an educated decision. Some companies charge fees in different forms to do your third party finance. Some will charge an application fee, an underwriting fee or a processing fee. Others might charge a closing fee or a brokers fee. Do not be fooled into thinking all companies are alike. Redwood Funding Group doesn’t charge any fees in any form, ever.
Third party funding companies often advertise that the interest they charge is, for example, 4%. Wow, that’s might sound great. You have to read the fine print and ask what does 4% mean. What is usually mean sis 4% monthly compounded. That’s a whole nother ballgame, as they say. 4% monthly compounded is around 70% a year!. Therefore, keep away from those companies. Redwood Funding Group does not compound the interest, ever. We charge a fixed 15% rate for each six months that you have the money. That’s all.
Wires and Federal Express
Third party financing companies will also charge you to send you your money. However, there’s charging you money and then there’s overcharging money that they shouldn’t. If a wire costs the third party funding company $30 why do they charge you $139. If Federal Express costs them $35 to do an overnight delivery why are they adding a surcharge to you of $80? Hence, you are probably already paying them too much in fees and interest but for wires as well? Redwood Funding Group charges you whatever the bank or Federal Express charges us to send you your money.
In conclusion, it should be pretty clear that whatever third party funding company you plan on using for your lawsuit, whatever third party financing company your lawyer recommends, compare them to Redwood Funding Group and see why we are the highest rated third party finance company in the Nation!.