When you are filing a lawsuit, one of the most important things to consider is how you will pay for it. Litigation can be expensive, and if you don’t have the funds to cover your costs, you could lose your case. That’s where the commercial form of litigation funding comes in. This type of funding can help you pay for your legal expenses to focus on winning your case. Read ahead to discuss five things to look for when choosing a commercial litigation funding company.
Company’s History and Experience in the Legal Funding Industry
When looking for a litigation funding company, one of the first things to consider is their history and experience in the industry. How long have they been in business? What is their success rate? Do they have any awards or accolades that speak to their quality of service?
The answers to these questions will give you a good idea of whether or not the company is a good fit for you. If they have been in business for a long time and have a high success rate, you can be confident that they will be able to provide you with the funding you need to win your case.
On the flip side, if the firm is new or has a low success rate, you might consider other options.
When looking at a company’s history, it’s also important to consider any complaints that have been filed against them. You can check with the Better Business Bureau or your state attorney general’s office to see if there have been any complaints lodged against the company.
Company’s Funding Criteria
When searching for a funding company, it’s essential to consider its funding criteria. What types of cases do they fund? How much money do they typically lend? What is the interest rate on their loans?
It’s essential to choose a company that will fund your specific type of case. Otherwise, you could end up paying back more money than you borrowed.
It’s also important to consider how much money the company is willing to lend you. If you require a large sum to fund your case, you’ll want to make sure the company is able and willing to provide it.
Finally, when considering a litigation funding company, look at the interest rate on their loans. Some companies charge exorbitant interest rates that make it challenging to repay the loan. Others have more reasonable rates that will allow you to keep more of your settlement or verdict.
Their Turnaround Time for Providing Funding
When looking for a commercial litigation funding company, it’s essential to consider their turnaround time. How long will it take for them to approve your loan and get the money to you?
Some companies can approve your loan within 24 hours, while others may take weeks or even months. If you need the money quickly, you’ll want to choose a company with a fast turnaround time.
On the other hand, if you have the time to wait, you might be able to get a better deal from a company that takes longer to approve loans. No matter what, discuss the timeline for getting funding with the company before you agree to work with them.
The Fees Charged by the Company
It is imperative to consider the fees they charge. Some companies charge upfront fees, while others only charge interest on your borrowed money.
It’s essential to choose a company that charges reasonable fees. Otherwise, you could end up paying back more money than you borrowed. Be sure to ask about fees upfront so there are no surprises down the road.
Finally, read the fine print before working with a particular company. Some companies charge hidden fees that you might not know until it’s too late. By reading the contract carefully, you can avoid these kinds of situations.
The Company’s Customer Service and Support
Lastly, consider their customer service and support. Is it easy to get in touch with someone at the company? Do they have a toll-free number you can call? Are they available 24/7?
It’s essential to choose a company that makes it easy to get in touch with someone. Otherwise, you could end up in a situation where you need help but can’t get ahold of anyone.
By considering these five factors, you can be sure to choose the best commercial litigation funding company for your needs. Be sure to do your research and ask plenty of questions before deciding.