4 Questions to Ask a Legal Funding Company in LA
Los Angeles is one of the most populated cities in the United States and is known for its many legal cases. A recent news piece stated that Los Angeles leaders have agreed to a lawsuit settlement that commits the city to shelter or housing thousands of homeless people within five years.
If you are a plaintiff needing financial assistance to cover the costs of your lawsuit, a legal funding company may be the answer. When seeking legal funding, it is essential to ask questions and research to ensure you work with a reputable company that meets your needs. Here are four questions to ask when researching a legal funding company in LA.
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1. What Are the Company’s Qualifications?
Lawsuits can be filed for car accidents, medical malpractice, or wrongful death. You need to be sure that the company you’re working with is qualified to handle your specific type of case.
The Los Angeles Times reported that 260 people were killed in traffic crashes on city streets in 2016. Hence, if you or your friends have been in a car accident, you’ll want to find a company specializing in car accident lawsuits.
Some companies will have a team of experts who can review your case and offer you the best possible funding solution.
2. What Are the Company’s Rates?
Lawsuit loan rates can vary significantly from one company to the next. Some loan companies will charge you an upfront fee, while others will structure their rates as a percentage of the total amount you borrow.
It’s important to ask about rates so that you can compare apples to apples when shopping for a legal funding company. Also, ask if any additional fees or charges may apply. These may include hidden costs like processing fees or application fees.
Many companies are open to negotiating rates, so it’s always worth asking if you can get a better deal.
3. What Is the Company’s Turnaround Time?
The application process for a legal funding company in LA is quicker than traditional financial institutions. So it’s important to know the company’s turnaround time. Some companies may be able to approve your loan in as little as 24 hours, while others may take up to 72 hours.
The basic steps to apply for a loan from a legal funding company are as follows:
You’ll need to fill out an application. Once the application is complete, the legal funding company will review your case and decide. In most situations, money will be deposited into your account within 24-72 hours if approved for a legal funding loan.
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4. What Is the Company’s Minimum and Maximum Loan Amount?
It is crucial to understand a funding company’s minimum and maximum loan amount because it will give you a good idea of how much money you can potentially receive. You don’t want to get your hopes up for a large loan only to discover that the company’s maximum loan amount is significantly lower than you need.
Your needs will differ based on the following factors:
- The severity of your injuries
- The number of medical bills you have accrued
- Whether you will need long-term care
- How much time you will have to miss from work
Conclusion
Whether in the market for a legal funding company in LA or elsewhere, these crucial questions will give you a good starting point to determine if a given provider is right for you. Ask about fees, interest rates, repayment options, and the application process.
