Fees for borrowing money

What are the fees for borrowing against a personal injury case.

Monday, February 23rd, 2009 Lawsuit Funding, Pre-settlement Funding

The fees for borrowing money against a personal injury case depend upon the personal injury, extent of the injuries and strength of the claim. A lender will look at several facets to determine the fees for a case. When an application is submitted for lawsuit funding with a company they will require that your attorney present documentation surrounding the case. This information is used to determine the strength of the case. Generally speaking, the stronger the case the lower the rate. Because lawsuit funding is non recourse a lender will want to invest their money in stronger cases. Another determination is the type of personal injury. Motor vehicle accident tend to have better rates than cases like slip and falls or defective products etc. This is because negligence is easier proven. The fees are different for each case and a lender can charge different fees based upon their evaluation of your case. This is why its sometimes a good idea to shop your case amongst several different funding sources.

You would be surprised that many lenders will provide different fees for the same case. The other factor is that some companies specialize in different types of funding ie. structured settlement, attorney loans and commercial litigation financing. Even if a company provides personal injury funding some companies won’t fund every type of personal injury case.

In closing its really hard to quote a fee without looking at the documents surrounding the case.

to whom it may concern:i just learn about your loan program.i wanted to get an idea what your interest rate is if one took out a loan for 3800.i have an injury claim for pinched spinal cord,8 hearniated discs,two destroyed discs,ligament and soft tissue injuries,buisness loss e.t.c. i live in british columbia.thanks for the information.i need this to share with my lawyer.yours truly ron

Ron, rates generally vary depending upon the type of lawsuit. Can you be a little more specific in telling us what type of lawsuit ie. slip and fall, motor vehicle accident etc. Generally speaking the rates for motor vehicle accidents tend to be better than those of medical malpractice or slip and fall cases. When a lender views your application they will look at several different items such as negligence and type of case. If negligence is proven meaning there is a clear cut case, the rates are better. When applying for a settlement loan they will look over the case documents from your case and determine if you qualify for a loan and at what rate. Rates can be as low as 2-5% and near 20% depending upon this information. The better the case the lower the rate. The more riskier (meaning there is a chance you won’t get compensation) the higher the rate.