The Importance of Reputation in a Funding Company
In business, performance and reputation are everything. This is particularly true in when it comes to pre-settlement funding. No attorney wants to worry that the funding company it entrusts to help an injured client will not deliver a high level of service. Attorneys rely on funding companies to provide clients fast access to funds to pay immediate and ongoing expenses. They expect funding firms to be honest, open and upfront about funding costs and fully compliant with any regulations.
Reputation Counts. There are probably hundreds of pre-settlement funding companies in the U.S. Yet only a handful are truly open about their costs. Look for a funding company that charges a pre-determined amount, disclosed upfront, as a cost of funding with no hidden fees or complex interest calculations. Most, if not nearly all, do not. Instead, they will charge compound interest on advances that can quickly mushroom or they will tack on expenses hidden in the fine print of their contracts.
Open About Costs. No doubt, settlement advances can be costly since the funding company takes all the case risk and is not expected to be paid back by the individual. Some pre-settlement funding companies don’t want to fully disclose their true fees, afraid they will lose clients if they do. Not surprisingly, when settlement funds are eventually distributed and advance fees deducted, the client feels “blind-sided.”
Instead, select a funding company with a reputation for answering all client questions, going over the full amount paid, assuming their case settles. Armed with this information, clients can then make an informed decision regarding their funding options.