When deciding to use legal funding, the funding partner you choose is an important decision as it can impact your case. The benefit of legal funding is that it can provide much needed financial support or aid during a case. There are a number of factors to be considered to ensure firstly, that the agreement suits your needs and secondly, that the partner you choose is an appropriate one. This is a great guide to help you through the process of deciding which funding partner to use.
Experience and reputation
First and foremost, try to find out a bit about your potential funding partner’s experience and reputation in the industry. If a company has a good industry reputation, it is more likely to be trustworthy and have a history of success and to have had clients who were happy with their service. The best ways to find out about their reputation include, researching the company’s background and reading reviews of past clients. Additionally, an experienced legal funding partner will be able to provide valuable insight and help navigate complex cases.
Terms and conditions
Always review the terms and conditions of the funding agreement very carefully before you commit to any arrangement with a funding provider. Be sure to pay close attention to things like interest rates, fees, and other costs that may be associated. A reputable funding provider will be transparent and provide clear terms that are easy to understand. Ensure that there are no hidden costs that could lead to unexpected financial burdens down the line. Finally, make sure you take the time to understand the repayment structure, for example, it could involve monthly payments or a lump sum repayment when the case is finalized, so you can be prepared for either situation.
Type of funding
There are a number of different forms of legal funding and you need to determine which kind of funding suits your specific needs and circumstances. An example of what to look for are: pre-settlement funding, post-settlement funding, and attorney funding. Pre-settlement funding means that you are provided with funding before the case settles, while post-settlement funding is aimed at those who are waiting for a settlement award (after the case has been decided). Both of these can cover any sort of costs related to your legal claim (including things like medical bills, or loss of wages associated with your claim), whereas attorney funding covers all legal expenses. Choosing the right type of funding is important to ensure that your financial needs are catered for throughout the legal process.
Amount of funding
Assess the amount of funding you require for your case and ensure that the company you choose as a funding partner is able to accommodate your needs. There are some funding companies that have limits on the amount they can or are willing to provide. Understanding what your financial requirements are and finding a partner that can meet those needs are two action items that are important for a successful and beneficial partnership.
Approval process and risk assessment
The process and timeline for approval may be prohibitive if you leave it too late, so be sure to find out what these are upfront and prepare accordingly. While a quick approval process may often be desirable, it is important to strike a balance between a quick turnaround and a thorough evaluation.
The same applies in the case of a risk assessment. You want to have an understanding of how your potential partner intends to assess the risk associated with your case. A reputable partner will take the time to understand the merits of your case, potential damages, and the likelihood of success before approving funding. They will also take into account the strengths and weaknesses of your legal position which will allow them to make an informed decision. This is also important so that you can ensure that the funding arrangement aligns with the potential outcome of your case.
When it comes to legal matters, confidentiality is crucial. Ensure that the legal funding partner respects attorney-client privilege and keeps sensitive information related to your legal dispute confidential. A reliable partner will prioritize confidentiality.
Choose a partner that values clear and open communication, keeping you informed at every stage of the process. Both legal proceedings and funding can be stressful so you want a partner that manages your expectations and is on hand to answer any queries you may have. Great customer service contributes to a positive and collaborative working relationship .This is also something you can look out for in past customer reviews.
Compliance with regulations
Ensure that your partner is aware of and complies with relevant regulations and laws in your jurisdiction. Choosing a reputable company to provide you with funding will help you be sure that this is the case. Compliance ensures that the funding arrangement is ethical and legally sound. Your chosen partner should operate transparently within the legal framework and provide you with confidence in the legitimacy of the funding process.
Consider the flexibility offered by your chosen legal funding partner, both in terms of repayment options and adapting to changes in your case. Unforeseen circumstances often arise in legal proceedings and a flexible partner will be able to handle and accommodate them and work collaboratively to adjust the funding arrangement as needed.
Choosing the right legal funding partner requires careful consideration of a number of factors to ensure a mutually beneficial arrangement. By thoroughly vetting and researching your options for legal funding partners and making sure that you are informed about your case, you will be able to choose the right partner. Remember to always consult with your attorney throughout the process to ensure that legal funding is the right choice for your situation, and obtain quotes from multiple providers to compare and select the best fit for both your circumstances and your case.