Lawsuit Loan Best Price Guarantee from Fair Rate Funding
There is no shortage of articles regarding the cost of lawsuit loans compared to other types of financing. Much of the conversation revolves around lawsuit loan rates and fees. By offering a lawsuit loan best price guarantee, plaintiffs who need immediate financial support can compare contract terms and be guided accordingly.
In this post, we explore the cost of lawsuit loans as we try to understand the practical value of a lawsuit loan best price guarantee.
Every Lawsuit is Different – The Challenge of Pricing
The pricing of every product or service must include the cost of production. A lawsuit funding company must calculate the cost of capital, marketing, operations and losses into the price of a lawsuit loan. This is basic business.
The wrinkle with regard to lawsuit loans is that every lawsuit has its own unique set of facts and circumstances surrounding it. This fact makes loss calculation a bit tricky. The way around this is to engineer enough room in the profit margin to account for a potential spike in unforeseen losses.
Although each case is unique, there are certain types of cases that historically were less risky than others. The pricing for lawsuit loans reflects the potential losses as well as an acceptable return on the money spent in providing these specialty finance products to plaintiffs.
A Way to Increase Profit
Since competitive pricing offers the lowest profit to businesses, there are a few of ways to increase profit. The primary way is to increase the amount of customers served.
In the lawsuit funding arena, an additional way is to fund only those cases that have the highest probability for success. Remember, lawsuit loan pricing is what it is. To get a greater return is to fund less risky cases – enter the “Lawsuit Loan Best Price Guarantee”.
Lawsuit Loan Price Guarantee
If you shop around online for a “lawsuit loan near me” or similar search, you will eventually come across a lawsuit funding company with a button or banner touting their lawsuit loan best price guarantee. Most will explain that if you get a written funding offer from another company, you can show that offer to the funder offering the guarantee and it will beat the terms of the competitor’s deal or you get some amount of money.
For example, our lawsuit loan price guarantee reads:
If Fair Rate Funding approves your application for a cash advance and another legal funding company sends you a written contract to advance the same amount at a lower total cost, we will beat that deal or pay you $250 guaranteed!
In other words, if you show us a contract, we will either beat the deal in terms of cost or pay you $250.00. Seems like a sweet deal. It actually is! Here’s why:
- The client can get a better deal.
- The new company gets a case that another funder already approved.
The only party that potentially loses is the old company. They are the ones who spent their time and efforts processing the case for funding and provided a written offer. Believe it or not, providing lawsuit loans costs money, time and expertise. No business wants to waste these things. Anyone can see the reasons why.
Yet, the original funder could have provided their best deal in the first place. And if their terms are simply not competitive, then as a business, they should take steps to remedy this situation.
Still, lawsuit loan price guarantees can be a valuable tool for plaintiffs to make sure they are getting fair treatment.
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Why Do Companies offer a Lawsuit Loan Price Guarantee
Basically, lawsuit loan price guarantees are legal loan case origination strategies designed to capture leads for potential business. Lawsuit loan leads are fairly expensive on the internet, and less than 20% of these leads result in approvals. For a funder to capture a case that is already approved by another funding company, that’s a marketing victory.
Are Lawsuit Loan Best Price Guarantees a Marketing Ploy?
Best price guarantees for lawsuit funding are a marketing strategy, not necessarily a marketing ploy since the client is in a better position if the guarantee is engaged. Either the client gets a better lawsuit loan contract, or the client gets cash on top of the original funding contract that is so competitive, the second funder would rather pay money than beat the deal.
Are There Risks to Lawsuit Loan Price Guarantees?
Best price guarantees are not without risk however. There is a slight chance the original funder pulls the offer for funding. The chances of this happening are slim but if the second funder takes an inordinate amount of time to underwrite the file, it’s possible.
Most funders will not leave an offer for funding open indefinitely. Most will follow up continuously until the deal is closed or the client refuses the offer. Thus, when dealing with a lawsuit loan price guarantee – time is of the essence.
Conclusion and Takeaways
Lawsuit loan best price guarantees are a good way for clients to see if they are getting the best possible lawsuit loan for their case. If you have a existing offer and are not sure if the terms are competitive, it’s worth contacting us to make sure. Give us a call anytime at 888-964-2224 and we will answer any questions you may have.
Thanks for your interest in lawsuit loan price guarantees.
