Can I Switch Funding Companies if I Already Have a Loan?
3 min read read
Published Apr 2, 2025
Yes, It's Called a "Buyout"
Many plaintiffs realize too late that they signed a contract with a high-interest predatory lender. They come to us asking, "Can I switch to World Legal Funding for a better rate?" The answer is yes, but it involves a specific process called a Buyout (or refinancing).
Because the first funding company has a lien on your settlement, we cannot just ignore them. To take over your account, we must first pay off the total amount you owe them. Once they are paid, their lien is removed, and we become your new funding provider.
When Does a Buyout Make Sense?
A buyout is not always the right move. Because we have to pay off your accumulated interest with the first company, your starting balance with us might be high. However, it makes financial sense in two specific scenarios:
1. To Stop the Bleeding: If your current lender charges monthly compounding interest and we offer simple interest, switching now could save you thousands over the next year, even with the buyout cost.
2. You Need More Money: If your current lender denies your request for more funds but your case value supports it, we can buy them out and provide the additional "fresh cash" you need.
How the Process Works
The process is seamless for you. You apply with us and tell us you have a prior advance. We contact the other company to request a "Payoff Letter," which states exactly how much you owe.
If the numbers make sense and we can offer you a better deal, we wire the money to the old company to clear your debt, and then wire any additional funds directly to you. Your attorney simply updates their records to show that World Legal Funding is now the sole lienholder.
