What is a “broker”? Is using one a good idea?
A broker is a person who can introduce you to a funding company who may be able to provide you with the advance you are looking for. For the broker’s efforts in helping you complete this transaction, the broker will typically be paid a brokerage or origination fee. That fee is usually either outlined in the funding contract or paid from the funder directly to the broker.
In certain situations, a broker can be an additional expense that may be avoidable. While in other cases, a broker might be an invaluable resource in helping you get the exact type and amount of an advance that you desire. Typically a broker works with multiple funding sources and will present your case to numerous prospective funders until they find you the funding amount you seek. A broker can be very useful because they handle much of the application process for you, while also shopping for the best funding fit for your needs.
When talking with pre-settlement funding companies, it might be wise to ask if the company you are speaking with is a direct funder or a broker on the initial call.