Superpowered Solutions

LawFi is the pioneering inventor of the “Legal Fee Loan.” A legal fee loan is customized to finance legal fees and related costs of your specific legal matter. We create unique features and terms of the loan based on evaluating you and your legal case.

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LawFi loans are smart installment loans. We use proprietary algorithms that know the difference between one legal matter and another. For example, a non-contested divorce case with no assets, children, or disputes will require a much lower loan amount and payback term because the average case should be final within 4-6 months and only cost a few thousand dollars. On the other hand, a complex contested divorce case involving children, assets, and disputes will take much longer to litigate and resolve. It will cost significantly more than a non-contested divorce. Our unique loan decision engine knows the difference. Our system knows how to properly set the loan amount, payback term, conditions, and pricing of the legal fee loan. It’s a specialized loan explicitly customized for each borrower’s legal case and creditworthiness.    

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Like LawFi, other personal installment loans and buy now, pay later (BNPL) services allow you to pay for something over time, but they are not customized legal fee loans and differ in rates, costs, and how you receive the money and make payments.

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Installment loans

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You receive a lump sum directly from the lender and pay it back in regular installments over time. These payments cover the original amount borrowed plus any origination fees, interest charges, and fees, such as late fees. Installment loans can be a good option for covering a large expense, having predictable payments, and building your credit.

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Some benefits of installment loans include:

• Lower interest rates: Installment loans often have lower rates than credit cards and lines of credit, and some offer fixed interest rates.
• Predictable payments: Fixed interest rates make payments easier to calculate and budget.
• Build credit: Making on-time payments can help improve your credit score.
• Refinancing: If interest rates drop or your credit improves, you might be able to refinance your loan, which could lower your monthly payments or shorten your repayment schedule.

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BNPL

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BNPL payment options are this generation’s layaway. In the past, if you didn’t have the cash to purchase something, the store might offer a layaway payment option. The store will agree to hold the product while you pay (interest-free) over a short period (weeks or months) and release the product to you once you complete the layaway payment plan. With BNPL, you can buy something now and pay for it in smaller amounts over time (usually "Pay-in-Four" or Six months), but the store gives you the product upfront while you make payments.

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Some benefits of BNPL include:

• Split payments: You can break up the purchase price of a product or service into more manageable payment amounts you pay over time. Usually, a short time.
• No credit check: You might be able to get financing without a credit check, but most BNPL services will conduct some level of identity verification and credit analysis.
• Zero Interest - 0% financing: If you make timely payments, you might not pay any interest.

However, both traditional installment loans and BNPL services have some potential drawbacks:

• Installment loans: You might have to pay higher interest rates and fees if you have bad credit. You might also need to reapply or refinance if you need more money.
• BNPL: You might be tempted to overspend. You might have to make a down payment. You might also be charged late fees if you miss payments, and BNPL could affect your ability to apply for other loans.
  
  ‍In addition, BNPL payment options are not well-suited for financing legal services. BNPL is typically only suitable for small loan amounts and must be repaid over a short term. BNPL options often fail to align the loan terms needed with the underlying demands and realities of the legal case financed. Therefore, a BNPL service is only helpful for funding small legal consulting fees, case costs, and small fixed-fee legal matters.    

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LawFi Legal Fee Loans

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LawFi created the first-of-its-kind legal fee loan decision engine capable of underwriting and making customized loans for financing legal fees and costs related to your specific legal matter. LawFi provides flexible and customized legal fee financing options so you can pay over time for the legal services you need. LawFi invented the Legal Fee Loan, and legal fee loans are all we do!

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Some benefits of LawFi legal fee loans include:

• Lower Interest Rates: LawFi legal fee loans have lower interest rates than credit cards, lines of credit, and many unsecured personal loans.
• Loan proceeds paid directly to your lawyer: When you finance through LawFi, the legal service provider receives the loan proceeds directly, and you repay LawFi over time.
• Down Payment: LawFi loans do not require any down payment.
• No hidden fees: LawFi doesn’t hide charges like late fees or retroactive interest in the small print.  
• No late fees: LawFi doesn’t charge late fees, ever!
• No pre-payment penalties: LawFi doesn’t charge pre-payment penalties.
• Simple interest: LawFi loans are simple interest loans, not compound interest financing like credit cards.  
• Predictable payments: Fixed interest rates make payments easier to calculate and budget.          
• Build credit: Making on-time payments can help improve your credit score.
• Can be refinanced or rolled over: If you need additional legal fee loans during your legal case, or if interest rates drop or your credit improves, you may be able to refinance your loan, which could lower your monthly payments or shorten your repayment schedule.

All personal loans through LawFi offer a fixed interest rate and range between 8.9% to 17.9%. The rate you qualify for is based on various factors, including your credit history. However, credit decisions may not be based solely on your credit score. We analyze alternative data sources, not only reported credit data.

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When conducting a personalized assessment, we look at employment, income, and alternative non-reported data, such as how you pay rent and utilities. We also perform a cash flow analysis of your bank data to help us make decisions.

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To remind you, the interest rate is only one factor in the cost of the loan. The total cost of your loan is reflected in the APR (annual percentage rate), which is the annual cost of a loan that includes both interest rate and all other associated fees.

Yes, our origination fee helps to cover the cost of processing your highly customized loan request. A fee of 2% of the loan amount is added to calculate the total loan amount. You do not have to pay the fee out-of-pocket or upfront. We allow you to finance and repay the origination fee over the term of your loan. This one-time, non-refundable fee will be deducted from the total loan proceeds before the requested loan proceeds are delivered to your legal service provider. Please refer to our disclosure to see how it works.

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For example, a loan request for a $2,000 retainer fee is made. LawFi calculates the origination fee as follows: $2,000 x 2% = $40.00. The $40.00 origination fee is added to the $2,000 loan amount for a total loan amount of $2,040. LawFi deducts the $40.00 fee from the total loan amount and sends the legal service provider the $2,000 retainer fee requested and approved.          

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_{* As a reminder, your origination fee helps to cover the cost of processing your highly customized loan request. We calculate the fee by multiplying 2% times the loan amount to determine your total loan amount. We deduct the fee from the total loan amount and deliver the remaining loan proceeds to your legal service provider to cover the legal fee loan amount requested. For example, a loan request for a $2,000 retainer fee is made. LawFi calculates the origination fee as follows: $2,000 x 2% = $40.00. The $40.00 origination fee is added to the $2,000 loan amount for a total loan amount of $2,040. LawFi deducts the $40.00 fee from the total loan amount and sends the legal service provider the $2,000 retainer fee requested and approved.}

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No. When you check your options for offers and rates you may qualify for, we perform a soft credit inquiry. It won’t impact your credit score. Once you accept an offer and submit your application, we perform a hard credit inquiry. Third parties can see this hard inquiry, which may temporarily affect your credit score.

Soft inquiries or soft credit pulls do not appear on your credit report and do not affect your credit score. Examples of situations involving a soft inquiry include lenders pulling your credit to determine your eligibility to prequalify for pre-approved offers, potential employers performing a background check, or landlords checking your credit when you apply for an apartment.

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A hard inquiry, on the other hand, also known as a hard credit pull, is what most people think of when they think of a credit inquiry. These pulls happen when you apply for new credit, such as a credit card, personal loan, or mortgage. Hard inquiries usually appear on your credit report and might temporarily impact your credit score.

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We understand waiting to find out if you’re approved for financing can be stressful. We’re proud to offer an easy, fully digital application process with a fast response. You can check your options in minutes without impacting your credit score. At the end of your application process, you'll know whether you’ve been approved within minutes, not days.