Lawsuit Loans which are also known as pre-settlement cash advances permit a financially
strapped plaintiff to gain access to a portion of their future legal settlement to pay in these days necessary living expenses. Personal Injury and worker compensation lawsuits can take years to resolve and large insurance companies have the financial strength to legally delay the procedure which can financially wreck an injured claimant who's searching for a fair settlement offer.
Companies like Global Financial provide cash advances against all kinds of Personal Injury & Worker Compensation claims. It works like this: Global Financial will evaluate the merits of an applicant's legal claim and ascertain the chance & size of a financial recovery. They then offer the claimant a small percentage of the overall worth of their claim in return for an allocation of a part of the potential future proceeds in the claim. If there is no financial recovery from the claim then the funding company gets nothing. This makes lawsuit loans very risky and actually a venture capital investment instead of an actual loan as the names recommends.
The fees charge by lawsuit loan companies can vary significantly but it is often finest to stick with the larger companies, like Global Monetary because they work on larger volumes and lower pricing. Usually a funding company will charge either a monthly fee or a flat fee based on the risk linked with the claim.
It is my personal viewpoint that a claimant should check with themselves one question prior to applying for any cash advance against their pending claim. Will the advance that I receive pay instant and required living expense? If the reply is yes then you ought to accept a cash advance and continue with your legal claim. If the answer is no then it could be smart to hold off and wait before applying for a lawsuit loan or cash advance against your pending claim. In addition, a lawsuit loan may be a very important tool when the defendant's insurance carrier decides to come up with a low ball offer for settlement in the claim. You can then use a lawsuit loan as a financial tool to say no to the low ball offer and have the monetary power to wait for any higher and fairer settlement.
Lawsuit Loans have been trademarked by Global Financial as "Lawsuit Insurance" because they offer insurance such as protection to plaintiffs in the event that their claim is not successful. If a plaintiff uses a cash advance against their pending legal claim and their claim is dropped or lost then they get to keep the money that was advanced to them. Therefore the cash advance guarantees that their claim will be financially successful either by way of the cash advance or by way of settlement or judgment.