Advantages Of A Cash Advance Settlement
Lawsuits can sometimes be long, expensive and stressful. During this period bills are likely to keep mounting. In such a situation, you may be faced with few choices but to opt for a pre-settlement advance. A pre-settlement advance or cash advance settlement is a type of loan that is taken against the proceeds that are expected from a lawsuit. Pre-settlement describes the time period between when a claim is presented by a plaintiff to the agreement of a settlement or verdict.
The common types of cases that are eligible for pre-settlement funding include; personal injury, product liability, medical malpractice, premises, liability, wrongful death, motor vehicle accidents, and general liability. Although a cash advance settlement may be a great option to ride the financial storm that may besiege you during a pre-settlement period, it is still very important that you consider the pros and cons thoroughly before you arrive at a decision. Below are some of the advantages of a cash advance settlement;
1) Helps you get over the tough time:
Of course, the very first advantage is the most obvious; a cash advance settlement assists you financially to get over a tough financial period, particularly in personal injury cases. Such monies can be used to cover living expenses, pay a mortgage, medical bills, and pay your car loan, all during your lawsuit.
2) It helps you negotiate better:
Lawsuits can be long; agonizingly long, particularly when the defendant is not willing to play fair. In cases where you need the settlement to pay for important things such as medical bills and cover for your living expenses, you may be willing to consider a less-than-appropriate figure just to get by.
But with a pre-settlement loan, your financial stress can be eased, giving you the freedom and capacity to negotiate properly and for whatever time the defendant is willing to act stubborn. It can even assist in cases where the lawsuit goes to trials.
3) The loans are non-recourse in nature:
When a plaintiff applies for a pre-settlement loan, the financing company studies the lawsuit thoroughly; its strengths and weaknesses, with the aim of ascertaining its chances of success. If the lawsuit is found to possess a great chance of success, then the loan is awarded to the applicant. This is because the applicant or plaintiff will only have to pay back the loan if they win the lawsuit. If they lose the lawsuit they are not expected to pay the original loan back. This way, the plaintiff can be rest assured that they won't end up being in greater debt after the lawsuit if they lose.
4) It assists in personal injury cases:
Personal injury cases are one of the most popular instances that warrants pre-settlement funding. This is because, in some instances, these injuries cause the victims to be out of work, leaving them cash-strapped and unable to pay their bills. These cash advances enable life to be worth living, while you wait for the final verdict.
In conclusion, pre-settlement advances are unlike your traditional loan that may leave you worse off. With pre-settlement advances, you will only repay if you win the lawsuit. Also, the ease of accessing these loan is equally very remarkable.