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Lawsuit Loans
by: Wensley McKenney
Lawsuit Loans which are also
known as pre settlement cash advances allow a financially
strapped plaintiff to access a portion of their future legal
settlement to pay today’s 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 process which can financial ruin
an injured claimant who is looking for a fair settlement offer.
Companies like Global Financial
(http://www.glofin.com)
offer cash advances against all types of Personal Injury &
Worker Compensation claims. It works like this: Global Financial
will review the merits of an applicant’s legal claim and
determine the chance & size of a financial recovery. They
then offer the claimant a small percentage of the total value of
their claim in return for an assignment of a portion of the
potential future proceeds in the claim. If there is no financial
recovery from the claim then the funding company receives
nothing. This makes lawsuit loans very risky and actually a
venture capital investment rather than an actual loan as the
names suggests.
The fees charge by lawsuit loan
companies can vary dramatically but it is usually best to stick
with the larger companies, like Global Financial (http://www.glofin.com)
because they work on larger volumes and lower pricing. Usually a
funding company will charge either a monthly fee or a flat fee
depending on the risk associate with the claim.
It is my personal opinion that
a claimant should ask themselves one question before applying
for a cash advance against their pending claim. Will the advance
that I receive pay immediate and necessary living expense? If
the answer is yes then you should accept a cash advance and
continue with your legal claim. If the answer is no then it
might be wise 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 make 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
financial strength to wait for a higher and fairer settlement.
Lawsuit Loans have been
trademarked by Global Financial as "Lawsuit Insurance"
because they offer insurance like protection to plaintiffs in
the event that their claim is unsuccessful. If a plaintiff takes
a cash advance against their pending legal claim and their claim
is unsuccessful then they get to keep the money that was
advanced to them. Thus 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.
About The Author
Wensley McKenney is a graduate
of Tulane University and has 15 years of experience in the
financial and legal fields.
Lawsuit Insurance is a
trademark of Global Financial Credit, LLC, http://www.glofin.com
wensley@glofin.com
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