subject: Lawsuit Cash Advances - Things To Consider [print this page] In current years, people who have been involved in personal injury accidents have found that they can obtain a lawsuit cash advance against the proceeds when they eventually obtain a personal injury accident settlement. For the person who is injured enough from an accident so as to be not able to work and earn a living, a lawsuit cash advance can provide a really timely financial solution to the cash flow problems the person might presently face. Nevertheless it's usually prudent to know in advance what a person is getting themselves into before they apply for a lawsuit cash advance.
A lawsuit cash advance isn't a loan but a participation in a personal injury legal settlement. If the injured victim who receives the lawsuit cash advance for whatever reason does not receive a cash settlement from their case, they owe absolutely nothing and the company that offers the lawsuit cash advance receives absolutely nothing. This means that, like any underwriter, the provider of the lawsuit cash advance should ascertain what the possibility is of ultimately receiving payment for the cash they advance and charge accordingly. Simply because of the nature of the lawsuit cash advance, normal interest rates will not apply, so the provider will most probably charge more for the lawsuit cash advance than a standard lender would.
The fees charged for lawsuit cash advances can differ substantially. Typical fees for automotive cases are 3.0% per month and for medical malpractice cases is 5.5% per month. Nevertheless it is not unusual for several companies to ask for a low entry fee to get business through the door and then charge additional, hidden fees to the personal injury accident victim.
Numerous companies say they will provide a lawsuit cash advance within 24-48 hours, but actual application times can differ significantly and are subject to the extent of the documentation needed from the personal injury accident victim along with other factors. And it's important to understand that a company that approves an application too rapidly may be charging the client through the roof to compensate for their less than stringent underwriting requirements.
The business of providing lawsuit cash advances to personal injury accident victims also has its share of brokers. A person is finest off if they can discover a company that offers the actual funding for lawsuit cash advances and deal with them instantly. Otherwise the cost that a broker charges will be included to the fee the provider of the lawsuit cash advance receives from the personal injury accident victim.
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