Sunday 13 August 2017

Lawsuit Cash Advances - Things to Consider



In recent years people who have been involved in personal injury accidents have discovered that they can receive a lawsuit cash advance against the proceeds they ultimately receive from a personal injury accident settlement. For the person who is injured enough from an accident so as to be unable to work and earn a living, a lawsuit cash advance can provide a very timely financial solution to the cash flow problems the person may currently face. Nevertheless it is always wise to know beforehand what a person is getting them into before they apply for a lawsuit cash advance.
A lawsuit cash advance is a participation in a personal injury legal settlement but is not a loan and the company that provides the lawsuit cash advance receives nothing for whatever reason doesn't receive a cash settlement from their case, if the injured victim who receives the lawsuit cash advances they owe nothing . This means that, the provider of the lawsuit cash advance like any underwriter must determine what the likelihood is of ultimately receiving payment for the cash they advance and charge accordingly. Normal interest rates will not apply because of the nature of the lawsuit cash advance. So, for the lawsuit cash advance than a traditional lender would the provider wills most likely charge more.

Significantly the fees charged for lawsuit cash advances can vary. Typical fees for medical malpractice cases 5.5% per month and for automotive cases are 3.0% per month. For some companies to charge a low entry fee to get business through the door nevertheless it is not uncommon. To the personal injury accident victim they then charge additional, hidden fees.

Within 24-48 hours, many companies say they will provide a funding for lawsuit cash advance but are subject to the extent of the documentation required from the personal injury accident victim along with other factors and actual application times can vary greatly. And it is important to realize that to compensate for their less than stringent underwriting requirements a company that approves an application too quickly may be charging the client through the roof.

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