Lawsuit Loans

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					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 todays 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 ( offer cash advances against all types
of Personal Injury & Worker Compensation claims. It works like this: Global Financial will
review the merits of an applicants legal claim and determine the chance & s ize 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 st ick
with the larger companies, like Global Financial ( 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 defendants 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

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.

This article was posted on November 21, 2004