Lawsuit Cash Advances: What You Need to Know
The California Alternative to Lawsuit Loans
Recovering from an accident can be costly, especially if you are unable to work. If your finances are currently unable to bear the expenses of a lawsuit, applying for a lawsuit cash advance is an available alternative. Since it is different from other types of financing such as a lawsuit loan, understanding its pros and cons is important. Following are the things you should know about the lawsuit cash advance:
Cash advances are different from lawsuit loans
The prime difference between a lawsuit cash advance and a loan is that they have different regulations and conditions.
Lawsuit cash advances provide much more security to customers. Companies such as FCA Legal Funding have clear policies for those clients who lose their cases and are thus exempt from repaying their lawsuit funding.
In contrast, loans have to be repaid no matter what the outcome of the case is.
Advantages for a pending settlement
There are plenty of cases where the lawsuit involves an individual who was injured and is currently unable to work. Until the person recovers and starts earning a salary, they can sue the other party to receive compensation for the medical expenses and the grievance. But since the lawsuit might also require some costs, it becomes a difficult situation for them. A lawsuit cash advance can help at such times to bear the expense of suing the other party.
More attention towards the case
Instead of worrying about the legal bills, a lawsuit cash advance can help you devote your attention towards winning your case. This is a very significant factor to consider if the case will take a long time to reach a conclusion.
Differentiation among the cash advances
In every type of funding, the borrower when paying back the advance gives the principal amount and some interest on it. The same is also true for lawsuit cash advances.
The minimum return fee and structure of repayment should be considered when selecting a particular lawsuit cash advancing company. Some companies preset the payment schedule. In such cases, you will have keep paying the fee even if your settlement is reached before the time.
Difficulties in qualifying
Not all financing companies are the same because one might not cover the lawsuit you are applying for. They may also audit customers differently to ascertain the financial risk. Thus landing a lawsuit cash advance from the start might not be possible.
FCA Legal Funding stands apart from other means of securing legal funding in California. We make all terms and conditions clear upfront with our clients and offer a funding package within 48 hours of filling out our form.