LAWSUIT LOAN

Global Financial provides cash advances, also referred to as Lawsuit Loans & Settlement Advances, to victims of personal injury & worker compensation accidents . Lawsuit Loans and Settlement Advances can provide Plaintiffs with a portion of their settlement prior to the settlement in their case. Most often, a Lawsuit Loan is beneficial to a Plaintiff who has been injured in a personal injury accident caused by another or in a worker compensation accident and they have been forced to stop working until their injuries heal.

A Settlement Advance is most often not actually a loan but rather an investment. A loan is payable unconditionally while a cash advance is only repayable upon a contingent event (the settlement of the case). If the claim is lost then the cash advance is not repayable. Lawsuit Loans have also been referred to as Lawsuit Insurance which was branded by Global Financial. By taking a cash advance against their claim, a person can guarantee 100% that they will receive a financial recovery in their claim and so it is referred to as Insurance against the possibility that the case is lost.

A Lawsuit Loan or Settlement Advance is a risky investment and there is no guarantee of repayment. The investment company provides the Lawsuit Loan or Settlement Advance to the customer and receives an assignment of the potential future proceeds from the legal claim as collateral for repayment. Since the pending legal claim is risky and the recovery, if any at all, is uncertain, the investor is taking a high risk of being repaid. If the case is lost then the customer keeps the Lawsuit Loan and the investor has no recourse to go after the customer for repayment. It may now be clear to you why there are no banks that have entered this business. The risk is high and hard to evaluate.

Many different lawsuit loan or settlement advance companies have come into financial trouble because of their lack of ability to evaluate each and every legal claim with good accuracy, which has led to numerous case losses. Remember, if a legal claim is lost in court then the lawsuit loan company receives nothing in return. The Lawsuit Loan is actually an investment by nature and therefore there is no recourse to collect from the Plaintiff when a case is actually lost.

Lawsuit Loans and Settlement Advances have also been referred to as Lawsuit Insurance™ (Global Financial Credit, LLC) because it offers the Plaintiff a form of coverage that is similar to insurance. It assures the Plaintiff that he/she will receive some monetary award from the legal claim regardless of the outcome of the case itself. If the case is won then the Plaintiff is responsible to pay back the settlement advance, however, if the case is lost then the Plaintiff will keep the money that was advanced to him/her without any obligation to repay the money back to the pre settlement funding company. The pre settlement funding company will have to accept that case as a lost investment rather than a bad loan which could be collected upon. This fact clearly shows that the Lawsuit Loan is not a loan and actually an investment. The term lawsuit loan is used because consumers are not well versed in the legal aspects of settlement advances and therefore use the term because it rymes and seems to describe what they want. Lawsuit Insurance of Lawsuit Cash Advance are terms that would be more appropriate but are ot being used for now.

In addition to Lawsuit Insurance™, many consumers us the term Lawsuit Advance. The term advance is clearly different from a loan so this describes the product much better than the term loan. A Lawsuit Advance is probably the most appropriate term to be used within the pre settlement funding industry. Pre Settlement Funding Company executives understand that they must eventually educate the consumer to the fact that a lawsuit advance is not a loan but rather a venture capital type investment on the part of the funding company into the pending legal claim. The pre settlement funding company is actually buying a portion of the potential future proceeds from the legal claim.

Lawsuit Insurance™ is a term that makes the most sense to the executives at Global Financial because it really describes the benefits and reality of the financial product being offered. A Lawsuit Loan, although it is used so commonly, is not a fair description of the product being offered but is continued to be used because so many consumers have not been educated. It seems to me as the pre settlement funding industry grows so will the terms that are being used to describe its products. No longer will the standard term be lawsuit loan, settlement loan or pre settlement loans but rather it will be Lawsuit Insurance, lawsuit advance and settlement advance.

Settlement Advances can be used by a plaintiff that is awaiting his or her settlement to pay for a myriad of things, including but not limited to living expenses, bills, medical expenses & even to afford him the ability to outweigh a deep pocketed defendant that throws out a low ball offer. In almost every personal injury claim that is made, the insurance carrier for the defendant has the ability to financial out last the plaintiff which is why a settlement advance can be so beneficial to bringing out the full value of a persons legal claim. With access to some of the settlement dollars today, a plaintiff can use those funds to keep their spirits high, remain strong and wait until a full and fair settlement offer is proposed. Settlement offers are often times extremely low and if the client is desperate enough at the time of the offer, he/she may actually take it. A Lawsuit Loan or Settlement Advance can help the plaintiff avoid taking the original settlement offer and waiting for the full value in the case. The additional amount they receive by not accepting the first settlement offer will often far outweigh any fees charged by the pre settlement funding company and ultimately net the client far more money into his or her pocket. When critics say that pre settlement funding companies charge high fees and do not bring any value to the case at hand they have not done enough research on the subject to understand why the settlement advance can help a case financially in the long run.

Many personal injury lawyers do not initially see the value in their client receiving a cash advance against their pending legal claim but as they see more about how the process works, then they begin to understand why a settlement loan can be so advantageous to their clients. As long as, too much money is not advanced on any one claim, then a lawsuit loan is often the obvious choice. It can increase the total value of the case which will put more settlement dollars into the pockets of the client and the lawyer. It can also help pay for surgery and necessary medical treatment that the client could not have previously received. A pre settlement funding company that understand that moderate lawsuit advances can be a good thing for the overall value of the legal claim and understand that too much money advanced can actually compromise settlement can be a very important asset to a personal injury attorney that wants to build a personal injury practice that gives the most to his/her clients.

Some of the most successful personal injury practices have decided to use a pre settlement funding company to assist their clients in need. Just as they have worked with doctors & physical therapists in the past, they understand that ethical companies in the pre settlement funding arena are a tremendous asset to their practice and to their clients. The important thing for a personal injury attorney is to protect his/her client against a pre settlement funding company that charges high fees or even worse does not explain their fees upfront.

Global Financial provides settlement advances with fees that are lower than all of its’ know competitors. Each individual case is different and so the Finance Manager’s at Global Financial can tailor a cash advance program that will help you pay your immediate and necessary living expenses today.

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