Every year, millions of cases go through the U.S. court system, each of which is uniquely different from the rest. For just about all of them, though, they’re both expensive and time consuming.
Fortunately, lawsuit loans and cash advances provide the financial resources both lawyers and litigants need to proceed with their case to the fullest extent possible. But it’s important to note that while cash advances and lawsuits are similar, several key characteristics make them different. The following are a few of the ways the two compare and contrast so you can determine the best financial strategy for you and your case.
By definition, a loan is something that is borrowed and is expected to be paid back, typically with interest if money is what’s exchanged. This is perhaps the biggest misunderstanding people have between cash advances and lawsuit loans. With the latter, regardless of a case’s outcome, the loan has to be repaid. But with a cash advance, repayment is all dependent on if the case is won or not. If the verdict isn’t in the borrower’s favor, then the debt is forgiven. Lending institutions take a calculated risk by providing cash advances, but in doing so, they’re confident that the litigant will win the case.