Advance Cash Settlement

Written by Michael O'Brien
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What is an advance cash settlement? In the legal world, a settlement occurs any time a case is decided out of court. It is often clear who the guilty party is. Rather than get involved in a lengthy, expensive court case, it is often in the best interests of a defendant to simply settle the legal issue out of court. Now that the agreement is made who is at fault and who shall pay, where will that money come from?

Obtaining an Advance Cash Settlement: Time versus Money

Unfortunately, money earned in having a case settled out of court is not always readily available. The company or individual may owe more than they are able to pay. This necessitates the need for them pay off the settlement over time. This is time a plaintiff often does not have.

An advance cash settlement is money a person can obtain right now. In essence, the person receiving the settlement is given funding to pay for any immediate expenses. These can include legal fees, repairs for damage to property, or personal living expenses. When the money from the settlement is obtained, the funding is repaid. Companies providing such cash advances are investing in the probability that the winner of a settlement will receive the money he or she is owed.

Time is Money

An advance cash settlement can work the other way too. The defendant paying the settlement can get a cash advance so that the person receiving the money can get all of his or her payment at once. It is then the responsibility of the defendant to repay that cash over time. As with any funding situation, the interest is where the company providing the cash advance makes its money.

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