What Is a Non-Recourse Advance?

You may have heard the term non-recourse advance before and are not quite up to date on its meaning. The most important thing to remember is that a non-recourse is advance is different from a loan. It is money that a specific entity gives the other person under the pretense that such a person is going to receive enough money to repay the advance. The term is most commonly used to refer t people who have impending personal injury cases where they will receive a large settlement for an injury that they received because of someone else’s neglect. There are some qualities that make a non-recourse advance much more desirable than a traditional loan is, however. Here’s some additional information.

What Makes a Recourse Advance Unique?

What makes recourse advances different from non-recourse advances is that the lender has no recourse. In other words, the borrower does not have to repay the advance if he or she does not win the lawsuit that the lender bases the advance upon. That’s the greatest beauty of such a loan. The lender agrees that if the borrower does not win the case, it does not have the legal right to harass, collect or do anything else regarding the funds. The borrower is free to continue to live his or her life as usual. Of course, if the borrower does win the case, he or she will have to repay the advance plus any interest or finance charges that the lender adds.

Why Get a Recourse Loan?

The biggest reason that a person should get a non-recourse advance is that personal injury settlements sometimes take a long time. Many of them take several months to complete the process. Some of them are so complex that they take the participants years to get through them. If you are suffering from an injury and are unable to work, the proceeds from the non-recourse advance can help you to get back on your feet. You won’t lose your home and your family while you’re waiting for the judge to rule in someone’s favor. With the funds that you get from the advance, you can pay yourself every week as if you were still working, and you can survive until the case concludes and you find out who wins.

Who Qualifies for a Non-Recourse Advance?

Any person who is 18 years of age or older and has proof of an impending case that is in his or her favor can apply. As long as you can show that you are working with a legitimate lawyer, you do have a live case, and chances are good that you will win, you will most likely obtain approval.

How a Non-Recourse Advance Works

The process of getting a non-recourse advance is very quick although it does require quite a bit of documentation. The lender will have to confirm that your case is valid and it is moving in your favor. You may have to produce quite a bit of paperwork, and that list may include items such as doctor’s notes, police reports, pictures, X-rays, witness statements and so on. The best way to get the request rolling is to provide the lender with your attorney’s contact information so that he or she can pass that information along.

The underwriting team will verify that all the information that you have given is true to the best of your knowledge. If you are approved for the advance, the lender will create a contract that you will have to sign if you want to move forward with the arrangement. The contract will include the finance charges and fees that you will have to pay back if you win your case. If you agree to the terms, you sign the contract, and the lender signs a check for the amount that it promised.

How Much Can a Person Receive for a Non-Recourse Advance?

The amount that you can get varies depending on a multitude of factors like the type of case that you are involved in, the level of neglect, the lawyer’s confidence level and so on. Many lenders offer amounts that vary between a few hundred and many thousands of dollars. Some of them may offer more, and some of them may offer less. You can decide which one is more beneficial to you after you conduct some research on the matter. When you are searching for the right advance provider, always try to find one that has tenure and many positive reviews from different sources. That company will be likely to provide you with above-average services and a truly compassionate deliverance of it.

How to Get a Non-Recourse Advance

You can initiate the loan process using a number of methods. A phone call to the provider is probably the easiest way, but you can also complete an online form. Someone will call you back and let you know what you need to do to proceed. In most cases, you or your lawyer will have to provide some paperwork so that the lender can get you an approval for the funds. The entire process usually takes less than 24 hours. Start now by calling a trustworthy institution to see if you can qualify.