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.