In the last article, we examined the historical pricing models in the lawsuit cash advance funding industry. We also discussed the business dynamics that often change pricing in any business which puts capital at risk for profit.

1. ost of Lawsuit
Ex amining the C
Funding

2. In the last article, we examined the historical pricing models
in the lawsuit cash advance funding industry. We also
discussed the business dynamics that often change pricing
in any business which puts capital at risk for profit.
Specifically, we mentioned how the settlement loan industry
evolved from an enterprise charging as much as 10% per
month as "interest" on Granuflow lawsuit cash advances to
a business where applicants are routinely "funded" for as
little as 15% per six month period.

3. In this entry, we examine the costs associated with lawsuit
funding and analyze them from the perspective of an
applicant who is in dire need of cash for whatever reason.
From this angle, we can more accurately assess the costs
associated with this type of financial relief - only available
for those who have a pending lawsuit.

4. Since every person's circumstances are different, weighing
the costs in obtaining a lawsuit loan or pre-settlement
funding against the future proceeds of an individual's
pending case, can only be accomplished on a case by case
basis. For this reason, perhaps the best way to illustrate
the point, is to use a hypothetical example.

5. ple
ypot hetical Exam
ing Costs - H
Lawsuit Fund
A 36 year old plaintiff in a lawsuit finds himself unable to
work and support himself and his family due to injuries
sustained due to the negligent driving of another individual.
Since 2008, plaintiff has exhausted all other avenues for
financial relief. He has borrowed money from his friends
and family. He has taken a home equity loan against the
value of his home. He has gone through his disability
payments from work and the other "benefits" he receives
do not cover his monthly expenses. He is currently 5
months in arrears on his mortgage and property tax
payments.

6. Forced with an imminent foreclosure proceeding, this
plaintiff's options are limited. On the one hand, he can file
bankruptcy, which could save his home but would ruin his
credit rating for many years. He can hire an attorney for this
but the attorney requires payment up front for his time and
expertise.

7. s
Comparing Cost
We already discussed the costs associated with lawsuit
cash advances. But what about the cost of not being able
to pay bills on time, or at all? We may not be able to
quantify the costs exactly, but we can at least identify some
potential problems. For example, defaulting on a mortgage
could result in the following "costs" for the homeowner.

8. 1. Removal from the Dwelling. The defaulting party must
then find shelter. Normally, a rental unit requires first and
last month rent plus a security deposit. That is three
months rent up front from the new tenant. Of course, if the
person has three months rent, he would probably be able
to at least delay the foreclosure process. So there is a
liquidity problem on top of the existing problem. One can
easily foresee multiple "costs" associated with being
removed from a place of residence (e.g. moving costs,
additional fuel expenditures, storage fees, etc.).

9. 2. Destroyed Credit Scores. Like it or not, this country
operates on debt. Who is indebted to whom is the oldest
and arguably the most profitable game in history. Access to
credit is an integral part of the game and are a function of
credit scores. Obviously, a mortgage foreclosure would
severely hamper a person's access to credit for car loans,
future home purchases, appliances or even credit cards.
Further, even if credit is offered, the interest rates charged
will be far more than otherwise would be required. Above
are simply two "costs" facing the person in our example.

10. Conclusion
When thinking about the above, it is helpful to weigh the
long term effects of these events. The real problem is how
to accurately assess the cost and compare them to
obtaining a lawsuit cash advance funding against a case.
Ultimately, the analysis depends on individual
circumstances. Fortunately, the lawsuit funding business
exists for those persons who make the analysis and
choose lawsuit loans as a possible solution. Thousands of
people make this choice each and every day. Thank you for
your interest in the pre-settlement loan business.
http://www.consumerinjuries.com/granuflo/