One very important concept borrowers need to be acquainted with is the “distinction without a difference.” This means that two things that are described differently are not necessarily different in and of themselves. 

A cash advance and a loan are the same thing, even if they have different names. The only important “difference” between the two is when one is guaranteed by some future legal settlement and the other is a more traditional kind of financing, the first isn’t well regulated. It is often a good idea to consult a company like Tribeca Lawsuit Loans to get more information. Eligibility requirements can vary widely from lender to lender. These are some of the things borrowers should keep in mind. 

Confidence 

The entire basis for a loan against future lawsuit proceeds is the lender’s confidence the case will be decided in favor of the borrower. Not only is this far from guaranteed even in the most favorable circumstances, but it can lead to an adverse situation for the borrower in the event things don’t turn out the way they expected. Further, the terms of such a loan can be altered based on changes in the future outlook. This can end up making the borrowed funds incredibly expensive. 

A Seat at the Table 

Not only does this kind of loan leave the door wide open for lenders to make arbitrary decisions, it means there is a seat at the table for that lender in every future legal negotiation. If your case is one that doesn’t leave much room for maneuvering, it might turn out the lender will lose interest in the deal. After all, lending is a money-making enterprise. Litigation is far more often a money-losing compromise. When those two objectives clash, the most valuable ally can be a company like Tribeca Lawsuit Loans. A bad deal may leave the potential borrower with too great a burden to bear, and leave the lender with no reason to participate. 

Regulation 

Traditional loans are heavily regulated by the government for numerous reasons. Among the most important protections offered by regulation are those prohibiting lenders from destroying their customers financially. In an unregulated loan market, and especially one based on a big future question mark, borrowers have to understand there are no hard and fast rules. This includes eligiblity for a loan. Even with a strong case, it can take many applications and a great deal of time to find an interested lender and even then, the deal might be too expensive to maintain.