Lawsuit cash advances should be used a last resort when in the middle of a litigation process and you find your self out of funds to pay the bills and feed your family. Lawsuit cash advances are never considered as a loan. Other descriptions of your cash advance could be: investment or venture capital.
The injured person has no obligation to pay the advance if the case loses and that is why it is not a loan technically. The injured will keep the lawsuit cash advance regardless of the out come of the case.
Also, because of the nature of this advance funding, it provides encouragement for plaintiffs to file for careless and pointless lawsuits. Lawsuit funding companies are usually very careful in picking plaintiffs to award an advance to. Usually the plaintiff has to be in dire need of the cash advance, they also have to have a very strong case and almost certain that the case will result in victory and a substantial amount of money. Their fees are usually very high also.
For the injured, if you really must resort to lawsuit cash advance, do your research and talk to various companies, compare their rates and find a company with best and lowest fees.