Legal Loans and Pre Settlement Funding for Plaintiffs

What is a Lawsuit Loan?

Well, for starters, lawsuit loans aren’t really loans at all; it just happens to be one of the popular names that people tend to call non-recourse lawsuit cash advances.

A lawsuit loan is actually a non-recourse cash advance on a small portion of a future personal injury lawsuit settlement, but because that is such a mouthful, people just call them lawsuit loans for short. In fact, people commonly refer to them by a lot of different names such as legal funding, settlement loans, lawsuit funding andlitigation financing*. Lawsuit loans can also refer to law firm financing and attorney funding. In truth however, there are a number of significant distinctions between a regular bank loan and a lawsuit cash advance.

For purposes of this website the terms “lawsuit loan”, “settlement loan”, “lawsuit cash advance” and similar terms are used interchangeably.

Differences Between a Lawsuit Settlement Loan and Regular Bank Financing

Lawsuit Loan Bank Loan

It’s all money so what’s the difference, right? Not exactly. Non-recourse lawsuit funding, lawsuit cash advances or asettlement advance have some very powerful features and benefits that regular bank loans, personal loans, home equity loans and credit card cash advances simply cannot compete with. The single most important requirement to qualify for a litigation loan is to have a strong personal injury claim because the repayment of settlement funding is fully contingent upon the successful outcome of your lawsuit. Here are some other important differences:

  • Bank loans are credit-based which means the borrower must have good credit to even qualify. For a litigation loans, plaintiff credit score is irrelevant and bad credit is a non-issue.

  • Bank loans often charge up-front fees and in some cases, points and closing costs. Lawsuit loans do not have any up-front or out-of-pocket fees or costs.

  • Bank loans require the borrower to meet specific income and employment requirements. Lawsuit settlement loans do not have any income or employment requirements.

  • Bank loans always include a legal obligation to repay the amount borrowed in addition to a pre-determined rate of interest, on a predetermined repayment schedule with a specific pre-determined payoff date and if you miss any payments the loan goes into default and you are assessed additional fees and penalty charges. A lawsuit settlement loan requires no monthly payments and instead, simply gets paid off whenever the case settles along with any other liens on the case such as attorney fees, medical bills, case costs, etc.

  • Bank loans require security or collateral, usually in the form of real estate, and include specific remedies in case of default – namely the forfeiture of the collateral placed as security. Legal loans require only a lien against a portion of your future lawsuit settlement proceeds – identical to the lien placed for the payment of medical bills, attorney fees, case costs, etc. Important Note: Lawsuit financing liens are ALWAYSsubordinate to your attorney’s lien for fees, case costs, etc.

  • Bank loans MUST be paid back no matter what. A lawsuit settlement loan ONLY gets repaid if you win your lawsuit or it settles successfully. Obviously we’re not in the business of making advances where we know we’re going to lose money, but if you lose or your case doesn’t settle, you are under no obligation to repay the advance. It is this non-recourse feature, along with all the other flexible benefits, that ultimately make a lawsuit cash advance far superior to bank loans, home equity loans, personal loans, credit card advances, payday loans and many other types of full recourse loans.

Checkmark No monthly payments
Checkmark No employment requirements
Checkmark No credit is no problem
Checkmark No up-front fees or costs
Checkmark No out-of-pocket expenses
Checkmark No interference with case management
Checkmark No payment until your case settles
Checkmark No payment if your case doesn’t settle
Checkmark Approval process is FAST & EASY
Checkmark Low rates and excellent terms
Checkmark Prompt, professional & very discreet


Does your personal injury lawsuit qualify for a lawsuit funding?
Find out now by calling us at 1-877-932-2628 or apply online:

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