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Editor: Lauren Lipcon
Profession: IFN Program Director

Category: Pre-Settlement FAQs for Plaintiffs

Lawsuit loans are not actually loans, rather they are a form of non-recourse funding. Non-recourse funding is a source of funds or cash, that does not necessarily have to be repaid. A lawsuit loan, or pre settlement advance, is based soley on the merits of your lawsuit or case. If the case is lost, the funds do not have to be repaid, making the advance non-recourse.

The lawsuit funding company takes on significant risk by offering such a service. If and when your lawsuit does make a successful recovery, the pre settlement advance is repaid out of the recovery, including the previously agreed upon fee.

A lawsuit funding company will typically advance up to 10% of the anticipated value of the case. Lawsuit funds can be used by Plaintiff's to cover any immediate financial need including: mortgage payments, rent, car payments, credit card bills, everyday living requirements such as food and staples, even medical bills.

In the past, Plaintiffs were forced into accepting low settlement offers due to being out of work for so long from their accident and injuries. With lawsuit funding, this doesn't have to happen anymore. Lawsuit funding companies provide injured Plaintiff's with "staying power" so that they can allow sufficient time for their attorney to obtain the highest recovery possible.

If you are in need of lawsuit funding, please contact us using the form at the top right of this page. Someone will respond to you the same business day.