Lawsuit Loans – Where Do I Begin?

Lawsuit loans can be confusing especially for someone who was recently introduced to the concept. What is a lawsuit loan? Do I need a lawsuit loan? How do I get a lawsuit loan? When I am approved for litigation funding, do I have to pay back the money? If I am denied funding does it mean that I do not have a good case? These are all very good questions and the following text will answer these questions and more.

What is a lawsuit loan?

A lawsuit loan is not a “loan” at all but rather it is a cash advance based upon the merits of a lawsuit that provides a plaintiff with sufficient funding to reach the conclusion of the case when the plaintiff will receive his/her fair share of the settlement or verdict. Litigation finance companies invest in the lawsuit itself as opposed to advancing money to the plaintiff in the form of a loan. Lawsuit loans are not based on a plaintiff’s prior credit or bankruptcy status. Other terms used for this type of funding include: litigation funding, litigation finance, litigation loan, lawsuit funding, lawsuit finance, lawsuit cash advance, case loan, case cash advance, plaintiff cash advance, litigant funding, pre-settlement loan, pre-settlement lending, pre-settlement cash advance, etc.

Do I need a lawsuit loan? summons and complaint 

A lawsuit loan should not be a substitute for your settlement but rather a raft that helps you stay afloat while your attorney fights for you. Too many plaintiffs apply for litigation financing with the belief that a lawsuit loan is simply a different way to get their settlement money. Assuming you win your case, the amount owed to the lending company varies greatly depending upon the length of time between the date of the advance and the date when you receive the settlement/verdict money. You should exhaust other means of funding first. Also, a good guideline to use is that lawsuit financing companies generally advance up to 10% of the estimated settlement amount. There are some good internet sites that give more background on lawsuit loans. Some good sources of information are The Funding Exchange ( and Expert Law (

How do I get a lawsuit loan?

Lawsuit lending companies have popped-up all over the country. Some tout their “low interest rates” or how they are the most lenient when it comes to approving lawsuit loans. For every 1 respected lawsuit lending company there are 3 that will do anything to charge plaintiffs random penalties that make no sense. These penalties help to offset their “low interest rates” and many times end-up costing the plaintiff more of their settlement. A good option is The Funding Exchange ( The Funding Exchange is a network of the most respected lawsuit lending companies in the industry. You complete one application on The Funding Exchange and your application is intelligently routed to the best lending companies for your specific case.

If I get a lawsuit loan, do I have to pay back the money?

Almost all lawsuit financing companies give non-recourse funding to plaintiffs thus requiring the plaintiff to pay back the advance and fees/interest only upon a favorable decision in the case. If the case is lost then you can keep the cash advance with no obligation. If you win your case then part of the settlement amount will go towards repaying the cash advance plus interest and fees. The amount owed to a litigation finance company increases the longer that your case takes to settle so keep that in mind.

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