While advances made to plaintiffs in personal injury lawsuits are often referred to as lawsuit “loans,” they are really not loans at all. Lawsuit loans are, in fact, non-recourse advances. Lawsuit loans are non-recourse because – unlike a conventional loan – they are only repaid if the plaintiff and his or her attorney win their case at trial or reach a settlement with the defendant.
Lawsuit loans fill a critical need. They provide immediate cash to plaintiffs while they wait for their claim to settle. Since some lawsuits can take many months or years to resolve, lawsuit loans allow people to cover their living expenses. While personal injury attorneys will represent those who have been injured or suffered a loss on a contingency basis (the attorney is paid from the settlement he secures for his client), these plaintiffs need cash to cover their regular living expenses and to pay for medicine, medical treatment or rehab services. Lawsuit loans bridge the gap between the plaintiff’s immediate need for cash and the time it takes for their lawsuit to work its way to a conclusion.
Lawsuit loans were originally used only for personal injury plaintiffs, but some companies in this industry have expanded the concept to include funding for businesses involved in commercial legal claims, as well as those involved in divorce and inheritance claims.
Lawsuit loans are not truly loans because unlike a conventional loan, there are no monthly payments. There is no absolute obligation to pay the money back. A lawsuit loan is repaid from the proceeds of a successful lawsuit. Should the client and his or her attorney lose at trial or fail to reach a settlement, the client keeps the money and owes the lawsuit loan company nothing!
Lawsuit loans are unique in several other ways. The lawsuit loan application process does not include a credit check and there is no employment verification. Unlike conventional loans, lawsuit loans are not granted based on the applicant’s personal ability to repay them, but on the strength of the underlying lawsuit.
Lawsuit loans are risk-free to the applicant. There are no out-of-pocket costs to the client. And a lawsuit loan is only repaid if and when the recipient and his or her attorney secure a settlement from their lawsuit.
To apply for your lawsuit loan, click on the “get a quote today!” tab or call us toll free at 866-FUNDS-NOW (866-386-3766).