Lawsuit loan
"Lawsuit loan" is the common search term for a pre-settlement advance, but it is not accurate — a genuine advance is non-recourse and creates no personal debt, while a loan is owed regardless of how the case ends.
The phrase persists because it is what people type into a search box, and most funders use it for that reason including this one.
The distinction matters legally as well as practically. Most states regulate non-recourse funding differently from lending precisely because repayment is contingent.
A company that lets you believe it is lending you money, or that structures the agreement so you owe it either way, has told you something important about itself.
Related terms
- Non-recourse — Non-recourse means an advance can be repaid only from a specific source — here, the proceeds of your case — and the person who received the money is not personally liable if that source produces nothing.
- Pre-settlement funding — Pre-settlement funding is a non-recourse cash advance against a pending legal claim, repaid from the settlement if the case recovers and canceled entirely if it does not.
- Usury — Usury is the charging of interest above a legally permitted maximum, and whether usury caps apply to litigation funding is a question courts have answered differently across states.
Need the money rather than the definition?
Apply in two minutes, or call 813-798-5528 and we will explain any of this on the phone.