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.
This is the single most important word in a funding agreement. It is what separates an advance from a loan, and it is why no credit check is required.
If your case loses, a non-recourse advance is canceled. Not deferred, not sent to collections, not reported — canceled.
Every funding agreement carries an exception for fraud or a breach of the agreement — giving false information, or abandoning the case — and ours does too. Read that clause in any agreement you are offered, because it is where the word non-recourse is qualified.
Check that the word appears in any agreement you are asked to sign, and that it covers fees as well as principal.
Related terms
- 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.
- 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.
- Recourse — Recourse is a lender's right to pursue a borrower personally for repayment — through wage garnishment, bank levies, collections or credit reporting — if the agreed source of repayment falls short.
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.