Funding
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.
A recourse agreement against a lawsuit is a very different product from a non-recourse advance, and a far more dangerous one for the claimant. If the case loses, the debt survives.
If a funding agreement does not clearly say it is non-recourse, assume it is not, and ask directly.
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.
- 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.
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.