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What is a Lawsuit Loan?

By definition, a lawsuit loan is a financial instrument that is provided by a lender to a borrower. The borrower is the party that is taking legal action against the defense. This legal action may be a personal injury case, commercial litigation claim, or a lawsuit. A lender will provide lawsuit funding against the initial claim or the actual lawsuit. A lender may also provide a lawsuit loan for a case that is already settled. A lawsuit loan is a non-recourse loan, meaning that all contingency fees on loansare always based upon the outcome of a case.

The loan is cash which is given ahead of time, based on merit, to a plaintiff. It provides sufficient funding for the client for the duration of the court proceedings and the declaration of a verdict, after which the plaintiff would be entitled to a fair percentage of the settlement. As a lawsuit funding firm, we invest in the lawsuit itself. This is not the same as advancing money to the client. Please note that these loans are not based on the bankruptcy status or credit worthiness of the beneficiary – You can have bad credit, no credit, or a bankruptcy, and still be eligible for a lawsuit loan.

  • Personal InjuryMedical MalpracticeCommercial/CorporateOther

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