A Lawsuit Loan is a type of a presettlement funding, which is a way for you to get money before your case is resolved. Unlike conventional loans, an advance against a pending lawsuit requires no repayment if the plaintiff does not receive a cash settlement or award upon resolution of their lawsuit. Typically, lawsuit loans are used to help plaintiffs pay for their bills and other expenses, especially if their ability to work has been affected by an accident or injury.

Advantages of a lawsuit loan

• All lawsuit loans are non-recourse, which means you pay only if you win. If you lose your case, you don't need to repay anything to the company.

• Lawsuit loans, often called lawsuit advances, can help an injury victim reduce their financial burden and help pay for necessary medical treatment not covered by insurance.

• There are no credit checks or employment requirements with lawsuit cash advances. You don't even need a bank account.

• A lawsuit loan can be processed in as little as 48 hours.

• Unlike conventional loans and credit cards, there are no monthly payments. The attorney will repay the advance directly from the settlement proceeds and only if you win.

• Also unlike conventional loans and credit cards, a lawsuit advances does not have a fixed term and does not need to be repaid until the case is resolved.

• A lawsuit loan can help you pay for many of your expenses, reducing your need to accept low ball offers, and increasing your bargaining power.

Disadvantages of a lawsuit loan

• A lawsuit advance is more expensive than a conventional bank loan. If the plaintiff wins their case, he or she will have to pay a premium for the advance, which is typically higher than interest for a bank loan.

The lawsuit loan is intended to help individuals who need additional cash to pay for their basic necessities, such as rent, mortgage, insurance, medical procedures, groceries, and emergency expenses.