Frequently Asked Questions About Lawsuit Loans

Q. Why are lawsuit loans not really loans?

Q. What types of lawsuits qualify for lawsuit loans?

Q. Why is meant by “non-recourse” when referring to lawsuit loans?

Q. Who can benefit from lawsuit loans?

Q. How is a lawsuit loan different from a conventional loan?

Q. How long does it take to get approved for a lawsuit loan?

Q. How do I receive a lawsuit loan?

Q. Why are lawsuit loans not really loans?
A. Any conventional loan must be repaid, and there are no contingencies that excuse you from repaying it. Get an auto loan to buy a car, and if you cannot work, or the car is stolen, or it does not run, you still have to repay the loan (although your insurance will pay off the loan in the case of a stolen car or if it is totaled in a collision). Buy a house with a mortgage, and you have to repay the mortgage even if the house is washed away in a flood or it burns to the ground! Repayment of a “lawsuit loan” (really a lawsuit advance) is contingent upon your winning your case or reaching an out-of-court settlement.

Q. What types of lawsuits qualify for lawsuit loans?
A. Just about any type of personal injury or commercial lawsuit, as well as several specialized legal claims.

Q. Why is meant by “non-recourse” when referring to lawsuit loans?
A. A lawsuit loan is really not a loan. It is actually an investment in the outcome of a lawsuit. When the plaintiff and attorney reach an out-of-court settlement or win the case at trial, the lawsuit loan plus the accumulated risk premium on that advance is repaid from the proceeds of the settlement. However, should the plaintiff and attorney fail to reach a settlement or lose the case in court, they owe nothing! The company that made the loan (or, more accurately, the investment) has “no recourse” to collect the money it advanced, thus the term “non-recourse”.

Q. Who can benefit from lawsuit loans?
A. Both plaintiffs and their attorneys can benefit.

1. Individual Plaintiffs: Individuals in personal injury, wrongful death, medical malpractice and similar lawsuits can benefit from a lawsuit loan. If approved, they will receive cash they can use however they wish, money that does not have to be paid back until they reach a settlement. For individual plaintiffs, a lawsuit loan replaces lost income, and they typically use the money to pay the rent, make car payments, and cover living expenses.
2. Business Plaintiffs: A small business that is the plaintiff in a lawsuit can quickly find its ability to conduct businesses negatively impacted by the actions of another business. A commercial lawsuit loan provides working capital to sustain that business until it receives cash from the settlement of its lawsuit.
3. Attorneys and Law Firms: Just as individuals and businesses wait for cash until their lawsuits settle, attorneys do not get paid only their client’s claim is settled. That’s why many attorneys take advantage of a lawsuit loans to cover the cost of running their practice.

Q. How is a lawsuit loan different from a conventional loan?
A. They are in many ways the mirror image of each other!

1. No Application Fee and No Monthly Payments: Unlike auto loans, mortgages and traditional bank loans, there are no application fees and no monthly payments with a lawsuit loan. The risk premium on a lawsuit loan accumulates until the lawsuit is settled. The total is paid back by your attorney from the proceeds of the settlement when he also pays off any other lien holders.
2. No Credit Check and No Employment Verification: Approval of a traditional loan is based on the applicant’s credit history and earnings, but lawsuit loans are not made on that basis. They are advances against the proceeds of the applicant’s lawsuit, and the lawsuit is essentially collateral for the loan.
3. No Interest and No APR: Because we do not charge interest, a lawsuit loan has no APR (Average Percent Rate) like an auto loan, credit card or mortgage. Instead, we charge a risk premium, a fixed dollar amount that is added to the advance in six-month increments. When your case settles, the original advance, plus the accumulated risk premium, is what is paid back.
4. No Settlement, No Repayment! The most significant difference between a lawsuit loan and a traditional loan is that conventional loans must be repaid regardless of the applicant’s ability to pay, while a lawsuit loan only has to be repaid if the lawsuit is successful.

Q. How long does it take to get approved for a lawsuit loan?
A. Once the Lawsuit Loans Center has the necessary documentation from your attorney, our underwriter makes a funding decision in 48 hours!

Q. How do I receive a lawsuit loan?
A. The process is simple and it takes just a few minutes of your time.

1. You begin the process by applying online.
2. The Lawsuit Loans Center contacts your attorney and requests the documentation we need to evaluate your case. Once we receive this documentation, we make a decision in 48 hours.
3. The Lawsuit Loans Center sends a Claim Investment Agreement to your attorney to review on your behalf. You sign the agreement, and your attorney acknowledges our lien.
4. As soon as we receive back the signed agreement, we immediate issue a check and we overnight it to you.

Easy to Qualify. Easy to Apply.
To see if you qualify for a lawsuit loan, apply online.