Is a Lawsuit Loan Actually a Loan?
It is technically a non-recourse advance, not a loan. Learn the critical difference that protects you from debt if you lose your case.
It is one of the most common questions we get: "Is a lawsuit loan technically a loan?"
The short answer is no. While it functions like a loan in the sense that you receive money now to address immediate needs, the legal structure is entirely different. It is technically a non-recourse cash advance against your potential lawsuit settlement.
The Crucial Difference: Repayment Risk
The difference between a "loan" and an "advance" might sound like semantics, but it has a massive impact on your financial safety.
- A Traditional Loan: You must pay it back, usually with interest, regardless of your personal circumstances. If you lose your job or encounter a financial crisis, the bank still expects payment.
- A Non-Recourse Advance: The repayment is strictly tied to the asset (your lawsuit). If the lawsuit fails, there is no asset to collect from.
This means if you lose your case and do not get a settlement, you owe us nothing. This "non-recourse" nature makes funding far safer and more appealing to clients than taking out personal debt or using credit cards.
So, Why Do We Call It a "Lawsuit Loan"?
If it's not a loan, why do you see that term on our website?
The reality is that when people are in financial distress during a lawsuit, they search for what they know. Most people search Google for "lawsuit loans" or "loans for settlements."
We use the term simply because it is what most people associate with the service. We want to ensure that people looking for help can find us. However, once you apply, we make sure you understand that this is a risk-free advance, not a debt that will follow you around if your case doesn't go your way.