Litigation or lawsuit funding is a cash advance against a pending litigation matter. Another name for litigation funding is settlement advances. There are many companies in the nationwide that provide litigation funding.

There are several types of litigation funding available.

Non-recourse funding – A plaintiff in a lawsuit can borrow money to get to the conclusion of the case. With this type of loan plaintiffs are provided with what is called a “non-recourse” loan. This means that if the plaintiff loses the case or the case is dismissed, the plaintiff is no responsible for paying back the load. For this reason, lawsuit funding companies will only fund cases that have a strong likelihood of succeeding and with large enough damages to warrant a high verdict or settlement. Non-recourse loans will only be provided to plaintiffs who have lawsuit that is taken on a contingency basis. Cases that are taken on contingency are those where you don’t pay for an attorney’s representation unless and until the case has either been settled or a judgment has been obtained. The attorney will take an agreed upon percentage of the amount you collect. Contingent fees are mostly found in personal injury or commercial litigation cases and less common with other types of litigation.

Personal Loan – This is an unsecured line of credit which is offered on account of an applicant’s good credit history.

Other Types of Loans - Other options to get litigation funding include getting a loan from the equity in a home or borrowing from family members. But also one can research all the ways that they can get the money they need.

Most litigation funding companies will only provide non-recourse loans on cases that are taken on a contingency basis. They will typically fund personal injury, medical malpractice or commercial litigation cases and will not fund criminal or family law cases. However, if you have a non-contingency case such as a family law or criminal case, you can still try to obtain another type of loan.

There are many companies that offer litigation funding. There are also some companies that specialize in particular types of litigation funding. You can use our directory of litigation funding providers to find the company that is best suited for your needs.