Legal Funding Glossary

The legal funding world can sound like one big riddle: litigation funding, cash advances, pre-settlement and post settlement funding – it can be hard to know what’s what, and even harder to determine which funding option is best for you. Our lawsuit funding glossary will help clarify your choices so you can make a final decision.

Legal funding terminology

Attorney funding: Attorney funding, or law firm loans, is a type of lawsuit financing for lawyers. Attorney funding can provide cash for expert witness testimony, case studies, or other lawsuit expenses, or can simply help keep your firm afloat while you await a large settlement or jury verdict.

Commercial litigation funding: Commercial funding is available to businesses involved in ongoing litigation. A commercial litigation loan can help your business afford legal expenses, and can also serve as financial backup to keep your company operating.

Defective medical device funding: This type of funding is available to plaintiffs who have been injured from a defective medical device. (Examples: hip implants, artificial heart valves, dialysis machines, pelvic mesh, etc.) Defective medical device funding makes it possible to hold out for the verdict you deserve, and not accept a lesser settlement just to relieve your current financial strain. This is a non-recourse loan, meaning there is no risk to you.

Drug lawsuit funding: Drug lawsuit funding is ideal for plaintiffs injured by dangerous drugs. (Examples: Yaz, Accutane, Chantix, Actos, Vioxx, and many more) This type of funding can help cover basic expenses while you await your settlement or jury verdict, making it possible to fight for the amount you deserve. There is no risk to you in accepting this non-recourse loan— if you do not win your lawsuit, you do not have to pay us back.

Lawsuit funding (plaintiff funding): Lawsuit funding, also known as plaintiff funding, is available to plaintiffs involved in personal injury lawsuit, commercial lawsuits, dangerous drug lawsuits, and defective medical device lawsuits. We give you money now to fund your case or other living expenses—rent, mortgages, tuition costs, etc.— with the expectation that your case will resolve successfully in your favor with a settlement or jury award. If we approve you for plaintiff funding, it means we think you will win; if you don’t win, you keep the advance and don’t owe us a cent in repayment.

Non-recourse loan: A non-recourse loan is a unique type of loan that acts more like a cash advance. When LawStreet Capital approves you for a non-recourse loan, you assume zero risk: if you don’t win your case, you won’t owe us anything. Additionally, you are not required to submit employment verification or a credit report to qualify for a non-recourse loan with us, and you will not make any monthly payments on your loan. You only pay us back when you win your case.

Personal injury lawsuit funding: This type of funding applies to plaintiffs involved in personal injury litigation. Personal injury lawsuits range from medical malpractice and wrongful death to premises liability and car accidents (including pedestrian injuries). Personal injury lawsuit funding can help you and your attorney afford to bring the strongest possible case to court, and will help plug the financial hole while you await a fair settlement.

Post settlement funding: Often, there is a waiting period between a settlement or jury verdict and the disbursement of funds. Post settlement funding bridges the gap between your win and your funds, helping you cover monthly bills and unexpected expenses. This is a type of cash advance, since the money is already yours; LawStreet Capital merely gets it to you sooner.

Pre settlement funding: Pre settlement funding is available to plaintiffs involved in pending litigation. The loan amount is based on several factors, such as the defendant’s ability to pay damages should the case resolve in your favor, and can help you cover bills or fund your legal efforts. This is a non-recourse loan, so there is no risk to you.

Structured settlements: Structured settlements are a type of lawsuit settlement that pays over time. Instead of one large settlement payment, plaintiffs receiving structured settlements get smaller, periodic payments over a period of months or years. Structured settlement funding is available to people who wish to convert part of all of a structured settlement into a lump-sum payment. This is not a loan at all, but a cash advance: since the money is already yours, LawStreet Capital just buys a portion of your settlement in exchange for the amount of cash you need today.

24-approval for lawsuit loans

LawStreet Capital will approve your no-risk, no-obligation lawsuit loan application within 24 hours. We do not do a credit check and do not require employment verification. Once you are approved, we will overnight your money to you, so that you can have cash in hand as soon as possible. Get the money you deserve now, when you need it most. Call our helpful representatives today toll-free at 800-345-8500.