Pros and Cons of Getting an Advance


First let’s define what a lawsuit loan is. When you’re in a lawsuit and need some extra assistance paying your bills, you have the option to borrow money against the settlement you’re expecting to receive from the lawsuit. These types of loans are popular among personal injury plaintiffs who accrue large medical bills due to their injury. If you happen to lose your lawsuit, the legal financing company won’t get repaid, so your case must be desirable to such companies to even obtain funding.




  • Breathing Room: Legal funding provides you some extra time to get things in order as far as mortgage payments, medical bills, car loans, etc. Let’s be real, extra cash to tide you over is never really a bad thing, is it?
  • More Negotiation Time: For the duration of the lawsuit, you may feel more comfortable taking out a loan to allow more time to negotiate and receive the fairest settlement possible. One of the main goals of the loan is to help alleviate financial stress so you and your attorney’s focus is on winning the case.
  • Easy Money: Anyone can apply and if your case is considered, you’re able to get your money immediately. Keep in mind that this is not a loan, so your credit score, or any financial history for that matter, isn’t checked. Your likelihood of being funded is solely dependent on how good your case is.



  • Fees: So obviously legal funding companies aren’t going around tossing out free money. Like any loan, funding fees or interest payments are a part of the borrowing process. Be mindful of the time you pay back your loan, as the longer you take, the more money you’ll be paying back to wherever you borrowed from.
  • Not All Cases Qualify: Keep in mind that funding companies are taking a substantial risk when loaning out their money. They can’t predict the outcome of the case, so they determine how much to loan you based on how confident they are about your case.
  • The Search for a Reputable Lender: Since regulations on lawsuit funding solutions aren’t widespread (these types of loans have only been around since the 1980’s), it could be tough to find an actual company who is honest and legitimate. Look for companies who are endorsed by other larger companies or who are registered with services like the Better Business Bureau.


Written by: Kristy Kravitsky