Be aware of the risks posed by lawsuit loans!

A lawsuit loan gives you the necessary funds while you wait for your settlement to come to a conclusion, funding you may need for paying your expenses such as rent, mortgage, or medical expenses if you were in an accident. Also referred to as lawsuit lending and litigation financing, a lawsuit loan may be of help if you are seriously injured and financially burdened. Your expenses will be covered until a decision is reached in your injury case, and you can repay the loan after the case is closed.

If your recovery isn’t expected until a few months, and you can’t work during this time, it may appear advantageous to pursue a lawsuit loan.

However, as attractive as they seem, keep in mind that lawsuit loans involve certain risks as well which you should be well aware of before you sign up for a lawsuit loan.

Huge Charges

Lawsuit loans typically charge exorbitant fees. Generally, your lender would require you to pay for an application, administration and processing fees, which usually add up to a significant amount. Calculate the total fee that you would be paying, and try to negotiate with your lender, in order to reduce the amount.


Not every case qualifies for a lawsuit loan. You can get a loan only when the lending company is confident that you would settle or win the case. This is because you don’t have to repay the loan if you lose, which puts your lender at risk.


Lawsuits loans are not regulated strictly, which may lead to legal problems.

So what can you do?

Try to get funding through other means, such as pre-settlement funding, before opting for a lawsuit loan. Consider your health insurance or disability payments, or ask your friends and family if they can lend you some cash. You can even approach a neighborhood bank or credit union for an installment loan.

The fact is that with pre-settlement funding through Fund Capital America, you can get the cash advance you need to pay your expenses without having to repay anything if you lose the case.  This is not the case with a loan.  Before you look into obtaining a lawsuit loan, think about the risk you run should you lose your case and be left stuck with thousands of dollars to repay.

Pre-settlement funding is a much safer alternative to lawsuit loans. Contact Fund Capital America to learn how we can advance you the cash you need to cover your expenses: (855) 870-2274.