What Are the Different Types of Legal Funding?

by | Jun 1, 2023 | Legal Funding | 0 comments

Your Funding Options If You Are Involved in a Lawsuit

If you have a pending lawsuit but need money now, you have funding options. From traditional loans to pre-settlement legal funding, you may have multiple ways to get the money you need while you wait for your case to resolve.

At Triumph Legal Funding, we can help determine what kind of funding would best suit your needs and whether we can help provide you with the financial help you need while you wait for a settlement or verdict. If you have an attorney and a pending case, contact our office at (973) 362-3500 to determine if you are eligible for legal funding.

What Types of Legal Funding Are Available?

There are two basic types of legal funding available: recourse and non-recourse. 

Types of funding available:

  • Recourse funding allows the lender to collect not only the underlying asset that was used for collateral on the loan but also any additional money to satisfy the amount owed. 
  • Non-recourse funding is that which a lender cannot collect beyond the collateral that was used to secure the loan. 

While recourse funding tends to favor a lender, non-recourse funding favors the borrower. It lowers the risk for the borrower. Most pre-settlement legal funding is considered non-recourse in that a lender cannot pursue action against the borrower if the case is not successful.

What Types of Cases Is Pre-settlement Legal Funding Available For?

Pre-settlement legal funding can be used to help you avoid the financial hardship associated with litigation. Cases can take months or years to settle. Unfortunately, many people cannot afford to wait for a settlement or verdict. 

Pre-settlement legal funding can be used for:

To be eligible for pre-settlement legal funding, you must have an attorney. An attorney can help provide the information that an underwriter needs to determine whether you are able to receive legal funding and the amount of the cash advance. 

What Is Attorney Funding?

It is not only injury victims that may be eligible for legal funding. Attorneys may also apply for legal funding to help them cover litigation costs. Attorney funding can help ensure that you can fully litigate a case on behalf of your client. It can provide the financial assistance you need to make sure that your client never settles for less than what their case is worth. As with all pre-settlement legal funding, attorney funding is non-recourse.

Learn More About Legal Funding Options Today

If you are interested in learning more about legal funding, contact our office at (973) 362-3500 to determine if you are eligible for legal funding. We work with clients nationwide. Call our office now for no-risk, fast approval. 

At Triumph Legal Funding, we have made legal funding quick and easy. Get the money you need now so that you do not have to worry later. Our firm provides lending for both attorneys and their clients. Find out how much you could receive by calling our office today.