Legal battles can often take a heavy toll, not only emotionally but also financially. If you’re involved in a personal injury lawsuit or other types of litigation, you might find yourself struggling to cover daily expenses, medical bills, or attorney fees while waiting for a settlement or verdict. The long and unpredictable nature of legal proceedings can cause stress, especially if you’re unable to work due to your injury or circumstances.

One solution that offers a lifeline during these times is a non-recourse advance. This form of legal financing can help you access cash quickly without the pressure of repaying it if you lose your case. This financing option is designed for plaintiffs who are involved in personal injury cases, class action suits, or other litigation where they need immediate financial support.

In this guide, we’ll dive deep into how non-recourse advances work, why they are beneficial for plaintiffs, and what you need to know before deciding to take one. By the end, you’ll have a better understanding of whether a non-recourse advance is the right solution for your situation.

What Exactly Is a Non-Recourse Advance?

A non-recourse advance is a financial product provided to plaintiffs involved in legal cases. Unlike traditional loans, a non-recourse advance is repaid only if you win the case. If you lose the case, you’re not required to repay the money you’ve received. This key feature makes non-recourse advances a valuable option for those in legal battles who are uncertain about the outcome.

Non-recourse advances are considered a form of lawsuit funding, which is a financial tool that allows plaintiffs to receive cash in advance of their potential settlement or verdict. The main difference between a non-recourse advance and a standard loan is the risk factor. With loans, the borrower is obligated to repay the loan, regardless of whether the legal case is won or lost. Non-recourse advances, however, are contingent upon the outcome of the lawsuit.

If the case is successful, the advance is repaid from the settlement or award. If the case is unsuccessful, you owe nothing. This makes non-recourse advances an ideal option for individuals who need immediate financial assistance but don’t want to take on the burden of additional debt if their case doesn’t succeed.

- WHAT CLIENTS ARE SAYING -

In June, my wife and I asked our attorney about giving us a loan against any settlement proceeds from our case. He told us that the state bar does not

permit lawyers to participate in the financing of clients. The offer of settlement was very low so the case needed to be filed in court. I called Fast Funds. Within 24 hours, I had entered into an agreement with them, selling a very small portion of the anticipated proceeds to them in exchange for immediate financing. Now my suit is in court and I don't have to worry about money until it's outcome. Thank god for Fast Funds

B.G.

As a result of the advances you have made to our client, we were able to refuse an extremely low settlement offer and take the case to court. We settled the day of the trial for a very generous sum. Had there been no advances by Fast Funds, our client would have had no choice but to accept the inadequate offer since he was in severe debt due to his inability to work. Thank you for your helpful assistance in providing our client with the ability to persevere.

C.F.

I was involved in an accident which took my left leg. I was forced to live homeless for eleven months. Thanks to the Fast Funds people advancing money. I now live in an apartment,I am walking on a prosthetic and otherwise getting my life back together, even though my attorney has not yet settled my lawsuit. I don't know what I would have done for money because the insurance company has offered nothing so far.

A.R.S.

I was involved in an auto accident which caused me to suffer a herniated disc. Because of this injury, I was forced to miss many months of work. I had no income and no place or person to turn to for money. My attorney told me he was unable to help with any financing and the insurance company was refusing to settle the case. I turned to a company called Fast funds. They immediately reviewed my file and took the financial pressure off by providing me with interim financing. I am now able to wait for as long as it takes for my lawyer to achieve a successful result in my case. Without the financial involvement of Fast Funds, I don't know what I would have done.

K.P.

I wanted to thank you for your sensitivity in helping me cope through a very difficult time in my life. Without your help, I would have been unable to pay my rent , forcing my wife and children to be put on the street. I have not been able to return to work and I was tempted to accept the insurance company's very low offer to settle, even though I knew it was not fair or reasonable. You have given me the ability to withstand the financial pressures. Thanks for your help. I will never forget it

C.S.

I have in the past referred clients to Fast Funds Inc., a non-recourse company. The experience of my clients

and my firm were totally positive. Fast Funds was responsive to the clients financial and emotional needs, provided the necessary emergency money and did not interfere in any manner with my handling of the cases. The clients, without my input, negotiated the advance directly with the company. In each case, they were completely satisfied with the final result of the case, including the amount of profit earned by Fast Funds. Non-recourse funding is clearly a valuable tool to the plaintiff's attorney.

M.J.L.

"I am writing to recommend the valuable assistance of the Fast Funds Inc., a company that provided interim funding to financially needy clients. They help to insure that a case will be brought to a successful resolution. A good case in point is when I was offered $75,000.00 for a seriously injured client. Had she not been able to take advantage of the advance financing offered by Fast Funds, I would have been forced to take the money. As it turned out, because my client now had the financial ability to withstand the pressures of time, I tried the case to a jury and received a verdict of $315,000.00.

M.S.D.

It is my belief that non-recourse companies, such as Fast Funds, the company to whom I refer my needy clients, perform an invaluable service to both the client and the attorney. Simply put, it is common knowledge that one of the tools negotiation utilized by insurance companies is time. Offering

considerably less money than the actual case value to a client in desperate need of funds while the case is pending, gives the insurance companies a tremendous advantage. This advantage is minimized and the playing field is leveled when the client has the ability to obtain funds for a minimal portion of the anticipated proceeds. Many times, with no prospects of income, an injured party will settle the case for whatever offer is made.

R.J.F.

How Does a Non-Recourse Advance Work?

The process of obtaining a non-recourse advance is fairly straightforward, but it’s essential to understand the steps involved before applying. Below, we break down the process from application to repayment.

Step 1: Application Process

To apply for a non-recourse advance, you will need to provide some basic information about your lawsuit and its status. The funding company will require details such as:

Case type: What type of legal case you are involved in (e.g., personal injury, class action, medical malpractice).
Expected settlement: The expected value of the settlement or verdict, which helps the funding company determine how much they are willing to advance.
Attorney’s involvement: The name and contact information of your attorney, as they will often work closely with the funding company to assess the merits of the case.

This application process is often quick, and many companies offer free consultations to help determine if you’re eligible for funding.

Step 2: Case Evaluation and Approval

Once your application is submitted, the funding company will assess the strength of your case. This involves looking at factors such as the nature of your lawsuit, the evidence, the potential damages, and the likelihood of success. Legal experts or analysts within the funding company will review these details to determine whether your case is strong enough to justify the advance.

The evaluation is based on a risk assessment, and since non-recourse advances are typically only granted if the lawsuit is likely to succeed, the more compelling your case, the more likely it is that you’ll be approved for funding.

Step 3: Disbursement of Funds

Once your case is approved, you’ll receive the funds—usually within a few days. The amount you receive is based on a percentage of the expected settlement or verdict. The funds can be used for a variety of purposes, such as:

Medical bills: Covering the costs of ongoing medical treatment or procedures related to your injury.
Living expenses: Helping you pay for day-to-day needs like rent, groceries, utilities, and more while your case is pending.
Attorney fees: In some cases, the funds may be used to cover part of your legal fees.

Non-recourse advances are designed to be flexible, so you can use the money as needed, without restrictions.

Step 4: Repayment Process

When you win your case and receive a settlement or judgment, the funds will be repaid to the funding company, along with any agreed-upon fees. These fees are typically a percentage of the advance, and they can vary depending on the length and complexity of the case.

However, if the case is lost, you are not obligated to repay the advance. This feature makes non-recourse advances risk-free for plaintiffs. It provides a financial lifeline without the fear of accruing more debt if the case doesn’t go your way.

Why Should You Consider a Non-Recourse Advance?

There are several reasons why plaintiffs might choose a non-recourse advance over other forms of financial assistance or loans. Some of the primary benefits include:

1. Risk-Free Financial Relief

The primary benefit of a non-recourse advance is the peace of mind that comes with knowing you don’t have to repay the funds if you lose your case. Many people involved in legal battles find themselves in financially difficult situations, and the ability to access cash without the pressure of repayment if the case fails is a major advantage.

2. No Credit Checks

Since the advance is based on the merit of your case rather than your financial history, no credit check is required. This makes it an ideal option for individuals who may not qualify for traditional loans due to poor credit or financial instability.

3. Fast Access to Funds

Legal battles can be long and stressful, and plaintiffs often need money quickly to cover expenses. Non-recourse advances provide fast access to funds, typically within a few days, so you can continue with your life while the legal process unfolds.

4. No Monthly Payments

Unlike traditional loans, where monthly payments are required, a non-recourse advance has no monthly payment obligations. Repayment is only required if you win the case, making it easier to manage financially.

Potential Drawbacks of Non-Recourse Advances

While non-recourse advances can be incredibly helpful in some situations, it’s important to understand that they aren’t without their drawbacks. Some of the challenges include:

1. High Fees

Non-recourse advances can come with high fees, especially if the case takes a long time to resolve. The longer the lawsuit lasts, the more interest or fees are typically added to the repayment amount. However, the fees are still considered a small price to pay for the financial relief provided during a difficult legal battle.

2. Limitations on Funding Amounts

The amount of money you can receive from a non-recourse advance is generally a percentage of your expected settlement or award. This means that if your case doesn’t result in a large settlement, the advance may not provide all the funding you need.

3. Risk of Losing More Than the Advance

If you win your case and the advance is repaid, you might still feel that you’re left with less than what you expected. Non-recourse advances typically come with significant fees, and these can eat into your settlement or award. It’s important to factor this into your financial planning when considering a non-recourse advance.

When to Consider a Non-Recourse Advance

A non-recourse advance is particularly useful in certain circumstances, such as:

Personal injury cases: If you’re injured and unable to work, a non-recourse advance can help cover medical bills and daily expenses while waiting for your case to be resolved.
Class action lawsuits: For those involved in complex class actions, accessing cash can help manage expenses over a long period of time.
Long-running litigation: If your lawsuit is expected to last for months or years, a non-recourse advance can provide the financial security needed to keep going.

If you are unsure whether a non-recourse advance is right for you, consider speaking with a financial advisor or legal expert who can help you weigh the pros and cons.

Non-recourse advances offer a unique and valuable option for plaintiffs in legal battles who need immediate financial assistance. With the ability to access funds quickly and without the risk of repayment if you lose your case, this form of lawsuit funding provides a lifeline during difficult times.

If you’re involved in a lawsuit and need financial support, a non-recourse advance could be the solution you’re looking for. Fast Funds, Inc. offers non-recourse funding with no hidden fees, ensuring that you can focus on your case while we take care of the financial details. Get in touch today for a free consultation and learn how a non-recourse advance can help you during your legal journey.

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Lawsuit Funding

Understanding Non-Recourse Advances: Why You Don’t Pay If You Lose