What does non-recourse mean? Is it a loan?

Pre-settlement funding, sometimes referred to as a “lawsuit loan," is not technically a loan, but rather a non-recourse advance. Non-recourse means that if the case is unsuccessful and you do not receive a settlement, you do not have to repay the funding company anything. If there is no settlement, the money you had been advanced is yours to keep.

A non-recourse advance means that the advance you are granted is backed by your pending lawsuit and not you personally. If your lawsuit is successful, at the conclusion of your case, your law firm will repay the funding company for the advance you took out of the settlement proceeds