What Is a Non-Recourse Loan?

High Rise Financial provides personal injury claimants with non-recourse pre-settlement legal funding. However, many clients wonder what “non-recourse” means. Ultimately, all debt is classified as either recourse or non-recourse, and the distinction is vitally important. Non-recourse debt is designed to protect the borrower.

To get no-risk, non-recourse funding for your personal injury claim, fill out the form on our Apply Now page. Call our team if you have questions or would like additional information.

Non-Recourse Loans

With a non-recourse loan (or pre-settlement legal funding), you are NOT held personally liable for the debt. If you end up defaulting on the loan, the most the lender can pursue in repayment is the collateral associated with the loan.

For example, a bank may foreclose on your home to recoup debt associated with a home loan. However, it would be unable to take money out of your paycheck or pursue further payment even if your home’s value does not cover your debt.

Recourse loans, on the other hand, have no such protections. The lender is given virtually free rein to pursue repayment in any way they wish, even garnishing your wages. This type of lending is prevalent among lawsuit loans, which is why groups like the Center for Public Integrity have called out these practices as too risky for injured people.

To apply for free, call (877) 735-0016

How Non-Recourse Legal Funding Works

High Rise Financial is NOT a lawsuit loan company. We offer pre-settlement legal funding, which is non-recourse in nature. That means you won’t be locked down into monthly payments, there is no compound interest, and you owe us nothing if you lose your lawsuit.

This is why we can safely say that our funding is risk-free.

Eligibility for Pre-Settlement Legal Funding

Ultimately, High Rise Financial gets repaid out of the compensation package you receive, which can be either a settlement arrangement or a jury award. Since your personal finances are not involved, your eligibility does not depend on things like:

• Bank statements
• Proof of employment
• Debt-to-income ratio
• Tax records

Instead, your eligibility is determined by the facts of your case. In order to get pre-settlement legal funding from us, you must:

• Have a valid personal injury claim filed in court
• Be represented by a lawyer or law firm

Information You Need to Apply

When you fill out your application, you’ll be asked for information like the state of your injuries, a ballpark estimate of your compensation amount, the name of the law firm or solo practitioner that represents you in this claim, and the value of the damages you suffered. This information is used by our underwriters to determine whether we can offer you pre-settlement legal funding and, if so, what amount.

In some cases, we are able to provide up to $250,000 and can have it in your bank account in as little as 24 hours.

Paying Back Your Non-Recourse Legal Funding

Most clients who receive pre-settlement legal funding ask about the repayment process. At High Rise Financial, we keep everything simple and transparent so that you never have to worry about hidden fees or unexpected payments.

Instead of compound interest, we use a flat fee. That means you won’t wind up paying back two to three times what you borrowed, as you might with lawsuit loan companies.

You also don’t have to endure monthly payments, and the repayment process doesn’t require you to lift a finger. It’s all handled by your attorney! Here is the typical timeline of repayment.

• You get pre-settlement legal funding from High Rise Financial, allowing your attorney the time they need to get you the compensation you deserve.
• You win your case.
• Your lawyer receives a check for the compensation package from the opposing party.
• Your lawyer writes High Rise Financial a check for the agreed-upon repayment amount, takes out their attorneys’ fees, and you keep the rest!

Not only do you keep the rest of your compensation, as well as the money you received from us, but you don’t have to stress over repayment whatsoever. It’s a win for everyone!

Complete a Free Application form now

Legal Funding Is Not a Traditional Loan

When someone is struggling financially, the last thing they should do is take out another loan. However, non-recourse not loans are not like traditional loans. With a non-recourse loan, you do not need to have a good credit score to get your claim approved.

When you file an application for a traditional loan, you could be rejected if your credit does not meet their standards. Furthermore, with traditional loans, there is an interest rate. If you have a poor credit score, you will have a higher interest rate.

This interest grows each month, ultimately costing you considerably more than the amount of the initial loan. With a non-recourse loan, there is no compound interest. Furthermore, traditional loans may require the use of a cosigner, whereas lawsuit loans will never require a cosigner.

When to Apply for a Non-Recourse Loan

It may be in your best interest to apply for a non-recourse loan if you are having trouble making ends meet. If you are currently out of work, working reduced hours, or are unable to earn a living, you may be having trouble covering your regular monthly expenses, and extracurricular fees, and otherwise have trouble supporting your family during this difficult time.

If you are currently waiting for an insurance settlement or civil claim to come through, a non-recourse loan could be in your best interests. Why wait and continue to struggle when you could obtain access to a portion of your settlement in advance. Although you will be required to pay back what we provide you with, you can find the financial relief you need now, when you need it most.

How Much Could You Be Approved For?

It is difficult to say how much your non-recourse lawsuit loan could be approved for without having reviewed the details of your case. First, you should consider what your civil claim is going to be worth.

Your lawyer will have calculated the value of your claim by carefully examining your economic damages and non-economic damages. You might be surprised by some of the losses you could recover in your civil claim. Some of the different types of economic damages you could recover include:

• Back pay and lost wages
• Medical expenses and equipment fees
• Property damages
• Insurance premium increases
• Loss of potential future earnings
• Costs of vehicle repairs

Some of the different types of noneconomic damages you could recover include:

• Loss of consortium
• Physical pain and suffering
• Reputational damage
• Inconvenience
• Emotional trauma
• Disfigurement or skin scarring

Our loan specialists will work with your attorney and go over your application to determine how much you are expected to be awarded in your civil case. From there, we can assess how much to approve your application for. In some cases, we may be able to approve you for up to 20% of your anticipated settlement, however, you can find out more about how much your pre-settlement funds are worth when you contact us for more information.

Laws Influencing Your Legal Funding

The regulation of non-recourse lawsuit loans is ever increasing. There are several laws in place that could impact how much you can be authorized in pre-settlement funding. For example, every state has a statute of limitations in place that limits the amount of time someone has to file a civil claim.

If the statute of limitations passes and the claim has not been filed, the claimant loses the right to pursue the claim. One of the top mistakes victors make is waiting to take action on their case. If you do not get your civil claim filed in time, we cannot approve you for pre-settlement funds.

Shared Fault

There is also the question of shared fault. Every state has shared fault laws in place that determine how a victim’s case should be handled if they are partially to blame for their injuries. This is known as contributory negligence.

Some states bar financial recovery. Others allow injury settlements to be reduced proportionally. If your civil settlement is going to be affected by the state’s shared fault laws, it will also impact the amount of compensation we can authorize in your lawsuit loan.

If you have concerns regarding how State or Federal laws could impact your case, do not hesitate to reach out to your lawyer or our loan specialist at High Rise Financial to discuss your concerns further.

Spending Your Pre-Settlement Funds

In some types of lawsuit loans, borrowers are prohibited from using their funds to make certain purchases or are monitored in their spending. However, this is never the case with High Rise Financial non-recourse loans. Your pre-settlement funds are yours to spend however you decide to.

This money is yours. We are simply allowing you to access it while you wait for your funding to come through. If you need to spend your money on rent or mortgage payments, credit card debt, entertainment costs, groceries, or anything else, the choice is yours.

With that being said, it is important to remember that your lawsuit loan will need to be paid back when your attorney wins your case. There have been instances where borrowers get caught up in being awarded compensation and make the mistake of making exorbitant purchases, failing to pay outstanding debts, and wind up in further financial distress after their settlements have come through. If you hope to avoid future financial distress, get ready to make the most of your lawsuit funding.

Apply Today for Your Non-Recourse Pre-Settlement Legal Funding

Applying for funds from High Rise Financial is totally free. Since we always offer non-recourse funding rather than recourse loans, there is no risk to you, and your personal finances are protected. You are not held personally liable for the debt you take on, and the most we can take as repayment is our portion of your eventual settlement or jury award.

High Rise Financial’s application form can be completed quickly, and our underwriters can have money in your bank account in as little as 24 hours. To get started, fill out the form on our Apply Now page. For any additional questions, concerns, or information about the process, call us today, and one of our financial experts will be happy to discuss your claim.

Call or text (877) 735-0016 or fill out our form to apply today for free.