Legal funding, also known as lawsuit funding or litigation financing, is a mechanism that allows attorneys and plaintiffs involved in a lawsuit to receive money before their cases settle in return for a portion of any financial recovery from the lawsuit.
Essentially, it’s a cash advance given to the plaintiff or law firm to cover legal costs, living expenses, medical bills, or any other costs associated with the litigation process until a verdict or settlement is reached.
All legal funding from Baker Street Funding is non-recourse. That means if the lawsuit doesn’t result in a favorable settlement or verdict, we, the funding company, cannot pursue the individual or their assets to make up for the lost investment. This sets legal funding apart from a loan, where the borrower is obligated to repay the amount borrowed, irrespective of the lawsuit’s outcome.