A lawsuit Loan is a way offered to plaintiffs who expect to settle or win a judgment in a lawsuit. Here's how it works. After you file a personal injury lawsuit, you apply for the loan with a lawsuit funding company. The company evaluates your case to determine how much you can expect to get if you win or negotiate a settlement. The lender offers you a sum of money immediately. In exchange, you agree to pay the lender that sum of money and a "funding fee" out of the proceeds of your settlement or judgment. Usually, you don't have to make any payments before you settle the case or get a judgment. The lender gets paid from the proceeds of the lawsuit judgment or settlement.