What “non-recourse” means for a plaintiff
“Non-recourse” means the advance is repaid only from the money your case recovers. If the case is lost or dismissed, you owe nothing: there is no bill, no collection from your wages or savings, and no repayment schedule waiting for you. It is the single most important feature of pre-settlement funding, and it is worth understanding exactly what it does and does not cover.
Recourse versus non-recourse, in plain terms
“Recourse” is what a provider of money can turn to if it is not paid back. With most consumer credit, such as a personal loan or a credit card, the lender has recourse to you: if you do not pay, the debt stays with you whatever happens in your life or your lawsuit.
With non-recourse pre-settlement funding, the only source of repayment is the outcome of your claim. Millenia's advances are non-recourse: if your case is lost or dismissed, there is nothing to repay. The funding company, not the plaintiff, carries the risk that the case does not succeed.
Why it matters to an injured plaintiff
People usually look at pre-settlement funding when an injury has interrupted their income and bills are arriving faster than the case is moving. In that position, taking on a debt that must be repaid whatever the result can add pressure at the worst possible time.
A non-recourse advance removes that particular worry. You are not adding a monthly payment, and you are not putting your savings at risk on the outcome of a case you do not control. That can make it easier to give the case the time it needs, rather than feeling pushed to accept the first offer because money is short.
What non-recourse does not mean
Non-recourse is a promise about what happens if the case is not won. It is not a promise about everything else, so it helps to be clear on a few points:
- It is not free money. If the case resolves in your favour, the advance and the agreed charges are repaid from the proceeds. The written agreement sets out every charge and how the amount payable changes over time.
- It is not a guarantee of approval. A pending case alone does not guarantee an offer. Funding depends on case review and the information available from your attorney.
- It does not replace reading the agreement. Ask what the agreement says about your own obligations while the case is pending, and about any situations it treats differently. Your attorney can walk through it with you.
How repayment works when the case succeeds
When a case settles or a judgment is paid, your attorney typically receives the funds and pays the amounts owed under the case before the balance is released to you. The funding repayment is handled as part of that process, which is why your attorney is involved from the start. You do not make payments yourself while the case is pending.
Before accepting any advance, ask to see examples of the amount payable at different resolution dates, so you know what to expect whether the case resolves in a few months or takes much longer.
Questions to ask about any non-recourse offer
- Is the advance fully non-recourse, and where in the agreement does it say so?
- What do I owe if the case is lost or dismissed? (With Millenia, nothing.)
- How is the amount payable calculated, and how does it change over time?
- What does the agreement ask of me and of my attorney while the case is pending?
- Is there anything in the agreement my attorney should review before I sign?
Funding with Millenia
Millenia's pre-settlement advances range from $500 to $100,000+, are non-recourse, and funds are sent within 24 hours of approval. Every offer comes with a written agreement that sets out the full terms, so you can decide with the complete picture and with your attorney's input. You can read more about consumer pre-settlement funding or, if your claim is a business dispute, commercial plaintiff funding.
Non-recourse funding is designed for one situation above all: a plaintiff who needs breathing room while a case runs its course, without betting their own finances on the result.
Funding is subject to case review and a written agreement. General information, not legal or financial advice.