# What plaintiffs should know before accepting litigation funding

> Key considerations for evaluating lawsuit loan offers in mass tort cases.

**Canonical URL:** https://drugsmonitor.com/guides/third-party-litigation-funding-tips
**Last updated:** 2026-06-11

Third-party litigation funding companies offer cash advances to plaintiffs in exchange for a percentage of the future settlement or judgment. These are marketed as non-recourse, meaning repayment is only required if the case is successful.

However, the cost can be steep. Many funders charge compound interest at rates that can consume a large portion of your settlement. Some contracts also include hidden fees for underwriting, processing, or document management.

Before signing any litigation funding agreement, ask for the total dollar amount needed to pay off the advance including all fees and interest. Compare offers from multiple funders, and discuss the terms with your attorney, who may be able to recommend reputable options or help you avoid predatory terms.

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*Educational guide from DrugsMonitor.com. Not legal advice.*