What does “non-recourse” mean?
It means that repayment of the advance is only required if you win your case or reach an out-of-court settlement. Should you fail to reach a settlement, you owe us NOTHING. LawMax invests in your case, and so we share the risk with you. A “non-recourse” advance is also sometimes referred to as a “contingent” advance.
A. In simple terms, a Non-Recourse loan is one in which, if the loan is defaulted on, the lender can only go after the property used as collateral, as opposed to a Recourse loan in which the lender can go after the company or business entity for repayment of that loan, or a Full or Personal Recourse loan in which the lender can go after the owners of the business entity and guarantors. Loans on properties other than multi-family properties typically require Full Recourse, meaning the guarantors and owners of the business will have to ensure timely payment of the loan.
