Definition - What does Legal Financing mean?
Legal financing is the funding of legal fees by a third party. This type of financing is often used when a party cannot afford legal fees.
Third parties who conduct legal financing typically do this in exchange for a portion of the judgment if the party in the suit is successful.
Justipedia explains Legal Financing
Many individuals use legal financing to be able to pay for attorney fees. In some situations, it is simply the only way that the party can afford a trial. However, it is not just individuals who use legal financing; sometimes, corporations use it as well.
Legal financing is similar to a loan. However, it is structured to be compatible with the needs of the parties involved in lawsuits.