Litigation Financing is a means to help the person fighting litigation with financial expenses. This is an amount fixed by the Litigation Financing Company as pre-settlement charges. These expenses are given as advances, for which the recovery is made only if the client wins the case.

Litigation Financing Expenses are handled through the attorney hired by the individual. An individual awaiting a fair settlement in a personal injury or any other situation decides to file a lawsuit. As a layman he or she may need the support and advice of an expert attorney. The attorney becomes the guide and philosopher to the individual. He or she builds up a case after going through the possibilities for a 'good settlement' or meritorious settlement charges. Once the case is filed, it is through the attorney that the individual contacts a Litigation Financing company or any source for the expenses involved.

Here, the attorney is helping with Litigation Expenses as 'only' an advance. The individual should not take any litigation cash advance or litigation loan from his or her attorney. It is unethical for an attorney to borrow funds from a lending company to pay for his or her client. On doing so the attorney will get a security interest with the contingent fee from the lender. Also, the attorney may have ulterior motives to recover the dues from the client. This would mean that the attorney is 'cheating' on his or her client.

Therefore, it is not permissible for the attorney to finance Litigation Expenses. The company deals with the individual through the attorney. While the attorney gets a contingent fee, the company buys a portion or share of the recovery settlement charges. There is no place for any expense in the form of interest or monthly payments in any Litigation Financing. Thus, for ethical reasons, no attorney lends money to his or her client.