Get access to legal finance to reduce the burden of costs incurred during your case.
We’re committed to our readers and editorial independence. We don’t compare all products in the market and may receive compensation when we refer you to our partners, but this does not influence our opinions or reviews. Learn more about Finder .
Going to court is stressful, and this stress can be deepened when you’re worrying about the costs that are building up with your lawyer, along with any other legal costs incurred. Getting legal finance to offset some of these costs can be one way to ease your concerns. With most lenders, funds go directly to your lawyer so you don’t have to worry about whether or not they have been paid.
How does legal finance work?
Legal finance is a way for genuine claimants to fund their legal costs. Depending on the lender, this may only be available for certain types of cases, such as family law or contested probate proceedings. You are generally able to borrow a maximum of 30% of an estimate of your expected settlement in court. Once approved, the funds are usually invoiced directly to your lawyer or used as a balloon payment from the proceeds of the settlement. You are able to use this loan to cover solicitor’s fees, court costs, barrister’s costs as well as other disbursements that are relevant to your case.
How does legal finance differ from a personal loan?
Legal finance is different to a personal loan taken out to cover the costs of your legal case. Legal finance involves your lender working with you and your lawyer to prepare a funding solution that suits your individual circumstances.
When you apply for legal finance you need to provide details about your case so the amount you are approved for is tailored to your individual circumstances. Once you have been approved, funds can be paid directly to your lawyer instead of to you.
Compare a range of personal loans below
How to compare legal finance options
In order to compare your legal finance options, consider the following:
- The loan terms available.Look into whether or not the loan terms you’re applying for match your case duration. Some lenders offer terms that start from six months but are able to be extended if your case goes longer than the maximum loan term.
- Secured or unsecured. Whether or not you have security to offer when looking for legal finance is another comparison to make. If you don’t have any assets that can be offered as security, an unsecured legal finance option may be right for you.
- Repayment flexibility. The flexibility of weekly, fortnightly or monthly repayments can be of benefit when you’re paying off your loan and is another point to consider.
- Interest rates. As with any loan, a lower interest rate is beneficial as it allows you to pay off the amount owed faster, so compare rates when looking into legal finance.
- Fees. Whether or not there are fees associated with your legal finance option is another thing to consider before applying. Some lenders require application fees as well as charging monthly administration fees for the term of your loan.
- Credit ratings. Some lenders only accept applications from those who have good credit. Make sure you either meet the credit criteria or look into finding another lender.
Is there anything else to consider before applying?
Some things to consider before applying for legal finance:
- Is this a dangerous habit? It’s easy to think that once you’ve been approved for a loan your financial worries disappear. However, it’s possible to get into too much debt and it becomes more difficult to break the habit with each loan you are approved for.
- Have you already applied for legal finance? If you have applied for legal finance and are impatiently waiting for a response, give it a few more days or chase up the lender before applying elsewhere. Applying for too many legal finance options is risky and as excessive enquiries can damage your credit file.
- Are you aware of the fees and charges? Make sure you have investigated all the fees and charges that will be incurred on the legal finance so there are no nasty surprises.
Have more questions about legal finance?
What about credit checks?
An initial credit check will be completed when applying for the loan. If you wish to extend your loan terms then another credit check will be done to ensure you can meet your financial obligations.
Am I able to use the funds for any other purpose?
No. This loan will only be made available for your lawyer’s invoices.
Does the other legal party have to know about my financial situation?
Depending on the circumstances, the other party may be able to apply to the court to find out how you are funding your case. Check with your solicitor.
Personal Loan OffersImportant Information*
You'll receive a fixed rate between 6.99% p.a. and 25.69% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.
You'll receive a fixed rate between 9.99% p.a. and 18.99% p.a. ( 10.88% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
You'll receive a fixed rate between 6.95% p.a. and 17.95% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Make additional repayments or pay off the loan early, penalty-free.
Ask an Expert