Litigation financing is a financial service where a third party provides capital to a claimant or law firm to cover legal costs in exchange for a share of the recovery from the lawsuit. This is typically a non-recourse loan, meaning the funder only gets paid if the case is successful; if the case is lost, the claimant owes the funder nothing, and the funder loses their investment. This model allows individuals and companies to pursue claims without bearing the upfront costs and risk themselves.