It means that repayment of the cash advance is only required if the workers comp claim results in a settlement.  If the case is resolved successfully, the advance is repaid out of your settlement proceeds.  If the case is lost or doesn't settle, you have no obligation to repay the advance. It also means that if the case is not resolved successfully, the lender has no legal recourse against the borrower to compel repayment of the advance. As such, the legal funding company assumes 100% of the risk for repayment and makes the transaction 100% risk-free to the borrower.