What does it mean to monetize a lawsuit?

Litigation monetization is a mechanism by which an interested party receives an upfront cash advance based on the potential future outcome of a judicial or arbitral case. Instead of waiting years for a judgment or award, monetization allows immediate access to a portion of the estimated value of the claim. This instrument is particularly useful in lengthy, complex legal disputes, or in cases with a high degree of legal certainty—where the claimant seeks to convert an illiquid legal asset (the disputed right) into real liquidity without waiting for the final outcome of the process. How does monetization work? Unlike traditional financing—which is aimed at covering legal costs—monetization is designed to advance part of the capital expected to be recovered. At Loopa, we analyze the case and, if it meets our eligibility criteria, we structure an advance payment in exchange for a share in the future proceeds. This advance can be used freely: - To meet cash flow needs - To restructure debt - To reinvest in the claimant's business - Or even for personal expenses When does monetization make the most sense? When the case is at an advanced stage —for example, with a favorable judgment pending execution When there is a high degree of legal or economic certainty, such as an admitted administrative claim or an already determined amount In contexts where the claimant needs immediate liquidity to operate or make strategic decisions In disputes against the State, where payment times are usually prolonged even after a favorable ruling What types of cases can be monetized? At Loopa, we monetize claims with potential economic results exceeding 1 million dollars that are based on a solid legal foundation. They can be judicial disputes, arbitrations, or even final judgments that remain unpaid. Our analysis evaluates the present value of the credit, the probability of recovery, execution risks, and the estimated collection timeframe. What is the cost of monetization? As in any litigation finance operation, the cost depends on thee risk and the projected recovery time. We agree on a success-based share of the outcome, tailored to the characteristics of the case. And, as always, if nothing is recovered, the client does not have to repay the advance: the risk is entirely ours. In summary, the monetization of a litigation allows you to convert part of a future right into immediate liquidity today, without waiting years for a judgment or sentence to be executed. It is a strategic tool for those looking to anticipate value, gain flexibility, and take control of their financial timing. Do you have a valuable claim and don't want to wait until the end of the process to see the results? At Loopa, we help you monetize it.