I'm thinking the loan could be from the lawyer themselves and built into their standard payment contract (similar to that "pay nothing if we don't win!" deal perhaps), but yes, it isn't a perfect system.
I suppose that would depend on the lawyer's financial position and personal integrity.
True, it has drawbacks. I am sadly not too familiar with the whole system. I just know people try to leave court as last chance.
But it also means, I wont probably get sued for opening a door to a woman.