What This Guide Covers
If you have a pending personal injury case and you are struggling financially while waiting for your settlement, pre-settlement funding may be an option. This guide walks through exactly how the process works, from application to repayment, so you can make an informed decision.
What Is Pre-Settlement Funding?
Pre-settlement funding (also called a pre-settlement advance, lawsuit advance, plaintiff funding, or settlement funding) is a cash advance provided to plaintiffs who have pending legal cases. The advance is repaid from your settlement if your case wins. If your case loses, you owe nothing.
This is not a loan. Repayment is tied entirely to your case outcome. It is money you can access if you need it while you wait for your case to settle.
Step 1: Determine If You Qualify
To qualify for pre-settlement funding, you generally need:
- An active personal injury case (filed or about to be filed).
- An attorney representing you.
- Clear liability (the other party is at fault)
- Adequate insurance coverage on the liable party
Cases that typically qualify include car accidents, truck accidents, slip and fall injuries, workers’ compensation, medical malpractice, and wrongful death. The amount of funding you can get depends on the value of your case. Plaintiffs can receive up to 10% of their projected settlement.
Step 2: Submit Your Application
The application process is simple and fast. You provide:
- Your name and contact information.
- Your attorney’s name and contact information.
- A brief description of your case (what happened, when, how you or your loved one were injured).
Most applications can be completed on your smartphone in under five minutes. There is no cost to apply and no obligation to take the funding if you are approved.
Step 3: Case Evaluation
After you apply, the funding company contacts your attorney to learn more about your case. The evaluation looks at:
- Liability: Is the other party clearly at fault?
- Damages: What are your injuries and their financial impact?
- Insurance: Does the responsible party have adequate coverage?
- Timeline: How far along is the case?
- Medical Treatment Needs: What type of care do you need to recover from your injuries?
Funding companies who take pride in their customer service know that getting access to pre-settlement money is very important. Because of this, they can typically evaluate your application the same day you apply. Your attorney provides standard case information that they already have on file, so it doesn’t take long at all if your attorney is quick to respond.
Step 4: Receive Your Offer
If you are approved, you’ll receive a funding offer that includes:
- The advance amount (how much cash you will receive).
- The fee structure (what you will owe from your settlement).
- The repayment terms (repaid only from settlement proceeds).
Take your time reviewing every detail. A good funding company will never pressure you to sign immediately. Ask questions. Have your attorney review the terms too, for your peace of mind.
Step 5: Sign and Get Funded
To accept your offer, you’ll electronically sign documents via DocuSign using your smartphone or computer. You’ll usually receive your funds within 24 to 48 hours.
You can receive your funding in the way you prefer:
- Same-day ACH (direct deposit into your bank account)
- Venmo
- PayPal
- Visa Direct to Debit
- Overnight check or electronic check
Step 6: Live Your Life While Your Case Proceeds
Use the advance for whatever you need: rent, car payments, medical bills, groceries, utilities. There are no restrictions on how you use the money. There are no monthly payments due. Your only obligation is to allow repayment from your settlement when your case eventually resolves.
Step 7: Repayment at Settlement
When your case settles, the advance plus the agreed-upon fee is repaid directly from your settlement proceeds. Your attorney handles this, so you don’t have to manage the process yourself. The repayment is deducted before your remaining settlement funds are distributed to you.
On the off chance you lose your case, you do not need to pay back your funding. The funding company absorbs the loss entirely. This is what is meant by “non-recourse.”
How Much Money Can You Get?
Advance amounts usually range from $500 to $100,000. The amount is based on the expected value of your settlement. Most plaintiffs can expect about 10% of the projected total. This protects both you and the funder by ensuring the advance is a reasonable portion of your expected recovery.
Common Concerns Addressed
Will getting an advance affect my case?
No. Pre-settlement funding does not change your case strategy, your attorney’s approach, or the timeline of your litigation. It does not disqualify you from winning your case.
Will my attorney be upset if I get this funding?
Most attorneys are familiar with pre-settlement funding and support their clients using it. The process requires minimal involvement from your attorney.
Is this safe?
Yes. Reputable funding companies provide clear terms, do not pressure you, and protect your information confidentially.
