What is Pre-Settlement Funding? A Simple Guide
10 mins read
Published Apr 2, 2025
The Financial Reality of a Long Lawsuit
You’ve been injured in an accident that wasn’t your fault. You’ve hired an attorney and filed a lawsuit to get the compensation you deserve. But now, you're facing a new problem: reality.
Your injuries might be keeping you out of work, resulting in lost wages. Meanwhile, your regular bills—rent, mortgage, car payments, utilities, and groceries—keep coming. On top of that, medical bills are likely piling up. The financial pressure can become overwhelming.
Insurance companies know this. It’s a common tactic to delay the legal process as long as possible, hoping you'll become desperate enough to accept a "lowball" settlement offer just to make ends meet. You shouldn't have to choose between paying your rent today and getting the fair justice you deserve tomorrow.
This is where pre-settlement funding comes in. It is a financial tool designed to bridge the gap between your accident and your final settlement.
It's Not a Loan. It's a Non-Recourse Advance.
Many people refer to this as a "lawsuit loan," but that term is misleading. Pre-settlement funding is not a traditional loan. It is a non-recourse cash advance against the future proceeds of your lawsuit settlement.
Here is the most important difference: If you do not win or settle your case, you do not owe us anything.
With a traditional bank loan, you are personally liable for the debt. If you can't pay, they come after your assets, and your credit score is ruined. With non-recourse funding, the funding company is "buying" a small portion of your future settlement. We are taking a risk alongside you. If there is no settlement, there is nothing to repay.
Because it is not a loan based on your personal credit, there are no credit checks, no employment verification, and no monthly payments. Your eligibility is based solely on the strength of your legal case.
How to Use It & Why It Helps
The process is designed to be fast and simple so you can get the relief you need immediately. You apply, we review the details of your case with your attorney, and once approved, funds can be in your account in as little as 24 hours.
You can use this money for absolutely anything you need:paying rent or your mortgage to keep a roof over your head, keeping the lights on and your family fed, covering car payments so you can get to medical appointments, or paying off urgent medical bills.
By covering your immediate financial needs, pre-settlement funding buys your attorney the time they need to build a strong case and negotiate properly. It removes the pressure to accept the first low offer the insurance company throws at you. In short, it gives you the power to fight for the maximum settlement value your case truly deserves.
