Pre-Settlement Funding: What You Need to Know

Pre-Settlement Funding

Regardless how strong your personal injury case is, one thing is for sure- the process can be lengthy, time-consuming, and exorbitantly expensive. Litigation can take months or even years to complete.

And because you suffered an injury, you may require funds to cover medical bills, household bills and expenses, including others, since your injuries are preventing you from earning an income. This simply means that one way or another, you will have to find a way to pay these bills.

In such a case, you might want to consider applying for a Pre-settlement Funding.

Also known as a lawsuit or litigation advance, a pre-settlement funding is a type of funding that provides you with immediate cash before the negotiations of your structured settlement case are finalized.

This cash advance is provided by a lawsuit funding company where in return, you will be required to repay after winning the lawsuit.

A pre-settlement funding is not a loan, but rather, you’re selling a part of your future structured settlement payments which you have no access to at the moment.

If you don’t win the case, you don’t need to pay the advance whatsoever.

Types of Lawsuits That Are Eligible To Get Pre-Settlement Funding

Not all cases are eligible for pre-settlement funding, so it’s important to confirm your eligibility before applying for the cash advance.

Some of the cases that are eligible to get pre-settlement funding include;

  • Personal injury
  • Wrongful death
  • Motor vehicle accidents
  • Medical malpractice
  • Worker injury and workers’ compensation
  • Premises liability
  • Defective medical devices
  • Defective drugs
  • Product liability

The Pre-settlement Funding Process

Now that you’ve decided to take a pre-settlement funding, the process is an easy and smooth one.

  • First, the funding company together with your attorney will review your case.
  • The company then will submit a written agreement to purchase a part of your settlement in exchange for a cash advance.
  • Next, you will be required to sign the agreement.
  • The funding company will then forward the funds to your attorney.

The Benefits of Pre-settlement Funding

This type of funding has become increasingly popular over the past few years due to the many benefits it offers.

One benefit is easy access to the funds. Once the negotiations between your lawyer and the funding company are finalized, you can get the money almost immediately. There are no delays whatsoever as the funding company does not consider limiting factors such as poor credit score or bad debt.

Also, you can easily get access to a larger amount of funding that will help you sort out immediate financial needs such as medical bills, college funding, debt repayment, house renovation/repair, including others.

With a pre-settlement fund, you don’t have to pay back the money after losing the case. Generally, you’ve got nothing to lose at all, whether you win the case or not. This is why it’s often considered as a “non-recourse” funding.

You will also get enough money to hire a qualified and experienced lawyer who will maximize your chances of winning your structured settlement case.


A pre-settlement funding is a great option when you want some cash advance as you await your pending structured settlement. And the good thing is that you’ve got nothing to lose and you get to have the chance to sort out your financial needs quickly, rather than waiting for months or years to have the case finalized.

Be sure to discuss the process with your attorney to ensure everything goes smoothly.

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