Pre-Settlement Funding FAQs
Frequently Asked Questions
What is Non-Recourse Pre-Settlement Funding?
Non-Recourse Pre-Settlement Funding is a financing option that can be offered to plaintiffs who have a pending settlement case. Simply put, you have the option to get money now in exchange for a portion of potential settlement proceeds.
Is Non-Recourse Pre-Settlement Funding a loan?
No. It is not a loan, it is a sale. You are not borrowing money that you must pay back. Instead, you are selling a portion of your potential settlement proceeds in exchange for an advance. Once your case is settled, the funder will receive the agreed-upon portion that it purchased.
What happens to the loan if the plaintiff loses their case?
If the plaintiff loses their case, there is no obligation to repay. Remember, in non-recourse funding, the lender bought a portion of potential settlement proceeds. If there are no proceeds, the lender cannot ask the plaintiff to hand over something not received.
What can this fund be used for?
The process of settling claims could have a long-term impact on your finances. If an injury keeps you out of work or prevents you from working regularly, you do not have a stable income source to help cover your bills. During a lawsuit that prevents a plaintiff from working, it may be difficult to keep bill payments and living expenses current. Rather than carry more debt or default on payments, this financing option can help plaintiffs remain financially healthy while waiting for their legal resolution
How much of an advance can be received?
This can depend on the estimated strength and value of your case. Once your attorney provides us with the main facts, our underwriting team will determine an amount that is supported by your case and that is reasonable for your attorney to sign off.
Can I get more than one advance?
Depending on the details of a case, a plaintiff may have the opportunity to get more than one advance. In many cases, some can sell between 15%-20% (maximum) of the final settlement estimate, after any legal or attorney fees are paid. If the initial pre-settlement advance was insufficient, you may be able to receive another advance if your case qualifies.
How soon can funding be approved and received?
Every day counts when needing to pay for rent, groceries, and other bills. We understand how important this can be, which is why we expedite turnaround. After we receive the needed information from you and your attorney, we can get you a quote from a pre-settlement funding company in as little as 48 hours. If you decide to accept the offer, additional information may be required to finalize the approval process, but overall you may be able to receive the advance within 1-3 business days.
What types of claims are covered by Pre-Settlement Funding?
To qualify for Pre-Settlement Funding, your attorney will need to fill out an application describing the case. While different companies offer to fund a variety of cases, they mostly offer “cash for cases” involving personal injury, premises liability, product liability, medical malpractice, and wrongful death.
What if my case doesn’t fall into those claims?
Even if your case is different, you may still be able to avail of non-recourse pre-settlement funding. Contact us and provide us with details of your claim, and we will let you know if you can be eligible for the funding.