Pre-Settlement Funding in 24 Hours

What is pre-settlement funding?

Pre-settlement funding, also known as legal funding or a lawsuit loan, is cash that you can receive ahead of your estimated settlement. Defendants often try to drag out settlement negotiations in the hope that plaintiffs will cave in to financial pressure and accept a lesser award. Pre-settlement funding can help you resist these pressure tactics. 

How much does pre-settlement funding/settlement loans cost?

A settlement loan from a reputable legal funding company will typically carry a fairly low, simple interest rate. However, it’s impossible to say how much your legal funding will cost without first examining your case. Every case is different, so there isn’t a typical fee you can expect to pay.

How does pre-settlement funding work?

Pre-settlement funding is technically a form of nonrecourse debt taken out against the expected value of your future settlement. This means you’re under no obligation to repay the loan from your own assets. There’s no collateral needed for a lawsuit loan except for your settlement. 

How many pre-settlement loans/settlement loans can you get?

In most instances, you can take out loans ranging from 10 – 20% of the value of your settlement. Legal funding companies typically don’t offer more than this to manage their risk and that of their plaintiffs. If you require more funding, settlement buyouts are available that can give you access to much of your expected settlement.