How Pre-Settlement Funding Helps Plaintiffs Navigate Long Legal Battles

When someone is injured due to another party’s negligence, such as in a car accident caused by careless driving, filing a lawsuit may be the only path to securing justice and fair compensation. However, what many people don’t anticipate is just how long the legal process can take. Personal injury and civil lawsuits often stretch out over months or even years. During that time, injured plaintiffs may be unable to work and face mounting medical bills, rent, and everyday expenses—all while waiting for their case to move forward.

Pre-settlement funding offers a financial lifeline to help cover essential living expenses while a case is pending. In this article, we’ll explain how pre-settlement funding works, when it can be helpful, and what injured plaintiffs should consider before accepting an advance.

What Is Pre-Settlement Funding?

Pre-settlement funding, also known as a lawsuit cash advance, is a type of non-recourse financing available to plaintiffs involved in active lawsuits. Unlike traditional loans, this type of funding does not require a credit check, income verification, or monthly payments. Instead, it’s based solely on the merits and estimated value of your legal case.

The key feature of pre-settlement funding is that it’s repaid only if the plaintiff wins or settles the case. If the case is unsuccessful, the plaintiff owes nothing. This makes it a lower-risk option for those who cannot afford to wait months or years for a fair settlement.

Why Legal Funding Exists

Insurance companies and defense teams are known to use delay tactics that drag out cases, hoping that financially vulnerable plaintiffs will accept lowball offers. For people who have suffered serious injuries and are unable to work, the financial pressure can quickly become unsustainable.

That’s where legal funding comes in. A cash advance on a pending lawsuit allows the injured party to pay for everyday expenses like rent, groceries, transportation, and medical costs, giving them the breathing room they need to pursue the full value of their case.

Rather than settling prematurely due to urgent financial need, plaintiffs can continue negotiating or preparing for trial with the confidence that their immediate needs are covered. Pre-settlement funding allows them to focus on their recovery and legal strategy, rather than worrying about how to pay rent or afford groceries.

Based on the research conducted while writing this article, it's clear that the legal funding industry is expanding, and it's making a meaningful impact on the lives of plaintiffs facing financial hardship.

Providers such as Express Legal Funding have helped thousands of individuals bridge the financial gap between filing a lawsuit and securing a fair settlement. By offering non-recourse advances tailored to the value of each case, companies like these empower plaintiffs with the time and stability they need to pursue justice without being forced into premature, lowball offers.

How Pre-Settlement Funding Works

The process of applying for and receiving pre-settlement funding is relatively straightforward. It typically involves four main steps:

First, the plaintiff submits an application to a legal funding company. This usually includes basic contact information, the type of case, and their attorney’s details. Importantly, most funding companies require that the plaintiff be represented by a contingency-fee attorney, meaning the attorney only gets paid if the case is successful.

Next, the funding company contacts the attorney and requests documentation about the case. This can include accident reports, medical records, insurance policy information, and a summary of the legal claim. The cooperation of the attorney is essential, as they provide the details the funder needs to make a decision.

Then, the funding company’s underwriters evaluate the strength and estimated value of the case. They consider factors such as liability, available insurance coverage, damages suffered, and how far along the case is in the legal process.

Finally, if the case meets the company’s underwriting criteria, the plaintiff is offered an advance. The amount typically falls between 10 and 20 percent of the case’s estimated settlement value.

According to Express Legal Funding, that range allows room for other expenses, like attorney’s fees and medical liens, to be paid from the eventual settlement. Funds are usually disbursed within 24 to 48 hours of approval.

Pros and Cons of Pre-Settlement Funding

Like any financial product, legal funding comes with both advantages and important tradeoffs.

Benefits of Pre-Settlement Funding

On the positive side, it offers risk-free access to cash without the need for strong credit, employment, or collateral. Because repayment only occurs if the case is successful, it’s a safe choice for plaintiffs who may not qualify for conventional loans or credit cards.

It also levels the playing field against insurance companies that use delay tactics. With the financial pressure eased, plaintiffs can afford to wait for a more favorable settlement or even take the case to trial.

Potential Drawbacks and Cost Considerations

On the other hand, the cost of funding can be significant. Depending on the provider, interest may be charged as a fixed fee or on a compounding monthly basis. This means the longer a case takes to resolve, the more expensive the funding becomes. Plaintiffs who borrow too much or wait too long to settle may see a smaller portion of their settlement in the end.

That’s why it’s important to borrow only what is necessary and to fully understand the terms of any funding agreement before signing.

How Pre-Settlement Funding Differs from Traditional Loans

One of the most common misconceptions about pre-settlement funding is that it’s the same as taking out a personal loan, but the two are fundamentally different.

Pre-settlement funding is non-recourse, meaning repayment is only required if the plaintiff wins or settles their case. If the lawsuit is unsuccessful, the borrower owes nothing. This makes it far less risky than a traditional loan, where repayment is mandatory regardless of the outcome.

Because pre-settlement advances are based entirely on the strength and projected value of the legal claim, not the plaintiff’s financial background, they are often the only viable option for those who are unemployed or recovering from serious injuries.

This key difference helps explain why legal funding is increasingly viewed as a lifeline, not a liability, for plaintiffs caught in long, drawn-out legal battles.

Who Is Eligible for Pre-Settlement Funding?

Not every plaintiff or case qualifies for pre-settlement funding. The most important eligibility requirements include:

The plaintiff must have an active legal claim against a defendant, typically in a personal injury, wrongful death, medical malpractice, or civil rights matter.

They must be represented by an attorney working on a contingency basis. This ensures the attorney is incentivized to win the case and gives the funder confidence in the case’s viability.

The case must show clear liability and sufficient damages to justify an advance. This includes evaluating who was at fault, how serious the injuries are, and what kind of insurance coverage exists.

Cases that already have existing liens or previous lawsuit advances may still qualify for additional funding, but only if there is remaining settlement value available.

Final Thoughts on Plaintiffs Obtaining Financial Relief Through Advances on Their Settlement

Pre-settlement funding can be a valuable financial tool for plaintiffs facing long legal battles and urgent financial needs. It provides fast, non-recourse access to cash when it matters most, without the burdens of traditional loans or credit checks.

Still, it’s not a decision to take lightly. Plaintiffs should compare providers, review the terms, and consult with their attorney before accepting any offer. Borrowing responsibly and with full transparency can help ensure that legal funding supports, not jeopardizes, the ultimate goal of recovering a fair and just settlement.