Pre-settlement funding is not a loan. At Mustang Funding, we occasionally use the term “lawsuit loan” since it’s a common search phrase, but what we offer is technically different. Pre-settlement funding is a non-recourse cash advance provided in exchange for a portion of your potential future settlement. Unlike a traditional loan, you are not required to repay the advance if you lose your case. In essence, we assume the risk. You receive funds upfront, and if your case is successful, we collect an agreed-upon share of your settlement.
As a litigation finance company, we focus on high-quality, transparent capital solutions for law firms and their clients. Our mission is to empower the pursuit of justice for individuals and law firms nationwide. We’re happy to help you understand how pre-settlement funding works so you can decide if this is right for you. Contact us today for more information. We’d love to hear from you.
Traditional Loans vs. Pre-Settlement Funding
As noted, traditional loans require full repayment regardless of the outcome of your legal case, which means you remain personally liable even if you lose. These loans typically involve a thorough credit check, may require collateral such as property or assets, and come with fixed monthly payments that begin shortly after funds are disbursed. This financial obligation can create additional pressure during an already stressful time, especially if your ability to earn income is compromised due to your legal dispute or related injuries.
In contrast, pre-settlement lawsuit funding is a non-recourse cash advance, offering upfront funds to help cover legal costs or living expenses while your case is pending. Unlike traditional loans, eligibility is based on the strength and potential value of your legal claim, not your financial history. Repayment is required only if your case results in a favorable settlement or judgment; if you lose, you owe nothing.
Is Pre-Settlement Funding Right for You?
Pre-settlement funding may not be appropriate for everyone, but for many, it is a critical source of financial stability during the often lengthy litigation process. It can help bridge the gap between immediate financial needs and a future settlement or judgment. This type of funding may be the right solution for you if any of the following apply:
- You have a strong legal case: Funding companies are more likely to approve funding for cases with clear liability and a high probability of a favorable settlement or verdict. Commonly eligible case types include car accidents, class action lawsuits, workplace discrimination, premises liability, wrongful death, and medical malpractice, among others.
- You require immediate financial support: Even strong legal claims can take months or years to resolve, while essential expenses—such as rent, medical bills, and daily living costs—continue accumulating. Pre-settlement funding offers immediate, risk-free financial assistance.
- You are being pressured to accept a bad deal: If you are dealing with insurance companies making settlement offers that fall far below any standard of fair compensation, Mustang Funding helps level the economic playing field so you can hold out until justice is served. We have streamlined the process with a simple, one-page application you can complete in just a few minutes.
Read our Ultimate Guide to Pre-Settlement Funding to learn more so you can make informed decisions about your future.
Contact Mustang Funding Today
Our innovative and flexible litigation funding solutions ensure that no one is denied their right to a fair legal battle due to financial constraints. We achieve this mission through a commitment to transparency, integrity, and unwavering support for our clients as they navigate the legal landscape. Contact us today; our team members are always within reach and ready to talk whenever your funding needs arise.
About Mustang Funding
Mustang Funding, founded in 2018 and based in Wayzata, MN, is a litigation finance company dedicated to empowering individuals and law firms nationwide with transparent and innovative financial solutions. With over $170 million funded, 10,000+ checks issued, and more than 3,000 cases financed, Mustang provides plaintiff pre-settlement funding, law firm financing, and commercial funding to meet diverse client needs. Their commitment to transparency, integrity, and expertise sets them apart, offering tailored financial support to plaintiffs, businesses, and legal professionals. By bridging capital gaps and fostering access to justice, Mustang Funding continues to lead the legal asset investment industry with a strategic, inclusive, and forward-thinking approach.
