The minimum anticipated settlement amount for pre-settlement funding eligibility varies by lender. Some funding companies accept cases with a projected value of $20,000, while others will not consider cases worth less than $200,000 or higher.
At Mustang Funding, the decision primarily hinges on the strength of your case, the likelihood of a favorable outcome, and the anticipated settlement value. However, certain states have specific thresholds: in Colorado, the minimum case value must be at least $75,000, and in North Carolina, it must be at least $25,000 to qualify for legal funding. Have questions about your case? Contact us today. Our team is eager to provide the answers you need.
Determining Case Value
In general, your lawyer and lending team determine case value by considering the following factors:
- Clear liability
- Severity of injuries
- Current and future medical bills
- Strength of evidence
- Detailed documentation of injuries, medical expenses, and lost wages
- Financial outcome of similar cases
Your lawyer’s legal team verifies all case details for the lender. Much also depends on the defendant’s insurance policy limits and coverage, as well as their assets. In addition, the insurance company’s history of handling similar claims can help the lawyer and lender anticipate the likely settlement range.
Keep in mind that pre-settlement funding is non-recourse. You do not have to repay the money if you do not receive a settlement or a favorable jury decision. The lender assumes the risk.
How Much Can I Receive from Pre-Settlement Funding?
Plaintiffs typically receive between 10% and 20% of the estimated settlement amount in pre-settlement funding. For example, if the attorney and lender estimate a $1 million settlement, the plaintiff might be approved for between $100,000 and $200,000. However, the actual amount offered depends on the case’s strength, estimated value, and the specific policies of the funding company.
Mustang Funds provides responsible and transparent pre-settlement funding services to litigants from coast to coast. Over the years, we’ve worked with over 1,000 U.S. law firms and signed over 10,000 checks.
In most states, there are no limitations on how pre-settlement funding recipients spend the money. Legal funding is designed to pay for the necessities of life, such as:
- Rent or mortgage
- Car payments
- Food
- Medical expenses
- Utilities
If the aftermath of the accident has caused you to run up debts, paying them down is another way pre-settlement funding can provide peace of mind during this stressful time.
Contact Mustang Funding
If you need money to pay bills while your case winds its way through the legal system, pre-settlement funding can provide a financial lifeline. Learn more from our ultimate guide to pre-settlement funding. Get started today by filling out our online application, and one of our team members will promptly assist you after submitting your application – we look forward to speaking with you soon.
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.
