Non-recourse funding for auto accident victims is a cash advance on a pending lawsuit that must only be repaid if you win or settle your case. If you were involved in a car accident and need to access your potential settlement award before the conclusion of the case, then you may be eligible to apply for this type of advance.
With non-recourse funding, the funding company assumes the risk of repayment. Because they review and make their decision to advance funds based on the merits of your case, they cannot demand repayment based on their bad decision.
Recourse vs. Non-Recourse Funding
Advance funding is either recourse or non-recourse.
Recourse funding is secured by some form of collateral, such as a car. Stop making the payments, and the lender will take it back. If the amount owed exceeds the vehicle’s value when sold, the lender can even pursue additional assets to recover the shortfall.
With non-recourse presettlement funding, the funding company is responsible if the recipient of the advance can’t repay the principal.
How to Qualify for Non-Recourse Funding
To qualify for non-recourse funding after an auto accident, you must meet two requirements:
- You have an active personal injury case, and
- You are represented by an attorney.
When you apply, the funding company works directly with your lawyer to review the details of your claim, such as medical records, accident reports, and the expected outcome of your case. Approval is based on the strength of your lawsuit, not on your credit history or employment status. This means you may still qualify for an advance even if you are out of work due to your injuries.
Benefits of Non-Recourse Funding
Non-recourse funding offers peace of mind for accident victims who need financial relief while waiting for their case to settle. Because repayment is only required if you win or settle your case, you do not carry the burden of monthly payments or the risk of owing money if the outcome is not in your favor.
The process is fast, with funds often available in as little as 24 to 48 hours and no credit checks to worry about. For many auto accident victims, this funding provides the breathing room needed to cover everyday expenses. At the same time, their attorney continues negotiating for the settlement they deserve.
Contact Us
If you were seriously injured in a car accident and are awaiting a settlement but need money now, Mustang Funding can help. Learn more from our ultimate guide to pre-settlement funding.
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.
