Car Accident Pre-Settlement Funding
If you have a pending motor vehicle accident claim and need immediate financial assistance, pre-settlement funding can help.
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Is Pre-Settlement Funding Considered a Loan?
No, pre-settlement funding is not a loan. While we occasionally use the term “lawsuit loan”—since it’s a common search phrase—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.
Car Accident Cases Can Take a Year or More to Settle
Even if you’ve hired an attorney and a lawsuit has been filed, the time it takes to reach a settlement is hard to predict and can vary drastically. A survey conducted by lawyers.com found that the average car accident claim takes 10.7 months to resolve in the form of a settlement check. Respondents who hired an attorney for their claim reported an even longer timeframe – that it took an average of 18 months to conclude their cases successfully.
Cases that involve substantial injuries and high dollar figures can also take longer to settle because the insurance company will fight harder over them. These companies are profit-driven, and often seem to use tactics that prolong litigation and encourage plaintiffs to give up or accept less money than their case is worth.
Our application process is free, with no hidden fees or charges. And if you have any questions, our team is here to help. Contact us today to learn more about how pre-settlement funding can help you get the financial support you need during this difficult time or apply by filling out the form below.
How Auto Accident Pre-Settlement Funding Works
To qualify for auto accident pre-settlement funding, you must be at least 18 years of age, have a pending personal injury lawsuit, and a lawyer representing you. Your attorney must agree to share details regarding the strength of your case with the funding company. The defendant in the case must hold the majority of liability. If you meet these criteria, fill out an application on the funding company’s website.
The funding company wants specific information from you and your attorney. You must provide information about the nature of the motor vehicle accident and your injuries. The funding company reviews and evaluates your case and consults your lawyer to determine how likely it is to succeed. If it appears your case is strong and you are likely to win a substantial settlement or award, you are usually a candidate for pre-settlement funding.If the application is approved, the money is usually available within 24 hours.
Your pre-settlement funding amount is paid back when you receive your settlement or award. The interest rates and any additional charges on your pre-settlement funding and repayment are disclosed before you sign the contract so that you can make a fully informed decision. Always make sure you understand the terms and conditions of any agreement.
Regulations regarding motor vehicle accident pre-settlement funding vary by state.
What Determines the Amount of Cash That I Qualify For?
The amount of cash you may qualify for depends on several key factors, including the strength of your case, the severity of your injuries after a car accident, and the potential settlement amount.
Typically, plaintiffs may receive between 10% and 20% of their anticipated settlement amount after deducting applicable fees. Attorneys in civil cases generally work on a contingency basis and will receive a percentage of the settlement. Additionally, medical liens often take priority and must be paid before other disbursements are made.
For example, if your attorney anticipates a settlement of $500,000, your actual payout, after legal fees, liens, and other deductions, might be closer to $300,000. Based on that amount, you may qualify for between $30,000 and $60,000 in pre-settlement funding.
Remember, if you do not receive a settlement or win your case, you are not required to repay the funding.
How Plaintiffs Typically Use Pre-Settlement Funds
While there are generally no restrictions on how pre-settlement funding is used, most plaintiffs in car accident cases rely on it to cover urgent, day-to-day expenses during a financially difficult time. These typically include:
- Rent or mortgage payments – Maintaining housing costs is often the top priority after an accident, as falling behind on rent or mortgage payments can lead to eviction or foreclosure. Pre-settlement funding can provide the means to maintain a safe and stable living environment during a financially unstable period.
- Utility bills – Essential services such as electricity, gas, water, and trash collection must continue uninterrupted. Pre-settlement funds can help ensure these bills are paid on time, avoiding disconnections that could further disrupt daily life.
- Groceries and basic household necessities – Accident victims often face limited mobility or reduced income, making it difficult to meet day-to-day needs. Funding can help cover the cost of food, cleaning supplies, and other essentials that support personal and family well-being.
- Out-of-pocket medical expenses – Even with health insurance, accident-related injuries may require payments for deductibles, co-pays, uncovered treatments, rehabilitation, or prescription medications. Pre-settlement funding can help manage these costs while awaiting a resolution of the case.
- Transportation costs – Reliable transportation is critical for attending medical appointments, legal consultations, or other essential activities. Funding can be used for car payments, insurance premiums, maintenance, rideshare services, or public transportation fares.
- Childcare and education expenses – Children’s needs don’t pause during a legal claim. Funding can help cover daycare fees, after-school programs, school supplies, or tuition, ensuring children remain supported and stable during this time.
- Phone and internet services – Maintaining communication is essential for managing legal matters, staying in touch with healthcare providers, and handling family responsibilities. Pre-settlement funds can cover monthly bills for mobile phones and home internet.
Once essential living expenses are covered, plaintiffs are in a stronger financial position and less likely to feel pressured into accepting a settlement that undervalues their claim. While pre-settlement funding is typically used for basic needs, the funds are ultimately yours to use at your discretion.
Is Your Credit Score a Factor in Pre-settlement Funding?
Unlike with a loan, your credit score is generally not a factor in pre-settlement legal funding. Funding companies typically do not perform credit checks when evaluating pre-settlement funding applications. There is also no employment or income verification required.
Pre-settlement funding is based primarily on the strength of your legal case, not your credit score.
What are the Benefits of Pre-settlement Funding?
It can take a long time to settle a car accident lawsuit. In the meantime, you have medical bills and ordinary life expenses to pay. If your accident renders you unable to work, you could find yourself unable to pay your rent, mortgage, grocery, or utility bills. Insurance companies know that if they delay settlement for as long as possible, accident victims may settle for far less than they deserve out of necessity.
With pre-settlement funding, you receive money to cover your medical bills, living expenses, and other costs. There are no restrictions on how pre-settlement funds are used. Pre-settlement funding provides a financial “breather” so that you are not making decisions out of financial desperation. Your lawyer has more time to negotiate with the insurance company so that a satisfactory settlement is obtained.
Pre-settlement funding is non-recourse. The funding company takes all of the risks. If it turns out you do not receive a settlement or the jury’s verdict is not in your favor, you do not have to pay the money back.
Contact Us
To learn more about personal injury pre-settlement funding and whether you qualify, schedule a free consultation with Mustang Funding today. Since 2018, we have provided more than $150 million in funds to plaintiffs and attorneys.
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