Pre-settlement funding can improve your case outcome by reducing financial pressure, enabling your attorney to continue negotiating against deep-pocketed defendants. It also disrupts insurance companies’ common tactic of delaying proceedings to pressure vulnerable plaintiffs into accepting less than their claim is worth.
While pre-settlement lawsuit funding is sometimes referred to as a lawsuit loan, that term is inaccurate. It is a cash advance against your eventual settlement. Because it is non-recourse, you do not have to repay the amount if your case is unsuccessful. If you have questions, contact Mustang Funding today. We’d love to hear from you.
The Strategic Benefits of Pre-Settlement Funding During Litigation
Pre-settlement funding can contribute to a better case result. Here’s how:
- Reduces Pressure to Settle Early. When urgent financial needs are addressed, you’re less likely to accept a low settlement just to access quick cash. This allows your attorney to pursue a resolution that reflects the full value of your claim.
- It Expands Access to Justice. Most plaintiffs lack the financial reserves to sustain a prolonged legal battle against well-funded defendants like insurance companies. Pre-settlement funding helps level the playing field by providing the resources needed to stay in the fight and pursue a fair outcome.
- Provides Leverage in Negotiations. Pre-settlement funding can shift the balance of power in your favor during settlement discussions. Reducing the urgency to accept early offers driven by financial constraints enables your legal team to negotiate from a position of strength.
- Enhances Your Recovery. Relieving the burden of urgent financial concerns allows you to concentrate on your physical and emotional recovery, which may indirectly support your case, especially when the high cost of ongoing medical treatment is part of the claim.
- Prevents Debt Accumulation. Using pre-settlement funding to avoid high-interest loans or mounting credit card debt protects your long-term financial stability, which is important if your case outcome also includes compensation for economic losses.
Essentially, pre-settlement funding strengthens your position throughout the litigation process and supports fair and reasonable compensation for your losses and damages.
Other Benefits of Pre-Settlement Funding
We have streamlined the process with a simple, one-page application you can complete in just a few minutes. Other benefits include:
- No Impact on Credit. Applying for pre-settlement funding does not affect your credit score, and approval does not depend on your credit history.
- No Employment Verification Required. Your eligibility is based solely on the merits of your legal claim, not your employment status or job history.
- Risk-Free if You Lose. Pre-settlement funding is non-recourse, meaning you owe nothing if your case does not result in a settlement or court award. The funding provider absorbs the risk.
- Flexible Use of Funds. There are typically no restrictions on how you use the funds. Whether it’s legal costs, rent, groceries, or other essentials, you may use the advance as needed.
- No Monthly Payments. Unlike traditional loans or credit lines, pre-settlement funding requires no monthly payments. Repayment is from the proceeds of your settlement or award if your case is successful.
Understanding these key features and benefits is essential to understanding how pre-settlement funding works.
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. 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.
