Pre-settlement funding gives a plaintiff a cash advance against an expected settlement or judgment while their lawsuit is still pending. A funding company reviews the strength of your case, advances a portion of its likely value, and is repaid from the eventual settlement — but only if you win. If your case does not succeed, you typically owe nothing.
What is pre-settlement funding?
Pre-settlement funding — sometimes called a lawsuit loan or lawsuit cash advance — is money provided to a plaintiff in an active personal injury or civil case before it settles. It helps cover living expenses, medical bills, and everyday costs while a case works its way through the legal process, which can take months or even years.
How does the pre-settlement funding process work?
The process is usually faster and simpler than applying for a traditional loan. It generally follows five steps:
- Apply. You or your attorney submit basic information about your case.
- Case review. The funding company evaluates the merits and likely value of your claim, working directly with your attorney.
- Offer. If your case is approved, you receive an offer for a portion of your expected settlement.
- Funding. Once you accept, the money is typically disbursed within one to two business days.
- Repayment. When your case settles, the advance is repaid from the proceeds. If you do not win, you generally owe nothing.
Is pre-settlement funding a loan?
Not in the traditional sense. Most pre-settlement funding is non-recourse, which means repayment depends entirely on the outcome of your case. Unlike a bank loan, there are no monthly payments and no personal liability — if your case does not result in a settlement or award, you do not repay the advance. Because repayment depends on winning, pre-settlement funding shifts the risk of a losing case from the plaintiff to the funder, which is also why it costs more than a conventional loan.
How much money can you get?
The amount is based on the estimated value of your case, not your credit score or income. Funding companies typically advance only a portion of the expected settlement — often in the range of 10 to 20 percent — to leave room for legal fees, medical liens, and your own recovery. The stronger and clearer your case, the more you may qualify for. A responsible funder will avoid advancing so much that little is left for you at settlement.
What does pre-settlement funding cost?
Because the funder takes on the risk of your case losing, pre-settlement funding usually costs more than a typical loan. Fees are commonly charged as a periodic rate that accrues over time, so the total you repay depends on how long your case takes to resolve. Before you accept an offer, ask for the funding agreement in writing, confirm whether the rate is simple or compounding, and ask whether there is a cap on the total amount you could owe. A transparent funder will answer all three questions clearly.
What types of cases qualify?
Pre-settlement funding is most common in personal injury and related civil claims, including car and truck accidents, medical malpractice, workers’ compensation, wrongful death, product liability, and premises liability such as slip-and-fall cases. Eligibility depends on the strength of your claim and, in almost all cases, on being represented by an attorney.
Is pre-settlement funding worth it?
It depends on your situation. Funding can be a genuine lifeline if you are facing financial pressure and at risk of accepting a low, early settlement just to pay your bills. But because it is expensive, it is best used when you truly need it — not as a first resort. Before you apply, ask whether you can bridge the gap another way, understand the full cost in writing, and talk it through with your attorney, who can help you weigh whether it makes sense for your specific case.
Frequently asked questions
Do I have to repay pre-settlement funding if I lose?
With non-recourse funding, no. If your case does not result in a settlement or award, you typically owe nothing. Always confirm that your agreement is non-recourse before you sign.
How fast can I get funded?
After your case is reviewed and approved, funds are often available within one to two business days. The main variable is how quickly your attorney can share the case details the funder needs to make a decision.
Does my credit score matter?
No. Approval is based on the merits and expected value of your case, not your credit history or employment. There is typically no credit check to apply.
If you are weighing pre-settlement funding, the two most important steps are to understand the full cost in writing and to talk it through with your attorney before you decide. A reputable funder will welcome those questions and give you clear, direct answers.
Last reviewed: July 14, 2026. This article is for general education and is not legal or financial advice. Laws and funding terms vary by state and change over time; for advice about your specific situation, consult a licensed attorney.
