Becoming a victim of a serious car accident caused by a negligent driver is hard enough. Discovering they are uninsured or underinsured only compounds the financial consequences you face from medical bills and the inability to work. Depending upon the circumstances, pre-settlement funding could be a financial safety net.
Pre-settlement funding is not a loan, although the term litigation loan is sometimes used. Instead, it is a cash advance against your pending car accident settlement. There are no monthly payments or credit checks. The money is repaid when you receive your settlement or award. It is non-recourse, so you do not have to repay the funds if your case doesn’t end favorably. In essence, the lender assumes the risk.
Pre-Settlement Funding and Uninsured or Underinsured Drivers
When the at-fault driver lacks sufficient insurance, funding may still be possible if the plaintiff has a strong uninsured or underinsured motorist (UIM) policy, if the at-fault party owns significant assets, or if a third party may be liable for the accident.
Insurance companies often pressure accident victims to settle quickly for less than what their claim is truly worth. Pre-settlement funding helps relieve that pressure by covering basic living expenses while their attorney builds the strongest possible case for full compensation.
Keep in mind that a settlement or verdict in a lawsuit can take over a year. Pre-settlement funding tides you over during that period, enabling you to pay rent, the mortgage, utilities, and other necessities. Most states do not limit how pre-settlement funding is used, but it is designed to help people stay afloat until their case is resolved.
How Pre-Settlement Funding Works
To qualify for car accident pre-settlement funding, you must be over 18, have a pending lawsuit, and have an attorney representing you. When filling out the online application, you must include your attorney’s name and contact information. The funding company consults with your lawyer about the strengths of your case and the expected settlement or judgment amount. Since the funding company takes all the risk, it must evaluate each case diligently.
If approved, the funding company sends an agreement to your attorney, who reviews the document and discusses it with you. While your lawyer will advise you about accepting pre-settlement funding, the final decision is yours. If you decide to proceed, once the funding agreement is signed and returned, expect your money within 24 to 48 hours.
Contact Mustang Funding Today
If you were seriously injured in a car accident due to a negligent and reckless driver and have a pending lawsuit, contact Mustang Funding today. Learn more from our ultimate guide to pre-settlement funding. Located in Wayzata, MN, we offer ethical institutional litigation funding to support justice.
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.
