Pre-settlement Funding: Why Do You Need It?

Tell the government to stop limiting your worker rights.

See Why

Pursuing a civil case can take a long time, sometimes dragging on for years. As the time goes by, your rent, living expenses and other bills can rapidly pile up.

Pre-settlement funding is what you need in such a situation.

In a lawsuit, pre-settlement funding offers cash to the plaintiff before his or her case is finally resolved by a settlement or court decision. The cash can also help a plaintiff whose case has been resolved but is yet to receive payment.

It allows a plaintiff to cover medical bills, general living expenses and other immediate expenses as he or she waits for settlement.

Read more about different situations where you need pre-settlement funding.

It Is Not a Loan

You should bear in mind that pre-settlement funding is not a loan. The cash is for purchasing part of the recovery during a lawsuit made to a qualifying plaintiff. Should the plaintiff lose his or her case, the segment of recovery not purchased does not have to be transferred to the company.

However, before you can receive the funding, the finance company will have to take a close look at your case and some paperwork from your lawyer. If the company comes to a conclusion that your case is likely to win a judgment from the court, then you can get your cash in a few days.


Pre-settlement funding does offer a number of advantages.

For one, you do not have to part with any fees in order to get the cash. Rather, a majority of litigation finance firms operate on a basis of 'no cost unless you win’. This means that you will not have to pay anything back should you fail to win the case.

Another notable benefit of pre-settlement funding is that, if you succeed in getting it, you can use the cash for any of your pressing expenses: food, rent, mortgage and bills.

In case your injury prevents you from earning a living, it could be that you are falling behind on such necessities. This is something that makes pre-settlement funding the perfect provision for you.


All in all, you need to be cautious about something. Many insurance firms attempt to pressurize litigants into agreeing to an out-of-court settlement of an amount that is far less than the value of their actual case.

You could be tempted to agree to the offer without thinking of matching it against your case’s possible value. This could be because you could be in need of the cash at the time.

Rather than agreeing to such an offer blindly, it is advisable to consult with your attorney about the merits and demerits of taking the insurance firm up on its settlement.