Pre-Settlement Funding: A Financial Lifeline for Plaintiffs

When involved in a legal dispute, financial strain can become a significant burden.

Legal battles are often lengthy, and plaintiffs may struggle to cover daily expenses while waiting for their case to settle. Pre-settlement funding offers a solution by providing plaintiffs with immediate financial assistance.

What is Pre-Settlement Funding?

Pre-settlement funding, also known as a lawsuit cash advance, is a financial service that allows plaintiffs to access a portion of their anticipated settlement before the case is resolved. Unlike traditional loans, this type of funding is non-recourse, meaning repayment is only required if the plaintiff wins the case.

How Does Pre-Settlement Funding Work?

1. Application Process – Plaintiffs apply for funding by providing details about their lawsuit.

2. Case Evaluation – The funding company reviews the case’s merits with the plaintiff’s attorney.

3. Approval and Funding – If approved, funds are disbursed quickly, often within 24-48 hours.

4. Repayment – If the plaintiff wins the case, the funding company collects its portion from the settlement. If the plaintiff loses, no repayment is required.

Benefits of Pre-Settlement Funding

• Immediate Financial Relief – Helps cover medical bills, rent, and other living expenses.

• Risk-Free – Since repayment depends on case success, there’s no financial obligation if the plaintiff loses.

• Stronger Negotiating Power – Plaintiffs can avoid accepting lowball settlement offers due to financial pressure.

Considerations Before Applying

• Fees and Interest Rates – Pre-settlement funding can have high costs, so it's important to review terms carefully.

• Case Strength – Funding approval is based on the likelihood of a successful settlement.

• Alternative Options – Before opting for pre-settlement funding, plaintiffs should consider other financial resources.

Is Pre-Settlement Funding Right for You?

If you are involved in a legal case and struggling financially, pre-settlement funding may be a viable option. However, it is crucial to work with a reputable funding company and consult with your attorney before making a decision.

Conclusion

Pre-settlement funding provides much-needed financial relief for plaintiffs awaiting settlement. While it comes with costs, the benefits of immediate cash access and risk-free terms make it an attractive option for many. Always conduct thorough research and consult legal professionals to ensure this solution aligns with your financial needs.

PrimeCare Network provides pre-settlement funding, also known as consumer litigation funding, through various products depending on the state of residence or cause of action. In some cases, funding is provided in the form of a purchase agreement, where a portion of the expected settlement proceeds is assigned to the funding company. In other states, such as South Carolina and Colorado, funding may be structured as a pre-settlement loan (also known as a lawsuit loan). These transactions have key differences, so consumers should carefully review and understand the terms before proceeding with any funding company.