Understanding Pre-Settlement Funding: Debunking Myths & Helping Plaintiffs

If you're involved in a personal injury lawsuit and struggling financially while waiting for your case to settle, pre-settlement funding can be a lifeline.

Once considered an emerging concept, legal funding is now a well-established financial solution that helps plaintiffs cover essential expenses while their claims are pending.

Pre-settlement funding has gained mainstream recognition, with more law firms embracing it and tens of thousands of applications processed each month. However, despite its growing acceptance, myths and misconceptions persist. Some believe that lawsuit funding companies take advantage of vulnerable plaintiffs, disrupt legal proceedings, or operate without regulations. None of these claims are true.

Below, we debunk the most common myths about pre-settlement funding to help you make an informed decision.

Myth #1: Legal Funding Is the Same as a Traditional Loan

Unlike traditional bank loans, pre-settlement funding is non-recourse—meaning you only repay if you win or settle your case. If you lose your case, you owe nothing.

With a traditional loan, you are obligated to repay the principal amount along with interest, regardless of the outcome of your lawsuit. In contrast, legal funding does not add to your personal debt. A lawsuit funding provider evaluates the strength of your case rather than your credit score, making it an accessible option for those who might not qualify for a personal loan.

Some states require legal funding to be structured as a loan, meaning repayment may still be required in certain situations. However, reputable legal funding companies, like PrimeCare Network, work with plaintiffs to find fair solutions, including forgiving the debt when necessary.

Myth #2: Legal Funding Companies Interfere With Your Lawsuit

A major concern for plaintiffs and attorneys is whether a legal funding company will pressure them to settle quickly. The truth is, reputable funding companies do not interfere with legal proceedings.

Legal funding providers do not dictate settlement terms or influence legal strategy. Your attorney remains in control of your case, and their duty is to act in your best interest. Organizations such as the Alliance for Responsible Consumer Legal Funding (ARC) set industry standards to prevent interference. Additionally, many states have laws prohibiting legal funding companies from involving themselves in case decisions.

Myth #3: Legal Funding Companies Exploit Plaintiffs

One of the most damaging misconceptions is that legal funding providers take advantage of plaintiffs in financial distress. The reality is quite the opposite.

If you’ve suffered an injury and are facing medical bills, lost wages, and daily living expenses, a pre-settlement cash advance can provide much-needed relief. Unlike personal loans or credit cards, legal funding offers financial support without adding to your debt or impacting your credit score.

At PrimeCare Network, our goal is to help you bridge the financial gap so you can focus on achieving the best possible outcome in your case without financial pressure forcing you into a lowball settlement.

Myth #4: The Legal Funding Industry Is Unregulated

While legal funding was once an unregulated industry, this is no longer the case. Many states now have clear regulations governing lawsuit funding to ensure transparency and protect plaintiffs' rights.

Additionally, responsible legal funding companies, including PrimeCare Network, adhere to industry best practices and advocate for consumer protections at the state and federal levels. Regulations in states like Oklahoma, Nebraska, Indiana, Ohio, Tennessee, Maine, Vermont, and Nevada ensure that plaintiffs receive fair and ethical funding options.

Takeaway for Plaintiffs & Attorneys

As an attorney, ethical guidelines prevent you from directly lending money to your clients. However, you can help them explore alternative solutions, such as pre-settlement funding, to alleviate financial stress. By understanding the benefits of lawsuit funding, you can guide your clients toward informed decisions that support their well-being.

If you’re a plaintiff in need of financial assistance while waiting for your settlement, PrimeCare Network can help.

Apply today and get a pre-settlement cash advance!

📞 Call 888-474-8473
🔗 Apply Now: https://www.primecarentwk.com/apply-now

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.