Funding
Pre-settlement funding
Pre-settlement funding is a non-recourse cash advance against a pending legal claim, repaid from the settlement if the case recovers and canceled entirely if it does not.
It is not a loan. There is no personal repayment obligation, no monthly payment and no credit consequence, because the money is repaid from the case rather than from you.
It exists because injury cases take months or years while the injured person's bills continue arriving weekly. The gap between those two clocks is the whole product.
Related terms
- Post-settlement funding — Post-settlement funding is a cash advance taken after a case has settled but before the settlement money has actually been disbursed.
- Non-recourse — Non-recourse means an advance can be repaid only from a specific source — here, the proceeds of your case — and the person who received the money is not personally liable if that source produces nothing.
- Lawsuit loan — "Lawsuit loan" is the common search term for a pre-settlement advance, but it is not accurate — a genuine advance is non-recourse and creates no personal debt, while a loan is owed regardless of how the case ends.
Need the money rather than the definition?
Apply in two minutes, or call 813-798-5528 and we will explain any of this on the phone.