Also known as a lawsuit advance, pre-settlement funding is a loan that is given to plaintiffs in the event of an ongoing court case. This loan is used to cater for any expenses that accrue in the duration of the legal case. In this case, these pre-settlement loans are primarily for injury claims.

It is common knowledge that a personal injury lawsuit can be draining. They are stressful physically, emotionally and financially. The frequent trips to the hospital together with the time taken away from work can cause one not to meet their financial obligations. They may have a problem paying their medical, utility, cellphone and mortgage bills among others.

This is where seeking for pre-settlement funding comes in. Injured persons can apply for these loans to help them get by month after month especially if they are immobile or on bed rest due to their injuries.

When a plaintiff applies for a pre-settlement loan from the various companies available, the pre-settlement companies together with their legal advisors sit down and review the case. If they conclude that the case has a basis and is viable, they approve the funds within 1 business day from the day of application. This is, of course, if there are no delays in meeting with their legal counsel or delays due to lack of some information from the plaintiff.

Below are some of the benefits of applying for pre-settlement funding.


Pre-settlement funding allows the plaintiff to make a down payment or pay off their mortgage in case they have a fear of losing their residence. Some plaintiffs use this money to cater to their large medical bills while other injured persons could opt to repair or buy a new car that has the necessary amenities to facilitate easy access in and out of the car.


If the defendant’s lawyers suspect you would want to end the whole court case early because of lack of funds, they will push to give you a poor settlement. One you do not deserve.  With pre-settlement loans, they give you the necessary boost to take go on with the case as long as it goes, significantly increasing the chances of you getting a much higher settlement for your claim.

  • Despite using the term ‘loan’, it does require a credit check or verification of employment.

As earlier stated, when a plaintiff seeks a pre-settlement loan, the company will investigate what kind of lawsuit it is and the chances of it winning. Basically means, the plaintiff will only pay the loan if the judge rules in their favor. Otherwise, the plaintiff will not pay back the money.

On the other hand, there are a few disadvantages of taking the pre-settlement loan.


Pre-settlement loans have a higher interest rate. Some plaintiffs pay back as much as three times the money loaned to them.


Plaintiffs have a hard time getting pre-settlement loans because lenders are very particular on whom they fund. These companies only take cases they are very confident about.

All in all, the benefits outweigh the risks. One final thing to note is that, when seeking a personal injury pre-settlement loan, do extensive research and ask relevant questions. Do not leave any stones unturned.

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