Pre-settlement Lawsuit Loans and Pre-settlement Funding, What is the Difference?

Pre-settlement Lawsuit Loan Information

If you seek pre-settlement financing, you should realize that there are a variety of options. You need to select the one that is most appropriate for you. Generally, lawsuit financing is divided into two categories – lawsuit loans and pre-settlement funding. Each is different. A lawsuit settlement loan is money you receive from a settlement loan company. Like the title says, it’s a loan. You receive a loan based on the expected outcome of the lawsuit. You’re required to pay the money back with interest whether or not the lawsuit is settled. On the other hand, pre-settlement funding is an advance and does not need to be paid back if you lose your case. For this reason, it should not be confused with a pre-settlement lawsuit loan.

While each case is different, there are advantages to pre-settlement funding from a company like Cash in Your Case. Unlike a lawsuit loan, we take the risk. We decide if your case has merit and send you money based on the expected outcome in the case. But the legal system is complicated. Just because your case seems straightforward, that doesn’t mean you’ll win. An insurance company might decide not to settle the case out of court and take its chances with a jury. The jury could then rule for less money than you expected or could rule against your case entirely. If you sought a pre-settlement loan prior to resolving the case, you’re required to pay that money back with interest whether you win or lose, meaning the risk is higher for a loan. That is not the case with pre-settlement funding. We won’t ask for the money back.

We understand this is a complicated process and you have already made some difficult decision after your injury. You’ve seen doctors and hired an attorney. You learned about the areas of the law that apply to your case, and your attorney advised you on the potential for a settlement. After all that, you filed the lawsuit. Unfortunately, the legal process is slow, and the opposing attorney has not interest in settling quickly.

This is why you seek pre-settlement funding. Say for example, you file a $50,000 lawsuit. A company might finance $15,000 before the lawsuit is settled and send you a check for that amount. The money can be used to pay medical expenses, mortgage payments and living expenses.

You might qualify for a pre-settlement funding if you have been injured in an accident when a teenager was texting and driving and crossed over the centerline. Or you could have been hurt when you slipped and fell on a wet floor at a supermarket. These are instances where you have a strong case and could qualify for a cash advance prior to the settlement of your case.

If you want to learn more about pre-settlement funding and how they differ from a pre-settlement lawsuit loan, we can help. We understand that you have a lot of questions and want you to understand the process. You can start by filling out a form on our website or you can call one of our customer service representatives at

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Qualify for an additional funding even if you Lose your case