Legal Funding FAQs

What can we help you with? Answers to some of our most commonly asked questions in the legal funding industry are below.

FAQ's by category

What is pre-settlement funding?

Pre-settlement funding (or a lawsuit loan) is a risk-free cash advance for victims pursuing a legal battle. That means that you can borrow money against your future settlement or award to use to pay your bills and other expenses and not pay anything back until the case successfully concludes and the proceeds are paid.

Are lawsuit loans and pre-settlement funding the same thing?

You might hear pre-settlement funding referred to as lawsuit funding, settlement advances, lawsuit loans, lawsuit cash advances, or pre-settlement loans; however, it all has the same meaning. However, some lenders are engaging in misinforming consumers online by claiming that lawsuit loans must be paid back. The truth of the matter is that lawsuit loans, or pre-settlement funding, do not have to be paid if you lose your case. This is a non-recourse financing type of financial agreement and an investment in the outcome of your pending settlement or verdict. We are advancing money to you because we think your case is strong enough to win and pay us back.

If you don’t win, you don’t pay back your lawsuit loan. We take the loss.

What is the funding process?

  • The first step is to apply either online or by phone at (888) 711-3599.
  • Secondly, underwriting will analyze the legal merits and parties involved, the strength of your litigation, and the defendant’s ability to compensate for damages.
  • Once approved, you will get a funding contract that can be sent via email, fax, or FedEx.
  • Once you and your attorney complete the agreement, your funds will be sent to you within 1-2 hours on a business day before 3 pm (eastern time). If you fund your advance after 3 pm (eastern time), then your funds will be sent the next business day.

Pre-settlement funding qualification.

An attorney must represent you to pre-qualify. You must be 18+ to request funding. Your case must be secure and have a high probability of winning it.

How can lawsuit funding help me?

Pre-settlement funding can help bridge the gap between your accident and your settlement. If you need money but can’t work and have all types of bills because of your accident, a settlement advance could be the right decision for you. If you receive a settlement advance to help cover living expenses, it gives your attorney ample time to make sure you get the most value out of your settlement instead of settling sooner because you need cash now. A lawsuit advance helps you get through today so you get the most out of your settlement award tomorrow.

How much money can I get?

The highest amount we will advance you is 20% of what your case is worth at the momentif approved. The size of your lawsuit/claim and other crucial unique information about your case will be the key to advancing you with the funds you need. Baker Street Funding funds from its own private fund, and if we deny you, we work with companies that can offer to fund between $1,500 – $2,000,000 + depending on the strength of your claim.

How are funds disbursed?

Pre-settlement funds are sent directly to your personal bank account under your name or to the personal account of a family member under specific requisites and proof of account ownership. The money can also be overnighted via FedEx to your home address.

Can I get additional funding?

You can get additional funding as long as your case supports it. Baker Street Funding buys out most pre-settlement funding agreements from other companies. We offer plaintiffs the ability to consolidate their previous advances and save money on future payments. Not every case is large enough to justify multiple funding, but 80% of the additional claims we underwrite get re-approved for more funding.

Criteria to obtain additional funding

As long as your legal action is significant enough to warrant compensation, you may be able to get an additional advance.

  1. Your claim must have progressed since the last time you received a pre-settlement advance, either procedurally or through the plaintiff having further medical treatment.
  2. The case value needs to merit additional funding.
  3. There can not be any open appeals.

Are there any risks involved with pre-settlement funding?

No, pre-settlement funding (or lawsuit loans) have no risk. In the adversity that you lose your legal case, you will no longer be tied to paying anything back.

How long does it take to receive the cash advance?

We will get you your legal funds as soon as possible. We generally approve funding within 24 hours of receiving all case documentation. Once your application is complete and your attorney verifies the details of your case with underwriting, if you are approved for a lawsuit loan, you will receive a funding agreement for electronic signature or by fax the same or the next business day. Once you and your attorney sign the contract, your funds should be available within a few hours or, at the most, the next morning (business day).

Can I get a pre-settlement advance if I don’t have an attorney?

No funding company will provide funds without an attorney’s representation. Our underwriter will need to speak to your attorney in each and every case with no exceptions before agreeing to buy a portion of your coming settlement. If you need an attorney, please get in touch with us, and we will recommend you a great attorney.

Who can apply for funding?

You can apply for pre-settlement and post-settlement funding if you are represented by an attorney and have an active personal injury, civil rights, or employment claim.

Do I qualify if I don’t have a job or good credit?

Settlement funding is strictly based on your case’s merits and outcome; therefore, there is no job requirement, no credit check, and no monthly payments. Just like every investment, pre-settlement advances have a high risk for funding companies. The risk we take is that we do not get paid back if your case is not successfully settled or won.

What are Baker Street Funding’s interest rates?

Baker Street Funding’s contracts are custom-tailored to each case, and our rates are decided on a case-by-case basis. We have some of the lowest rates in the industry, and we typically price contracts anywhere from 2% flat for attorneys and from 2.95% to 3.4% monthly non-compounding for plaintiffs. The rate does not rise over time and is set until your case settles. To protect our clients, Baker Street Funding stops all charges if your case takes longer than three years to conclude. The most you will pay will be three years of interest. This eliminates the risk of exorbitant interest rate changes over time, especially if the case takes 3 years or more to conclude.

Does my attorney determine my approval amount?

Your attorney can and should advise you on choosing the right pre-settlement funding company. While your attorney can not pick what funding company you choose to work with, we encourage clients to speak to their attorneys throughout the lawsuit funding process to understand the requirements for approval.

Can I pay off my lawsuit loan before my case resolves?

Yes, you can pay off your lawsuit loan early without incurring a prepayment penalty. Remember, pre-settlement funding is non-recourse, so if anything goes wrong with your case and does not settle in your favor, and you have already started to pay off your loan, you won’t get those payments back.

What can I use a Baker Street Funding lawsuit loan for?

Our lawsuit loans are solely for any kind of important expenses such as medical bills, day-to-day costs, rent, etc., and they are not permitted to be used to pay attorney’s fees.

Am I a good candidate for a pre-settlement cash advance?

Baker Street Funding aims to revolutionize the legal finance sector, ultimately improving the system for every plaintiff in need. Today, we’re able to offer significant funding for plaintiffs facing a financial challenge.

What is the minimum and maximum I can borrow from my case?

With a Baker Street Funding settlement loan, the minimum amount you can take out is $1,500 in most states, and the maximum is $2,000,000 in select states.

Ready to get started?

Our legal funding team is here when you need us. Give us a call for a free consultation at (888) 711-3599.

Select a legal funding service to get started. 

Attorney Requests

Lawsuit Loans

Litigation Funding

Personal Injury Loans

Settled Case Loans

Surgery Funding

Or just call us at 888.711.3599 to apply.