How Pre-Settlement Legal Funding Companies Analyze A Case?

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How pre-settlement funding companies analyze a case

What factors do pre-settlement loan companies consider when evaluating a case?

Whether you have an unexpected emergency expense or need to pay for a medical bill, it helps to know what a pre-settlement loan company looks for when they evaluate your lawsuit loan application.

The pre-settlement funding process consists of the analysis of your case for the purpose of underwriting a legal advance through three critical factors.

Here are a few items virtually all settlement funding companies consider before approving funding for a plaintiff: fault, injuries, and insurance. Let’s take a look at how lawsuit funding companies look at these factors.


The first thing the funding company looks at is the fault; all the facts surrounding the incident, as well as the police report (if applicable), or any other supporting documents to verify that the defendant in your case is at fault.


In accident cases, the second thing a pre-settlement advance company will look at is the injuries.

Ambulance and emergency room reports and any other medical files so that underwriters fully understand the extent of your injuries.

If needed, many lawsuit lending companies also provide surgery funding to help you pay for medical procedures as a result of the accident.


Finally, the pre-settlement loan company will look at the defendant’s insurance coverage.

This part is simple: underwriting will ensure the defendant in the case was sufficiently insured to cover the damages and injuries that resulted from the incident.

How does the pre-settlement funding approval process work?

Your application 

A team of pending settlement loan advisors will handle your application’s intake and review. Subject to several factors, you will either be pre-funded in-house or with one of our partner firms with a relationship-based rate. Your application acceptance will be based on our initial phone call, where you will provide publicly available information about your claim. If interest is expressed, underwriting may require further documentation and require a scheduled call with our attorney.

The process begins with the settlement loan company contacting your attorney to find out more about your case so that they can determine whether or not it’s a reasonable risk.

Remember, they only get paid if your attorney collects money for you. Since attorneys also work on contingency, there’s a good chance that if your attorney thinks your case is worth investing in, then the funder will agree. 

Your attorney 

The pre-settlement funding company will want to know how the accident happened and how severe your injuries are.

Our team will work with your attorney to ensure our underwriters understand your case and get you the most available funding.

Baker Street Funding requires you to be represented by a bar-licensed attorney and for that attorney to participate in the due diligence process.

Remember, the faster your attorney responds to the funder’s questions, the quicker your pending lawsuit loan application will get approved.

Our underwriter 

The case review consists of a call with your attorney to address any questions about your case. After that conversation, our underwriter will issue an approval or denial, depending on how high the value of your case is. If approved, we will send out paperwork for you and your attorney to sign.

Your approval amount 

The legal funding amount will be based on how much money the underwriters believe your case will likely settle for.

For example, underwriting will not loan somebody $100,000 for a case where the injuries claimed are a strained neck and back with a few visits to a chiropractor.

A six-figure loan is only likely for a claim with catastrophic injuries and prolonged disability. The loan offer you receive from most lawsuit loan companies is usually enough to be helpful. 

Your funds

Once you and your attorney sign the funding contract, upon us receiving the signed agreement, you should receive your loan quickly, sometimes on the same day. We will immediately distribute the cash in the manner you choose.

The money can either be sent by bank wire straight to your bank account or a certified check to the address of your choosing via next-day FedEx.

There’s nothing else for you to do until your case is settled. If your case turns out to be more severe than you initially thought, such as requiring surgery or long-term disability, you might be able to get additional funds.

At Baker Street Funding, we give you the inside scoop on pre-settlement funding by covering a variety of ... financing and legal topics to help you made the best financial decision for you and for your case. Our experts break down complex ideas in a way that's easy to understand so you can stay informed on current trends as well as tips and fact checked information by the CEO and founder, Daniel Digiaimo. Furthermore, Despite its name, consumer legal funding is not a loan. If you don't win your case, no payment needs to be made back. To avoid confusion and simplify matters on, we'll use the word "loan" throughout this article.

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