Pre-settlement lawsuit funding

How it works.

If you are under financial pressure and need to borrow money from your lawsuit, learn how lawsuit funding works. Pre-settlement lawsuit funding lets you borrow money from your pending settlement fast. A lawsuit advance can be a lifesaver to plaintiffs in need of immediate cash. Apply for legal funding today.

How Lawsuit Funding Works 1

What is lawsuit funding?

Lawsuit funding is a non-recourse cash advance against the potential proceeds of your settlement payment. This cash advance comes in the form of a check or a wire and is provided to qualified personal injury victims. Essentially, lawsuit funding is a ‘no-win no-pay’ investment into litigation; therefore, it has no risk.

Risk-free legal funding.

Lawsuit funding is risk-free advance because the loan is not backed by recourse (such as your home). To have a loan backed by recourse means that a financial institution has the right to take legal action against you if you default on the payment. On the other hand, non-recourse funding is not backed by recourses and tends to have higher interest rates (depending on the settlement funding company) than traditional loans. The good news is that lawsuit funders view your expected settlement proceeds as collateral. While this varies by agreement, all legal funding is risk-free. This means that if your case does not settle or you lose, you are under no obligation to pay the money back. You walk with the money.

Lawsuit funding is risk-free because the loan is not backed by recourse (such as your home). To have a loan backed by recourse means that a financial institution has the right to take legal action against you if you default on the payment. On the other hand, non-recourse funding is not backed by recourses and tends to have higher interest rates (depending on the settlement funding company) than traditional loans. The good news is that lawsuit funders view your expected settlement proceeds as collateral. While this varies by agreement, all legal funding is risk-free. This means that if your case does not settle or you lose, you are under no obligation to pay the money back. You walk with the money.

100%

risk-free.

only pay

if you win your case.

How does lawsuit funding work?

The way lawsuit funding works is by evaluating your case merits and estimating the value of your pending lawsuit.

Disclaimer: Funding companies use certain requirements before approving a loan. The case must be solid and have a high probability of winning it. For settled lawsuits, a minimum settlement of $50,000 is required for funding. Your attorney’s co-operation is a must. Without it, we cannot fund your case.

Lawsuit advance funding: pros and cons. 

Pros

  • Accident lawsuits can be expensive, stressful, and time-consuming. Injuries from a car accident or any other personal injury can leave you financially crippled. Lawsuit advances help plaintiffs cover living expenses. They are an excellent option to get quick access to lawsuit cash.
  • Good credit or job history are not requirements for the advance. A settlement advance is based solely on the strength of your case.
  • Funds are released in as little as 2 hours from approval.
  • You can get advances from $1,500 up to $750,000 depending on the strength of your claim.

Cons

While, in theory, legal funding sounds like an amazing financial product, there are things to be aware of:

  • Most lawsuit advance funding comes with high-interest rates. Most lawsuit loan companies charge higher interest to make up for the risk of investing in your case. Please make sure the rate they show you on the contract is the rate they promise.
  • Most lawsuits take a very long time to settle, and rates can pile up quickly over a year or two. You should make sure that you are aware of the interest rate, if it compounds, and if it is capped. This means that a rate cap can maximize the repayment amount over time. 
  • Baker Street Funding offers simple interest rates ending in the third year. Contact us toll free today.

See our other legal funding products.

Ready to apply?

Need to pay medical bills or have other expenses? 

Select a funding service to apply. 

Attorney Requests

Lawsuit Loans

Litigation Funding

Personal Injury Loans

Settled Case Loans

Surgery Funding

Or just call us at 888.711.3599 to apply.