How Do Cash Advance Loans Against Pending Lawsuits Work?

Reading Time: 9 minutes
Pending lawsuit loans

A loan or a cash advance against a pending lawsuit is a portion of the future settlement you are going to obtain after your case settles in your favor.

Due to the protracted nature of pending lawsuit settlements, the demand for lawsuit loans has skyrocketed in recent times. As such, if you are looking to get pre-settlement funding, know that you are not the only one — there are countless other people out there doing the same.

Thankfully, you don’t have to look further because you just found the right lawsuit lending company to help you — Baker Street Legal Funding.

Because lawsuit claims can take a while to resolve, plaintiffs often face financial hardships, which tend to put pressure on them to settle early and settle for ridiculous offers from the defendant’s insurance company or defense attorneys.

If you have been backed into a complex place in your litigation and need financial assistance (as in cash advance on your pending pre-settled lawsuit or settled case), plaintiffs should consider Baker Street Funding’s lawsuit loans. 

Our funding services can take the financial pressure off you and your attorney and prevent you from making irrational decisions like settling for less than your case is worth. 

Before you apply for a lawsuit cash advance and sign on the dotted line, you must make sure that pending lawsuit loans are right for you. At Baker Street Legal Funding, we always insist that you familiarize yourself with the realities of this borrowing tool. 

Let’s step on the brakes for a bit and address the top 7 questions about pre-settlement legal funding that are making the rounds.

In this article:

Question #1: What are the release amounts for cash advances on pending lawsuit settlements?

Pending lawsuit loans (or loans against settlements) function differently than other consumer loans. The average funding size is between $5,000 and $10,000. Depending on the nature of your claims and how injured you are, the best lawsuit loan companies like Baker Street Funding offer up to 10% of your potential settlement check payment.

Before approving a cash advance on a pending lawsuit, first, underwriting reviews your case to give your lawsuit a present settlement value. The amount of money you will get approved for will be no more than 10% of the estimated value of your potential settlement. For example, if the current value of your settlement is $100,000, you will get an approval of no more than $10,000.

You may get approved to up to 20% from your case if you are awaiting multiple surgeries or have an impending settlement offer.

Once you accept the offered amount, the cash advance from your pending lawsuit should be sent to you pretty fast. You may receive the money through a check or have it deposited into your bank account.

At Baker Street Funding, we can negotiate on a custom amount to accommodate your financial needs. You can either get the total approval amount as a lump sum or installment payments, meaning you get a check every month for a period of time, which helps you save on interest.

Question #2: What factors can affect getting a cash advance on my lawsuit?

The strength of your case dictates how much money you can borrow on your case.

When weighing whether the value of your case is high, lenders first consider how strong your litigation is. 

In determining the strength of your case, different factors come into play, such as what law firm is representing you, how critical your injuries are, what the policy limits are, and if the defendant has declared fault. Reputable lenders require a personal injury case that is solid, and that the defendant is well insured. Having a strong case is essential for funding because it not only determines your approval odds but how much your loan will cost overall.

For example, an accident case that only has soft tissue injuries and physical therapy as a treatment for the life of the lawsuit, the cost of the loan will tend to be too high. A loan against a soft tissue injury lawsuit from most companies can cost you 80% a year to make it a viable funding option. It can be helpful to know that you can ask friends and family for a lending hand while making sure that you meet your needs. But if you’ve run out of financial options and you are still considering taking out a cash advance on your lawsuit in the near future, then understand what the consequences potentially are if your case is worth less than $50,000.

To avoid charging predatory rates, Baker Street Funding does not accept cases where there are only soft tissue injuries. However, if the victim has multiple surgeries (or catastrophic injuries), and the defendant is a commercial or government entity, whether the case is medical malpractice, wrongful death, or federal wrongful incarceration, they can get approved for high amounts and the lowest interest rate.

 While you are at it, it is always best to discuss with your attorney to determine your approximate settlement amount before applying for a cash advance on your pending lawsuit settlement. This way, you have a realistic expectation of how much of a cash advance loan can get.

Question #3: What interest rates do lenders charge on pending settlement loans?

Like every other profession, there are unethical and unprofessional entities posing as trustworthy lawsuit loan companies. These lenders dont fully disclose their interest rates on contract and often keep information from their clients. They can offer interest rates north of 200% and wont show you the whole contract. They often request that you go to your attorneys office to sign the contract without showing you the entire agreement.

Here is an insider tip.

 Always go for lenders that offer between 2% to 3.4% monthly non-compounding rates or 28% to 41% fixed interest rates annually. At Baker Street Funding, we are well-capitalized and can provide lower lawsuit loans rates than other lenders. We match or beat any funding contract. 

Baker Street Funding delivers low-cost pending settlement loans that are non-compounding, typically between 2% and 3% simple monthly. A non-compounding rate means that we don’t charge interest on the interest every month.

But that’s not all. The icing on the cake is that, unlike other companies, our rates are capped. Capped rates protect you from paying extra interest if your case takes longer than anticipated to settle. Let’s say your lawsuit takes 7 years to settle, your rate still ends in the third year, at the most.

One more thing, keep in mind since the rates accumulate on capital every month, its always best to take out only what you need so you can cover your immediate financial commitments. You can always re-apply for an additional pending lawsuit loan if you run our of cash.


Want to see if legal funding is right for you? Baker Street Funding has low rates and no hidden fees. See if you qualify today.

Question #4: Can plaintiffs apply for a pending lawsuit loan without the attorney’s cooperation?

Your attorney is expected to present the lender with the required case documents to qualify for a pending settlement loan. Often these documents include:

1. Medical records 

2. Police report

3. Ambulance report 

4. A current value of the case

5. Insurance limits 

To save you the stress of making these submissions, Baker Street Funding gets them from your attorney. We work with them to approve you for the best amount possible for your pending lawsuit loan.

Although your attorney cannot and should not deny you from getting pre-settlement funding, you may still be eligible to borrow money against your lawsuit if you choose to work with a lawyer that wants to help you.

A cash advance on a pending settlement or a lawsuit is easy to obtain if your attorney cooperates with the lender.

Question #5: Should I let my attorney know that I am applying for a lawsuit cash advance?

To make the legal funding process smoother and faster, it’s always best to notify your attorney beforehand about your intention to take out a loan against a pending settlement. Your lawyer can give you a realistic view of where your case stands. 

Since the lender needs to go through your case file with your attorney before approving, it is best to have your attorney in the know and carry them along at all times to avoid delays. 

Keeping them informed speeds up the funding process. When your attorney knows you are applying for funding, they will be quicker to respond

Last but not least, getting a lawsuit cash advance can buy your attorney ample time to build a strong case and potentially win the best settlement or award.

Question #6: What is the process of getting a cash advance on my pending lawsuit settlement?

At Baker Street Funding, we understand the essence of time and how much plaintiffs stand to lose if they cannot find the financial help they need. In addition to paying medical bills and catering to other financial commitments, a cash advance for a pending lawsuit could save both the plaintiffs and their families from any form of financial embarrassment like quit notices and repossessions. 

This is how pending lawsuit loans work.

First off, with a cash advance on your pending lawsuit, you don’t have to offer up resources because these advances are non-recourse. If you default on the loan due to your case not settling, you don’t have to pay back any money. Lawsuit cash advances are issued as lump sums or monthly payments, both deposited in your account every month for the agreed term.

This is how it works:

  • You start by filling out our short lawsuit cash advance application form online, or you can call us at 888-711-3599 to apply over the phone.
  • Our team will quickly evaluate your legal funding application and determine if your case qualifies for the cash advance.
  • Then we will email your attorney for further information about your claim. This evaluation takes 24 to 48 hours.
  • Upon approval, we will send a contract to be dually signed by you and your attorney.
  • Once we receive the signed contract, we will immediately send the settlement funds the same day, usually within two hours.

There you have it. Simple and straightforward, and we can agree that getting a cash advance against your expected lawsuit settlement from Baker Street Funding is indeed easy.

But that’s not all.

Beyond our easy pending lawsuit loan application process, Baker Street Funding also saves you the stress of credit and employment checks.

A bad credit score or history can leave plaintiffs with little or no resources to continue their legal battles but don’t let that hinder your chances of getting approval for a Baker Street Funding lawsuit cash advance. We do not check your credit status nor your job history.

Considering all we have discussed so far, we leverage the best technologies to ensure plaintiffs get a lawsuit cash advance without breaking a sweat. 

Question #7: What types of claims are eligible for lawsuit cash advances?

A variety of factors will influence which type of lawsuit claims are eligible for a cash advance like how much money you plan to take out, your attorney’s collaboration, and how strong your case is.

Baker Street Funding funds most types of personal injury and civil rights claims. Here we will show you some of the most typical cases we finance. 

Medical malpractice

The most popular type of cases we fund are medical malpractice lawsuits. The approval odds for forthcoming medical malpractice settlement claims are very high as long as there is an expert report but other factors can apply.

Car accidents

Loans against lawsuits that involve car accidents are also very popular. The traffic accident suits that tend to get approved the most are the ones that have a strong liability against a well-insured defendant and where the injuries require surgical intervention. The rate loan will be lower than other cases as long as the requested amount exceeds $10,000.

Wrongful death

Loans against wrongful death claims typically have some of the lowest rates around with Baker Street Funding. This type of claim is simple to fund, nonetheless, an attorney must be present at all times due to the delicacy in the circumstance.

Slip and falls

Loans against slip and fall lawsuits can be a bit tricky to release. These claims are pretty typical however extra documentation such as proof of negligence is required to analyze the case’s worth before releasing the approval. 

Wrongful imprisonment 

Loans for wrongful imprisonment lawsuits are easy to obtain as long as a certificate of innocence and the summons and complaint are available. These documents help you qualify for the cash advance with impressively low rates.


To learn more on what types of cases we fund, visit our Cases We Fund page here

Getting a pending lawsuit loan from a lender that cares.

Baker Street Funding is in the business of providing much-needed financial support to personal injury victims and civil rights claimants, while their attorney fights for the compensation that they are rightfully due in their lawsuit.

Insurance companies are powerful entities, and because of that, they can to delay paying out compensation in civil cases for years. They try to fight every claim so that they can pay the lowest amount possible for your injuries and damages.

Baker Street Funding helps you level the playing field against these large insurance companies to provide you with financial resources to pay your bills and help you avoid taking a smaller settlement than you deserve out of desperation.

At Baker Street Funding, we pride ourselves on providing victims with financial solutions to not only give them the cash they need but tailor our advances to make sure that it is their best financial decision at the time. We strive to educate everyone on the funding process to make sure that victims are familiar with the risks and repayment of the advance.

Plaintiffs who find themselves in financial distress during litigations have overwhelmingly chosen us because of the high level of service, low rate offers, and quick funds. We encourage you to compare our financing against our competitors and work with whoever makes you feel most comfortable.

To learn more about how a pending lawsuit loan may be beneficial for you, you can reach out to us for a professional guide and free consultations. Remember, a pending lawsuit loan is a cash advance based on your pending settlement proceeds provided on a contingency basis, meaning you owe us nothing if you lose the case. 

Ultimately, lawsuit cash advances are 100% risk-free.

See some of our funding products

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.