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Pre-Settlement Funding vs. a Structured Settlement

These two terms get confused constantly, but they solve different problems at different points in a case. Pre-settlement funding gets you cash while your case is still pending. A structured settlement reorganizes how you receive money after your case has already resolved.

Understanding the difference matters because plaintiffs sometimes use both — just not at the same time, and not for the same reason.

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Timing

Before the Case Resolves vs. After

Pre-settlement funding is available while a lawsuit is active and unresolved — it gives a plaintiff cash now, before the case has a final value.

A structured settlement only comes into play once a case has actually settled or reached a verdict, and the plaintiff is deciding how to receive the award.

A plaintiff can't structure money from a case that hasn't resolved yet — that's the gap pre-settlement funding is built to fill.

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How Each One Actually Works

Pre-settlement funding is a non-recourse cash advance against the expected value of a pending case. Caseflow Capital reviews the case with the plaintiff's attorney and, if approved, advances a portion of the anticipated recovery. There's no monthly payment, and repayment happens only out of the eventual settlement — if the case doesn't result in a recovery, the plaintiff generally owes nothing back.

A structured settlement works differently: instead of taking the full award as a single lump sum at disbursement, the plaintiff agrees to receive it as a series of payments over time, often through an annuity. It's a decision about how to receive money the plaintiff has already won — not a way to access money before the case ends.

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When Each One Makes Sense

Pre-settlement funding tends to make sense when a case is taking longer than expected and the plaintiff is under financial pressure — rent, medical bills, lost income — that could otherwise push them to settle for less than the case is worth.

A structured settlement tends to make sense for larger awards, especially in catastrophic-injury or long-term-care cases, where steady payments over time can support future medical costs and reduce the risk of spending a large lump sum too quickly. The two aren't competing options; they address different stages of the same case.

Q&A

Frequently Asked Questions

What is the main difference between pre-settlement funding and a structured settlement?

Timing. Pre-settlement funding provides cash while a case is still pending and unresolved. A structured settlement is a payout arrangement that begins only after a case has already settled, converting a portion of the award into scheduled future payments instead of a single lump sum.

Can I use both at different points in the same case?

Yes. It's common for a plaintiff to use pre-settlement funding to cover expenses while the case is active, then decide — once it actually settles — whether to take the remaining proceeds as a lump sum or structure some or all of it.

Is pre-settlement funding a loan?

No. Caseflow Capital's funding is a non-recourse cash advance against the expected value of a pending case, not a loan. Repayment comes only from the settlement, and only if the case results in a recovery.

Who typically uses a structured settlement?

Plaintiffs in large or catastrophic-injury cases often consider structuring some of their award to provide steady income over time, particularly when future medical care or lost earning capacity is a major part of the case's value.

Does taking a cash advance affect my ability to structure my settlement later?

The advance is repaid out of the settlement proceeds at disbursement, and whatever remains after fees, liens, and the funder's payoff is yours to take as a lump sum or structure, the same as it would be without an advance.