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What Is Pre-Settlement Funding? A Plain-Language Guide
Pre-settlement funding is a non-recourse cash advance available to plaintiffs with an active, unresolved lawsuit. A funding company provides money up front based on the expected value of the case, and the plaintiff repays it only out of the eventual settlement or court award — if the case does not result in a recovery, the plaintiff typically owes nothing back.
It exists because lawsuits, especially personal injury cases, often take a year or more to resolve, while bills do not wait. Pre-settlement funding bridges that gap.
At Settlement
Pre-Settlement Funding Is Not a Loan
The most important thing to understand about pre-settlement funding is what it is not: a loan. A loan is repaid regardless of outcome, requires a credit check, and usually comes with fixed monthly payments. Pre-settlement funding works differently in every one of those respects.
- No credit check or employment verification — approval is based on the case, not the applicant's financial history.
- No monthly payments — repayment happens once, from the settlement or award.
- Non-recourse structure — if the case loses, the client generally owes nothing back.
- Underwriting is based on case strength and expected recovery value, not credit score.
At Settlement
How Pre-Settlement Funding Works, Step by Step
1. Apply with case details
An applicant provides basic contact information, the type of case, the
date and state of the incident, and their attorney's information.
2. The funding company reviews the case with the attorney
Because eligibility depends on the case itself, the funding company
contacts the attorney of record to confirm the facts needed for
underwriting — things like liability, insurance coverage, and the
stage of the case.
3. The applicant reviews and decides on the offer
If approved, the applicant receives an offer detailing the amount and
repayment terms. There is no obligation to accept, and the attorney
typically reviews the agreement alongside the client before anything is
signed.
Eligibility
Who Qualifies for Pre-Settlement Funding
Eligibility generally requires an active civil case — commonly personal injury, but also workers' compensation third-party claims, wrongful death, and other case types — with an attorney already representing the plaintiff. The strength of the underlying claim and the realistic value of the expected recovery matter far more than the applicant's credit or income.
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Q&A
Frequently Asked Questions
Is pre-settlement funding the same as a lawsuit loan?
The terms are often used interchangeably, but pre-settlement funding is typically structured as a non-recourse advance rather than a traditional loan. Repayment comes only from the settlement, and if the case does not result in a recovery, the client generally owes nothing.
How much does pre-settlement funding cost?
Pricing varies by funding company and case, and is disclosed in the funding agreement before anything is signed. Applicants should review the total repayment amount and how it is calculated with their attorney before accepting an offer.
Will pre-settlement funding affect my credit score?
No. Because there is no credit check and no monthly payment obligation, pre-settlement funding does not appear on a credit report or affect a credit score.
Does my attorney have to be involved?
Yes. Funding companies work directly with the attorney of record to verify case details, and most agreements require the attorney to acknowledge the funding arrangement before funds are released.
How fast can I get pre-settlement funding?
Many funding companies, including Caseflow Capital, aim to complete case review within 24 hours of receiving the application and attorney confirmation. Funds are often sent within one to two business days of a signed agreement.
What can the money be used for?
There are typically no restrictions — common uses include rent, medical bills, utilities, and everyday living expenses while a case remains pending.
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Ready to Apply?
If you have an active personal injury case and need help covering expenses while it moves through the legal process, Caseflow Capital can review your application and respond within 24 hours.