Is pre-settlement funding the same as borrowing money against your lawsuit settlement?

The way pre-settlement funding works is it’s a non-recourse cash advance. This means that you, the “borrower”, are not obligated to pay back the funding if you don’t end up winning your lawsuit. In this way, you are not technically borrowing money against your lawsuit settlement.

Rather, the funder (us) is buying a portion of your expected future settlement. We will be paid an agreed-upon amount if and when your lawsuit is settled. The risk we take is that your case will not settle for a monetary award, and we will not be owed repayment.

But, in practice, isn’t it the same as borrowing against your lawsuit settlement?

Practically speaking, yes, getting a cash advance against your potential future lawsuit settlement is the same as borrowing money. That’s why it’s so often referred to as a “lawsuit loan”.

As with borrowing money, getting a pre-settlement cash advance allows you access to cash that you need immediately. And, in most cases, getting a cash advance against your pending lawsuit settlement will mean that you will make a repayment once you have the funds to do so.

In need of cash while you wait for your lawsuit to settle?

If you’re considering borrowing against your lawsuit settlement, we hope you’ll contact us to discuss your options. Our team of professionals will answer all of your questions and make sure that you fully understand what it means to get a non-resource cash advance against your pending lawsuit settlement.

Resources for learning more about pre-settlement funding