If you’re in the middle of a personal injury lawsuit or another civil case, you may be facing serious financial strain. Between medical bills, lost wages, and everyday expenses, it’s easy to feel overwhelmed. That’s where pre-settlement funding comes in. But how does pre-settlement funding work, and is it the right solution for you?

Let’s break it down step by step.

What is pre-settlement funding?

Before we get into how pre-settlement funding works, it’s important to understand what pre-settlement funding is in the first place. It’s a financial arrangement that allows plaintiffs to access a portion of their potential settlement before their case is resolved. This is especially useful if you’re struggling to make ends meet while your case moves through the legal system.

Is pre-settlement funding a loan?

No, it is not a loan. We use the phrase “lawsuit loan” on our website because people often use this phrase to search for what we offer – cash advances against pending lawsuit settlements.

In reality, pre-settlement funding is not a loan because repayment is not required if you lose your case. Instead, we are buying a portion of your potential future lawsuit settlement from you. So, you get cash immediately, and if you win your case, we get an agreed-upon portion of that settlement money.

How Settlement Funding Works (1:30)

How much do settlement loans cost?

In other words, how do interest rates work for pre-settlement funding? Generally, lawsuit funding has higher interest rates than traditional loans because the lender (us) is risking not being paid back anything if the lawsuit fails.

However, at Nova Legal Funding we’ve designed our entire business to ensure that we’re able to offer the lowest rates in the industry. How do we do this?

How we offer the lowest rates in the industry:

  • We are selective. We only fund people with strong cases which means we don’t have to hedge our risk by charging inflated interest rates.
  • We have a low overhead. Unlike some of our big-name competitors, we’ve intentionally kept our operations small and streamlined. Our clients are the direct beneficiaries of this efficiency in the form of the lowest rates in the industry.
  • We don’t charge processing and application fees. Many of our top competitors charge high fees simply for processing your application. We don’t.
  • We don’t charge compounded interest. Instead, we have a fixed fee every six months, with a cap between 24 and 36 months (depending on the specifics of the case). 
  • The fee we charge is based entirely on the strength of your case. The stronger your case, the lower the fee you will pay. 
  • We guarantee to beat any competing offer. If we approve your case for funding, but you are offered a lower rate by one of our competitors, we’ll beat it, plain and simple.
Apply for a Pre-Settlement Cash Advance ⚡ Fast ( Apply in 2 min, find out if you qualify before today ends. )
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  • Repay $0 If you lose
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Benefits and considerations

When people ask, how does pre-settlement funding work, they’re often looking for ways to relieve short-term financial pressure. The biggest benefit is that you get cash when you need it—without adding new debt to your credit report. There’s also no employment check or monthly payment schedule.

That said, pre-settlement funding isn’t free money. It often comes with fees or interest, so it’s important to review terms carefully. Your attorney can help you evaluate the best options.

What does the process look like for applying and receiving pre-settlement cash?

The process for getting a lawsuit loan is simple:

  • You apply (no credit score or background check required, takes ~ 2 minutes)
  • We reach out to your attorney to get all the facts of your case
  • We assess the strength of your case to get you the best possible terms
  • If approved, we send you funds via wire transfer

That’s not to say that you shouldn’t educate yourself on the specifics. If you have more questions, we encourage you to contact us. Our friendly staff will be more than happy to provide you with answers about the settlement loan process. Contacting us obligates you to nothing.

Further Reading & Additional Resources

You may have more questions. The best way to get them answered is to give us a call at 800-760-0704. Our friendly team will answer all of your questions. We also have a ton of information on our website to help you understand how settlement funding works: