How to Get a Cash Advance on a Pending Lawsuit (2025)

Because plaintiff funding is a relatively new industry there is a gap in consumer knowledge. The issue is made worse when a cash advance on a pending lawsuit is conflated with a traditional personal loan. They are not the same. This has resulted in the public being misinformed, leaving room for companies to take advantage of unsuspecting plaintiffs and their attorneys.

Like anything else, the key to getting a fair deal on a cash advance on a pending lawsuit is knowing the ins and outs of the process before you apply.

This post will show you how to…

Get the full amount of cash you need against your pending settlement
Get the lowest lawsuit loan interest rate possible
Secure a pending lawsuit loan without upsetting your lawyer
Get your cash as fast as possible

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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What Is a Settlement Case Advance?

A cash advance on a lawsuit settlement is when you promise a portion of your future settlement in exchange for cash. Many plaintiffs do this when they need money to cover basic expenses while they recover, such as their mortgage/rent, water, electric bill, phone bill, groceries, and more. Basically, the lender buys a portion of the settlement in exchange for immediate funds.

Can I Borrow Money from a Pending Lawsuit?

Yes! As long as you have a pending lawsuit that involves a personal injury and you have legal representation, you can apply for a cash advance through Nova Legal Funding. While we are selective when it comes to lawsuit cash advances, we work directly with your attorney to understand the details of your case and the likely outcome.

Understanding the Benefits and Risks of a Cash Advance on Pending Lawsuits

A cash advance on a pending lawsuit can provide vital financial relief when you’re facing mounting bills and expenses while awaiting your settlement. It’s crucial, however, to weigh the benefits against the potential downsides to make an informed decision. There are a few benefits to a cash advance on lawsuit settlements, including:

Immediate access to funds. You can use the advance to cover essential costs such as medical bills, rent, or daily living expenses.
No upfront payments. Unlike traditional loans, repayment is contingent upon the outcome of your case.
Non-recourse structure. If you lose your case, you’re typically not required to repay the cash advance, minimizing your financial risk.

Though these benefits are great, it’s also important to understand the risks of ANY type of cash advance. In the case of lawsuit loans, these are some of the risks you may encounter:

High interest rates. Some funding companies charge steep rates, which may significantly reduce the amount you receive from your final settlement.
Reduced settlement payout. The more you borrow, the less you will take home once your case resolves.
Dependency on case strength. Approval is contingent on the strength of your case and the expected settlement amount.

Understanding these aspects can help you decide whether a cash advance on a lawsuit settlement is the right option for you. However, if you’re ready to move forward in the process, here are some tips for finding the right pre-settlement funding.

8 Tips for How To Get a Loan on a Pending Settlement

Finding the right company to provide a cash advance on a pending lawsuit can be challenging. There are many lenders out there who all tout their process. However, it pays to be cautious when looking for a solution. Here are some tips to help make the process a little easier and some signs of a good lender.

1. Many Companies Are Not Direct in Explaining the Cost of the Lawsuit Loans They Offer.

Always ask what the interest rate is. When a company charges high rates, they are less likely to be straightforward with you when you ask about it. Before answering any of their questions when you call, ask them what they charge. If the representative doesn’t give a direct answer, be very wary.

2. Applying With Brokers Is Expensive, Slow, and More Likely To Aggravate Your Attorney.

Avoid working with brokers and only deal with direct loan companies. Lawsuit loan brokers can add an unnecessary 15-20% in cost to your transaction. Even worse, they will send your case information to dozens of different funding companies, all of which will call your attorney’s office at the same time. Needless to say, your attorney will not be happy.

3. Your Law Firm Will Respond to a Funding Company Sooner if You Mention Their Name in Advance.

Before applying for pending lawsuit loans, notify your attorney first. This will help your law firm be prepared for any document requests by the funding company. Remember: the whole process occurs between the funding company and your attorney’s office. Keeping the two parties in sync does wonders for expediency.

4. Finding the Right Company for Your Case Is Tough.

Ask your lawyer if he or she regularly works with or is aware of a professional pending lawsuit loans company. Why risk trying a new company if your lawyer already has a working relationship with one? Nonetheless, you must stay vigilant—just because your law firm works with a funding company doesn’t mean it’s the right one for you.

5. The More Questions You Can Answer About Your Case, the Fewer Questions the Funding Company Will Have for Your Attorney.

Know your case like the back of your hand before applying. To get the process moving along faster, review all the general facts of your case before calling to apply. Every question you answer is one less question your attorney will have to spend time answering.

6. Funding Companies Move as Fast as Your Attorney Sends Them Your Case Documents. This Often Takes Time as Law Firms Tend To Move Slowly.

For faster service, come prepared with case documents. If you want to get the ball rolling sooner, collect the following information from your attorney prior to applying: the filed complaint, key medical reports, your demand letter and the police report (if you have a personal injury case). These are the general documents a funding company would request from your law firm. Having these documents available ahead of time will help you skip this step.

7. The Loan Amount You Qualify for Is Equal to 10-20% Of Your Case’s Entire Monetary Value.

Ask your attorney for the estimated value of your case before applying. This will help you expect a realistic amount when you apply for loans against settlements or lawsuits. Approximately knowing the amount you can qualify for will help you better manage your expenses down the line.

8. Pending Settlement Loans Can Be Expensive, So Only Request What You Need.

After finding a direct funding company with low rates, only take what you truly need to survive. While the money is yours to spend as you wish, it is recommended you only use the cash for living expenses and other necessities.

How Does the Process Work?

If you decide to move forward with a cash advance on a pending lawsuit, here’s what the process generally looks like:

Initial application. Submit an application to a funding company, providing details about your case.
Attorney collaboration. The funding company will work directly with your attorney to gather necessary documentation, such as medical records and case filings.
Case evaluation. The lender evaluates the strength of your case, including liability and expected settlement amount.
Approval and terms. If approved, the company will offer terms that outline the amount of the advance and the repayment conditions.
Receiving funds. Once you agree to the terms, you’ll receive the funds, often within 24-48 hours.

This streamlined process ensures you can access funds quickly, but it’s essential to review all terms carefully before accepting an offer. When exploring options for a cash advance on a pending lawsuit, asking the right questions can protect you from hidden fees and unfavorable terms.

Why Case Strength Matters

The strength of your case is a key factor in determining whether you’ll qualify for a cash advance on a lawsuit settlement. Lenders evaluate several elements, including:

Liability,
Damages, and
Insurance coverage.

Ensuring your attorney has all the necessary documentation can increase your chances of approval and secure better terms. So, let’s go over why these aspects of your case are important to lenders.

Liability

The main question your application should answer is this: is the opposing party clearly at fault? Clear liability is a critical factor for lenders because it significantly reduces uncertainty. If it is evident that the opposing party is responsible for the damages, it improves the likelihood of a favorable settlement outcome, giving lenders confidence in your case’s potential to yield repayment. Thus, providing detailed police reports, witness statements, and other evidence of liability can strengthen your application.

Damages

Comprehensive documentation of damages is essential for demonstrating the value of your claim. Medical records, invoices for treatment, and proof of lost wages provide a clear picture of the financial impact of your injury. This information helps lenders assess the potential settlement amount, which is crucial for determining the size of your cash advance. Ensuring damages are thoroughly documented often leads to better funding terms.

Insurance Coverage

Another aspect of the case that lenders look at is whether the defendant has adequate insurance to cover the settlement. This is because insurance provides a reliable source of repayment if your case is successful. Without adequate coverage, lenders may view your case as too risky, even if liability and damages are clear. Discussing insurance details with your attorney and providing evidence of the defendant’s policy can reassure lenders of your case’s viability.

4 Questions to Ask Before Applying for a Lawsuit Cash Advance

Never apply for a cash advance on a lawsuit settlement unless you are absolutely sure of the process. Many lenders won’t bring up deal-breakers unless they are asked. Some might even dodge questions about interest rates, extra fees, and payment requirements. Before you sign, make sure you ask the following questions.

1. Will I Be Required to Repay the Cash Advance if I Lose My Case?

If the answer you receive is anything but a clear and resounding ‘no’, it’s suggested that you move on. Under no circumstance should you have to repay the advance on a lawsuit if you lose your case. A credible funder will only expect repayment if you win your case. Legal funding is supposed to be non-recourse, which, unlike a loan, carries zero risk to the plaintiff. This is because repayment is contingent upon you winning a recovery — if you lose your case it should be your right to keep the money for free.

2. What Fees and Rates Does Your Company Charge?

Always know what you’re paying before signing up for a lawsuit cash advance. Most funding companies assign rates based on the risk-profile of a case, while other have fixed rates for all types of cases. You need to know if your interest accrues monthly or if a fixed payback is assigned for defined ranges of time. Always ask the company’s representative if the rate is compounded monthly or if a fixed payback is expected.

As a usual guideline, anything below 5% per month is considered the industry standard. Be wary of lawsuit cash advance services that charge interest above 5%. The timing of when you’re applying for a lawsuit cash advance must also be taken into account. The earlier you apply during litigation, the larger the payoff will be once your case is settled one or two years down the line. A safe way to protect yourself is to find a lawsuit cash advance company with rates below 4% per month.

3. Does Your Company Require Early Paybacks or Monthly Payments?

If the answer to either of these questions is ‘yes’, do not work with this company. As mentioned before, the non-recourse nature of this transaction doesn’t require the usual terms that come with a regular loan. Therefore, you should never have monthly payments due, nor should you be pressured for early paybacks. As a general rule, legal funding companies will charge you nothing until—and if—your case is settled. That means no application fee, no hidden fees, and no monthly payments.

4. How Long Does It Take to Receive My Lawsuit Cash Advance?

Obviously, most plaintiffs need a cash advance on a settlement because they are struggling financially. This means that they can’t afford to wait for a lender that is simply disorganized or has a bunch of waiting periods. Generally, most pre-settlement lenders get cash advances out 24-48 hours after approval. Keep in mind that this is after your attorney’s office turns in all of the necessary documentation, which could take extra time. Thus, we recommend going with a lender that promises to get your payment sent as quickly as possible.

Is Getting a Cash Advance on Your Lawsuit the Right Move for You?

Loans against lawsuits are for plaintiffs who are injured and can’t wait for their cases to settle.

If you are on stable financial footing, it is not recommended that you borrow money against your lawsuit. You should only consider getting loans against lawsuits if you truly cannot wait for your case to settle. Otherwise, waiting patiently for your case to settle is your best course of action.

Can I Get More Than One Cash Advance for a Pending Lawsuit?

Technically, yes, but it’s only recommend in very specific circumstances. Generally speaking, the more pre-settlement funding you request, the less you will receive for your settlement. This can make your potential payout way less than expected. Additionally, keep in mind that when you apply for additional funding, reputable lenders will have to review the facts of your case again. While this may not be a problem in long-term cases with extensive medical bills, it’s not entirely necessary for most cases. This is why it’s better to determine how much you need the first time you apply for a cash advance for a pending lawsuit.

Why Would a Pre-Settlement Loan Be Denied?

A cash advance on a lawsuit can be denied for various reasons. Here are a few of the common factors that might lead to a denial:

Weak case. If the lawsuit lacks merit or the chances of winning the case are low, the funding company may deny the loan.
Insufficient documentation. Lack of necessary documentation, such as medical records, police reports, or other evidence supporting the claim, can lead to a denial.
Unclear liability. If it’s not clear who is at fault or if there are disputes over liability, the funding company may consider the case too risky.
Low settlement amount. If the potential settlement amount is too low to cover the loan and interest, the application may be denied.
Prior liens. Existing liens or other financial obligations against the potential settlement can reduce the amount available to repay the loan, leading to a denial.

Understanding these factors can help applicants better prepare their cases and documentation when applying for an advance on a settlement or lawsuit.

Are Lawsuit Cash Advances Available in My State?

We provide cash advances against pending lawsuit settlements in 39 states. The states where we are unable to provide settlement advances are Arizona, Arkansas, Colorado, Illinois, Indiana, Maryland, Minnesota, Nevada, South Carolina, Tennessee, or West Virginia. Here are the most popular states for settlement loans:

Ready to Apply for a Pending Settlement Loan? Nova Legal Funding Is Here To Help.

Unlike other legal funding companies, we are open and transparent about our funding process. As a result, we’ve been able to help countless plaintiffs get loans against pending lawsuits. At Nova, we provide funding to all types of cases, including but not limited to:

If you’re in an ongoing lawsuit and the bills are piling up, call Nova Legal Funding at 800-760-0704—or apply online by filling out the contact form linked to at the top right-hand side of your screen.

“Nova Legal Funding went above and beyond to help me.”

“I have a lawsuit against Wal-Mart and unfortunately my case won’t be settled until some time next year. In the meantime I am unable to work due to the extent of my injuries. With no money coming in, I decided to apply for a pending lawsuit loan. Ron with Nova Legal Funding went above and beyond to help me. Even though I was denied twice, Ron didn’t give up. I can’t thank Ron enough for all of the time he spent to get an approval.”
– Lisa B. via Facebook

How to Get a Cash Advance on Your Pending Lawsuit Settlement