If you are involved in a lawsuit and struggling with expenses while waiting for your case to resolve, pre-settlement funding can provide access to money before a settlement or judgment is reached. One of the most common questions plaintiffs have is how much funding they may be able to receive.
There is no universal amount. Pre-settlement funding is generally determined by the estimated value and strength of your case, rather than your income or credit history. Understanding how funding companies calculate an advance can give you a better idea of what to expect.
Pre-settlement funding companies typically provide only a portion of the estimated value of a claim. A common range is approximately 10% to 20% of the anticipated settlement or judgment, although individual providers may use different underwriting guidelines.
For example, if a case is estimated to result in a $100,000 recovery, a plaintiff might qualify for somewhere around $10,000 to $20,000 in funding. This is only an illustration. The actual amount offered depends on the circumstances surrounding the case.
Limiting the advance to a fraction of the expected recovery helps leave room for attorney fees, medical liens, legal expenses, funding costs, and the plaintiff’s remaining share of the settlement.
Several factors can affect how much pre-settlement funding you qualify to receive. One of the most important is the estimated value of your case. Generally, a case with a larger potential recovery can support a larger advance.
The strength of the claim also matters. Funding companies may evaluate available evidence, the extent of damages, insurance coverage, liability, and other factors that could affect the likelihood and amount of a recovery. The stage of the case can also influence an offer. As a lawsuit progresses and additional information becomes available, it may become easier to estimate its potential value.
Any previous funding can also be considered. If you have already received an advance against the same case, that amount may reduce how much additional funding is available.
Unlike a traditional loan, pre-settlement funding is generally based primarily on the legal claim rather than the applicant’s personal creditworthiness. Funding providers commonly evaluate the expected recovery from the lawsuit instead of relying on factors such as a credit score.
This is because pre-settlement funding is typically non-recourse. If the plaintiff does not receive a financial recovery from the case, the advance generally does not have to be repaid.
Receiving an initial advance does not necessarily mean you cannot request more money later. Some plaintiffs may qualify for additional pre-settlement funding as their case progresses. The funding company will typically reevaluate the case, including its current estimated value and any funding already provided, before approving another advance.
However, receiving more funding also means that more of the eventual settlement may be used to repay advances and associated costs.
The maximum amount you qualify for is not necessarily the amount you should take. Pre-settlement funding can help cover expenses such as rent, utilities, groceries, transportation, and other necessities while a lawsuit is pending, but funding costs reduce the amount ultimately remaining from a successful settlement.
Before accepting an advance, review the funding agreement carefully and discuss how it could affect your eventual recovery with your attorney. Borrowing only what is necessary can help address immediate financial needs while preserving more of your potential settlement for the future.
Are you or a family member in need of financial assistance due to a lengthy legal battle? Are you preparing for a long-term legal battle to get the compensation you deserve? Cash Now Funding Group can be the financial lifeline you need while your case settles. Applying is free and confidential & no credit check is required.
Contact us today to quickly get the funding you need.