When you’re involved in a lawsuit, financial pressure often builds long before the case is resolved. Medical bills, rent, car payments, and everyday living expenses don’t pause just because your case is still pending. That’s where legal funding can help. However, not all legal funding works the same way.
Two of the most common options are pre-settlement funding and post-settlement funding. Understanding the difference between the two can help you decide which option makes the most sense for your situation. Let’s take a closer look.
What Is Pre-Settlement Funding?
Pre-settlement funding is financial assistance provided before your case is resolved. It’s typically available to plaintiffs who have an active lawsuit and are represented by an attorney. This type of funding is most commonly used in personal injury cases, but it can apply to other civil matters as well.
Pre-settlement funding is non-recourse, meaning repayment is only required if you win or settle your case. If your case is unsuccessful, you generally owe nothing back. Because the outcome of the case is still uncertain, approval is based on the strength of your claim, liability, and expected settlement value–not your credit score or employment status.
People often use pre-settlement funding to:
- Cover medical bills and prescriptions
- Pay rent, utilities, or mortgage payments
- Replace lost income during recovery
- Avoid pressure to accept a low settlement
What Is Post-Settlement Funding?
Post-settlement funding (sometimes called post-verdict or pre-distribution funding) is provided after your case has settled or reached a verdict, but before the funds are actually disbursed to you. Even after a case ends, delays can happen due to liens, paperwork, court processing, or insurance company payment timelines.
Because the case outcome is already determined, post-settlement funding generally carries less risk for the funding company. As a result, it may come with lower fees compared to pre-settlement funding and can often be approved more quickly.
Post-settlement funding is commonly used to:
- Bridge the gap while waiting for settlement checks
- Pay outstanding bills or liens
- Handle urgent financial needs after a verdict
- Avoid taking on traditional high-interest debt
Key Differences at a Glance
The biggest difference between pre-settlement and post-settlement funding is timing and risk. Pre-settlement funding happens while your case is still ongoing and uncertain, while post-settlement funding occurs once the case result is known but funds haven’t been released yet.
Pre-settlement funding may take longer to evaluate because it requires a review of case details, medical records, and attorney cooperation. Post-settlement funding is typically faster, since the settlement amount has already been established.
Which Option Is Right for You?
If your case is still active and financial stress is affecting your ability to wait for a fair outcome, pre-settlement funding may help relieve immediate pressure. If your case has already settled but you’re stuck waiting for payment, post-settlement funding can provide short-term relief until your funds arrive.
Understanding the difference allows you to choose the option that fits your timeline, needs, and case status without turning to risky loans or credit cards while your legal matter is being resolved.
Legal Funding From Cash Now Funding Group
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.
