If you’re pursuing a personal injury case, you’ve probably heard of pre-settlement funding–a financial option that helps plaintiffs cover expenses while waiting for their case to resolve. Unfortunately, there are many myths and misunderstandings about how this type of funding works.
These misconceptions can cause people to avoid a resource that could ease financial stress during a difficult time. Let’s set the record straight by debunking the most common myths about pre-settlement funding.
Myth: Pre-Settlement Funding Is Just Like a Loan
Unlike traditional loans, pre-settlement funding is non-recourse. This means repayment is only required if you win or settle your case. There are no monthly payments, no credit checks, and no employment requirements.
If your case is unsuccessful, you typically owe nothing back. That makes it very different from a personal loan or credit card.
Myth: You Need Good Credit to Qualify
Debunked: Your credit score has nothing to do with eligibility for pre-settlement funding. Approval is based entirely on the strength of your legal case, not your financial history. The funding company works with your attorney to evaluate liability, damages, and the potential value of your claim before making a decision.
Myth: You Can Only Use the Money for Legal Expenses
Debunked: Once you receive funding, you can use it for any expenses you choose. Most plaintiffs use it to cover medical bills, rent, groceries, childcare, or utilities. Pre-settlement funding is designed to give you financial breathing room, not restrict how you manage your money.
Myth: It Takes a Long Time to Get Approved
Debunked: Many funding companies can provide approval and funding within 24 to 48 hours after reviewing your case. The process is simple—your attorney shares the necessary documents, the company evaluates your claim, and funds are released quickly if you qualify.
Myth: If You Lose, You Still Owe the Money
Debunked: This is one of the biggest misconceptions. Because pre-settlement funding is non-recourse, you don’t repay anything if your case is unsuccessful. The funding company assumes the risk, not you.
Myth: Accepting Funding Hurts Your Case
Debunked: Getting pre-settlement funding does not negatively affect your legal claim. In fact, it can help by giving you the financial stability to allow your attorney more time to negotiate for a fair settlement. Without financial pressure, plaintiffs are less likely to accept lowball offers just to cover immediate bills.
Busting Legal Funding Myths
Pre-settlement funding is a valuable tool for plaintiffs who need financial support while their case moves through the legal system. It isn’t a traditional loan, doesn’t depend on credit scores, and carries no repayment obligation if you lose.
By clearing up these common myths, it’s easier to see pre-settlement funding for what it really is: a way to relieve financial stress and give you the confidence to pursue justice without rushing into a settlement.
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.
