When plaintiffs apply for legal funding, they may wonder what factors determine their eligibility. Unlike traditional loans, pre-settlement advances are based on the strength of the case rather than credit history or employment status.
Legal funding companies carefully evaluate various aspects of a lawsuit to assess the likelihood of a successful settlement and repayment. If you’re considering applying for legal funding, here’s what most companies look for when reviewing a case.
Type of Case
Legal funding is typically available for personal injury lawsuits, workers’ compensation claims, medical malpractice cases, employment disputes, and other civil claims with monetary damages. The case must have a clear path to settlement or trial, as speculative or weak claims are less likely to qualify.
Some of the most commonly funded cases include:
- Car accidents and personal injury claims
- Slip and fall lawsuits
- Medical malpractice claims
- Product liability cases
- Wrongful death claims
- Employment disputes (wrongful termination, workplace discrimination, etc.)
Strength of Liability
Legal funding companies assess whether the defendant is clearly at fault. Cases with strong evidence—such as police reports, medical records, eyewitness accounts, or expert testimony—are more likely to receive funding. If liability is disputed or unclear, it may reduce the chances of approval.
Severity of Injuries and Damages
The extent of injuries or financial damages plays a significant role in determining whether a case qualifies for funding. Plaintiffs with severe injuries that require extensive medical treatment, rehabilitation, or long-term care are more likely to receive funding, as these cases tend to result in higher settlements.
Examples of damages legal funding companies consider include:
- Medical bills and future medical expenses
- Lost wages and reduced earning capacity
- Pain and suffering
- Permanent disability or disfigurement
Estimated Settlement Value
Since legal funding companies get repaid from the final settlement, they evaluate the potential value of a case. If a case has a high settlement potential, plaintiffs are more likely to qualify for a larger advance. Conversely, cases with low expected payouts may receive limited or no funding.
Attorney Representation
Plaintiffs must have an attorney representing them on a contingency basis, meaning the lawyer only gets paid if the case is won. Legal funding companies work directly with attorneys to gather case details and structure repayment. A strong legal team with experience handling similar cases can improve funding approval chances.
Timeline to Settlement
Legal funding companies consider how long a case is expected to take before reaching a resolution. Cases with a clear settlement timeline or nearing resolution are more attractive for funding. Lawsuits that may take years to resolve can be riskier for lenders.
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.
