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Best Pre-Settlement Funding Companies

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by ConsumerAffairs Research Team

Lawsuits are stressful and time-consuming, especially if you’re injured or out of work. If you’re expecting a lawsuit payout but need immediate funds to tide you over during court proceedings, you might be eligible to get money before your settlement through pre-settlement funding.

Compare Top Pre-Settlement Funding Companies

J.G. Wentworth Structured Settlements
Read 170 Reviews

This diversified financial services company provides many financial solutions, including mortgage lending and refinancing, annuities, structured settlements and pre-settlement funding.

Peachtree Financial Solutions
Read 136 Reviews

As a leading purchaser of structured settlement payment and pre-settlement funding, this company can provide cash advances to consumers with illiquid assets.

DRB Capital
Read 23 Reviews

One of the largest, most trusted settlement & annuity payment buyers in America. Fast cash, easy approval, no hidden fees, a “Most Cash Offer Guarantee”, and a dedicated representative. Free $100 Cash Gift Card with phone quote.

Oasis Legal Finance
Read 18 Reviews

In addition to purchasing future payments, this structured settlement company offers pre-settlement funding to provide cash during personal injury and liability lawsuits.

Fair Rate Funding
Read Expert Review

For those in need of a cash advance for a personal injury case, this pre-settlement financing firm offers quick and easy financial solutions with low rates and fees. Advances available starting at $500 with no set maximum.

High Rise Financial
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With a focus on a higher standard for courteousness and professionalism, this company provides clients with flexible terms for financial solutions while they wait for settlements.

LawCash
Read Expert Review

Founded by the American Legal Finance Association, this firm provides many services, including settlement funding for plaintiffs, surgery funding and bundled lawsuit advance refinancing. Minimum funding of $500 with no cap.

Mayfield Settlement Funding
Read Expert Review

Lawsuit loans and pre-settlement funding company offering cash advances from $500–$250,000 for injury settlement cases. The company boasts same-day processing, excellent customer service and simplicity.

Nova Legal Funding
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Unlike competitors that charge the same rates across the board, this pre-settlement company operates on a sliding scale — in other words, the stronger your case, the lower your rates.

Pravati Capital
Read Expert Review

Individuals and law firms can access non-recourse funding for pre- and post-settlement litigation funding with flexible terms. Personal injury litigation funding starts at $10,000 and goes up to $10,000,000.

Prime Case Funding
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This company provides lawsuit loans as well as pre- and post-settlement financial solutions specific to each client while maintaining competitive rates. Qualified borrowers can qualify for funding from $500 to $1,000,000.

Pre-settlement funding questions

Can I get money before my settlement?

If you’re a plaintiff currently involved in a lawsuit and need cash, you may be able to receive capital through pre-settlement funding. Many types of claims are eligible for pre-settlement funding, but personal injury, medical malpractice and premise liability, or product liability are most common since those types of claims usually result in missed work and high medical bills. Pre-settlement funding is typically used to cover living expenses, mortgage or car loan payments during legal proceedings. Often, this gives plaintiffs extra time to negotiate a better settlement deal.

Pre-settlement funding is sometimes called a lawsuit loan, pre-settlement loan, lawsuit cash advance, pre-settlement cash advance or lawsuit funding. Remember, no matter what it’s called, borrowing money against expected court proceeds is risky — lawsuit lenders are largely unregulated by the government and many customers have bad experiences.

What is pre-settlement funding?

Pre-settlement funding provides plaintiffs with cash advances in exchange for a portion of their expected future settlement proceeds. Even though it’s common to hear pre-settlement financing as a “lawsuit loan,” it’s not really a loan at all. Instead, a better definition of pre-settlement funding is a non-recourse cash advance. The critical difference is that a loan must be repaid no matter what, but repayment on a non-recourse cash advance only occurs when the plaintiff wins their case.  

How does a lawsuit loan work?

Sometimes, a plaintiff will need a cash advance during a lengthy litigation process, especially in personal injury cases. Pre-settlement funding companies buy a share of the plaintiff’s potential court proceeds in exchange for a cash advance. The plaintiff repays the lawsuit advance (plus fees) if they settle or win a judgment in their lawsuit. If the plaintiff loses their case, the lawsuit loan usually doesn’t have to be repaid.

Traditional banks or credit unions don’t offer lawsuit loans since they are so risky for the lender. To get a lawsuit loan: 

  1. A plaintiff’s attorney first describes their case to a pre-settlement funding company.
  2. The pre-settlement company then requires court records and medical documentation to assess the case.
  3. If approved, a pre-settlement funding company provides a cash advance in exchange for a portion of their expected future lawsuit proceeds.
  4. If the case is won or settled, the pre-settlement funding company gets the portion they purchased plus interest and fees. If the case is lost, there usually isn’t a debt obligation to repay.

Unlike traditional loans, lawsuit loans don’t require collateral. Pre-settlement funding companies don’t review potential clients’ credit profiles, but they do work closely with their clients’ attorneys to determine how likely their cases are to win.

Even though it’s common to hear pre-settlement funding as a “lawsuit loan,” it’s not really a loan at all. Loans must be repaid to a lender, but pre-settlement financing is only repaid if the plaintiff wins their case.

How much do lawsuit loans cost?

Interest rates are typically
30–60% PER YEAR
on lawsuit loans

Lawsuit loans can be costly. If you win your case, you have to pay back the amount you borrowed plus interest and fees. Interest rates on lawsuit loans are typically 30–60% per year, which is higher than most installment loans and comparable to payday loan interest rates. Lawsuit loans accumulate interest over time, so the longer your case goes on, the more you end up owing.

For example, if you get a $15,000 lawsuit cash advance, you could owe $8,250 in interest after one year, in addition to the principal amount. If your case takes two years to settle, you could have to pay back the $15,000 lawsuit loan plus $16,500 ($31,500 total).

Lawsuit loan lenders often charge an application fee to evaluate your case, but some will give you a free consultation. Generally, pre-settlement funding companies charge fees for funding delivery and underwriting. Document fees, archiving fees, servicing fees and additional funding review fees are also standard and can add up quickly.

How frequently a pre-settlement company compounds interest will also affect how much a lawsuit loan costs. Some lawsuit loan lenders compound interest daily or weekly, while others compound monthly or yearly. Naturally, it will be in your best interest to select a pre-settlement company that compounds interest less frequently.

Are there restrictions on how you spend a lawsuit loan?

No, there are no restrictions on how you spend a lawsuit loan, though most people use them to cover living expenses, medical bills or legal fees.

What types of claims are eligible for pre-settlement advances?

The following claims are eligible for pre-settlement advances:

  • Personal injury
  • Auto accidents
  • Public transit accidents
  • Premise liability
  • Product liability
  • Workers’ compensation
  • Medical malpractice
  • Wrongful death

Do I need an attorney to be eligible for a lawsuit loan?

Yes, to be eligible for a lawsuit loan you must find a lawyer to represent your case.

What should I look for in a pre-settlement funding company?

As you compare pre-settlement funding companies, remember to pay close attention to interest rates, fees and how often interest is compounded before you sign any paperwork. Also, be sure to confirm that you won’t be obligated to repay the cash advance if you lose your case.

Pros and cons of lawsuit loans

Advantages of pre-settlement funding

Lawsuits can take months or years to come to a resolution, and many plaintiffs run through their savings before they can cash in their settlement or court award. A lawsuit loan from a pre-settlement funding company can be helpful to some plaintiffs during long litigation processes. For some, a lawsuit loan can stretch the time needed to reach a fair settlement.

Also, if you get a lawsuit loan from a pre-settlement company and your case doesn’t turn out as you hoped, you aren’t obligated to repay the lawsuit advance. Still, most people will save money in the long run by avoiding lawsuit loans. If possible, consider other resources like disability payments, insurance proceeds or even a personal loan from your bank or credit union.

Disadvantages of pre-settlement funding

Pre-settlement funding companies can provide much-needed funds during a financially stressful time, but lawsuit loans also come with hefty interest rates and fees.

Since lawsuit loans aren’t regulated like other types of loans, there’s no cap on the amount of interest that lenders can charge and it can be hard to find a good pre-settlement funding company. In addition to high interest rates, lawsuit loans also come with several fees that can add up quickly, like document fees, archiving fees, servicing fees and more.

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Pre-settlement funding reviews

J.G. Wentworth Structured Settlements

J.G. Wentworth focuses on the fastest, easiest way to get their clients structured settlements, pre-settlement funding and other financial solutions they need. They work with individual claimants as well as lawyers looking to support their clients, bringing them together with companies that can provide the cash they need for breathing room during the prolonged litigation phase.

  • Types of claims covered: Pre-settlement funding is offered for personal injury claims. Several other financial services, such as annuity purchasing, structured settlements and home mortgages, are also available.
  • Cash advance amount: J.G. Wentworth’s pre-settlement funding is limited to 15%-20% of the total estimated value of your settlement.
  • How it works/timeline: If approved, you or your attorney will receive the pre-settlement funding as soon as 24 hours.
  • Best for: They’re best if you want a no-nonsense company that has a speedy record.
Read 170 Reviews
Peachtree Financial Solutions

As one of the largest firms in the litigation funding purchasing industry, Peachtree Financial Solutionscan help clients achieve diverse financial goals through structured settlements, annuities or lottery payouts. Their company follows a strict set of rules: treating people right, listening first, speaking clearly, providing options, working with you and inspiring confidence. These rules and the fact that you have a singular representative handling your case means they pay special focus on customer care.

  • Types of claims covered: Peachtree Financial Solutions covers several claims and are not limited to pre-settlement funding — they also cover structured settlements, annuities and lottery winnings.
  • Cash advance amount: You can receive as little as $300 and as much as $750,000.
  • Timeline: If approved, you can receive your funding as little as 48 hours.
  • Best for: Peachtree Financial Solutions is best if you are looking for a hands-on, attentive staff to walk you through the process.
Read 136 Reviews
Fair Rate Funding

Fair Rate Funding offers pre-settlement services for personal injury cases and provides plaintiffs with an experienced lawsuit funding specialist for individualized services. They understand that the litigation process is long and this may make life hard, as bills will pile up if you are unable to work. However, they offer incredibly competitive rates when you need interim cash so your life will be made whole during that lengthy process.

  • Types of claims covered: Fair Rate Funding specializes in a wide range of personal injury cases, including cases on appeal, FELA cases and NFL lawsuit funding.
  • Cash advance amount: The minimum is $500, and there is no set maximum advance; however, the maximum amount will depend on your case.
  • Timeline: The pre-settlement funding process usually takes 24–48 hours, with funding forwarded via overnight delivery.
  • Best for: Fair Rate Funding has a wider-range of knowledge for many types of claims, so they may be the best choice if pre-settlement funding companies have previously denied your claim.
Pravati Capital

Pravati Capital is a litigation finance company that offers funding for individual clients as well as law firms. Law firms can access the capital needed to grow or maintain clientele. Along with financing for claimants, lawyers and firms, Pravati offers a rare venture for investors with a “non-correlated investment” that is a viable alternative to a fluctuating market with a potentially dynamic return.

  • Types of claims covered: Pravati capital provides competition and antitrust litigation financing, class action lawsuit financing, DIP financing, insolvency litigation funding, insolvency litigation funding, insolvency litigation funding, securities and shareholder lawsuit financing and patent litigation funding.
  • Cash advance amount: This will depend on several factors. For example, non-recourse financing starts at $100,000 and caps at $20,000,000, but litigation funding can all depend on a firm’s collateral.
  • Timeline: Contact Pravati Capital directly for an accurate payout timeline estimate.
  • Best for: Pravati is best for large-scale operations such as lawyers or law firms that need to cover their client’s expenses.
Mayfield Settlement Funding

One of the fastest pre-settlement funding companies, Mayfield Settlement Funding can provide funds on the same day as approval because they have streamlined the lawsuit loan process while providing both speedy and helpful customer service. They offer pre-settlement funding that is simple, straightforward and doesn’t require a credit check. There is no middle-men involved and no application fee or monthly payments.

  • Types of claims covered: Mayfield Settlement Funding includes pre-settlement claims, litigation funding, legal funding and several other lawsuit loans found on their website.
  • Cash advance amount: Depending on your case, approved pre-settlement funds are anywhere from $500–$250,000.
  • Timeline: You can receive funds as soon as the same day.
  • Best for: Mayfield Settlement Funding is best for plaintiffs who need access to cash quickly.
LawCash

LawCashprovides pre-settlement funding, and offers litigation financing as a rolling contract so you can receive your payout in smaller sums over a more extended period of time. This means that your overall rates may be substantially lowered, driving home their focus on giving their clients the lowest rates possible. Since they are the founding members of the American Legal Finance Association (ALFA), LawCash also prides itself on their transparency and ethics.

  • Types of claims covered: LawCash handles pre-settlement funding, litigation funding (mostly personal injury), surgery financing and settled case funding.
  • Cash advance amount: The starting amount is $500, and there is no maximum amount, but funding amounts depend on your specific case.
  • Timeline: You could receive payment as soon as the same day your application is approved.
  • Best for: Those interested in rolling contract financing giving you longer-term pre-settlement funding that could mean a smaller repayment. Not only will this present you with a regular income, but may make your repayment less than one lump sum.
High Rise Financial

High Rise Financial provides simplicity with the pre-settlement funding method by focusing on two things: An easy process and funding within 24 hours of approval. In doing this, they take away the pressure large insurance companies have hoping you to settle during the prolonged litigation process. According to clients, their services are professional, courteous and have positive results.

  • Types of claims covered: High Rise Financial covers auto accidents, personal injury and medical device malfunctions.
  • Cash advance amount: If approved, you can be eligible to receive $500-$100,000.
  • Timeline: You could receive your funding in as fast as 24 hours after applying.
  • Best for: A speedy experience with dependable customer service.
Prime Case Funding

Prime Case Funding promotes the lowest rates in the industry, zero risks to their clients, no monthly payments and funding within 24 hours. There is no out of pocket expenses on your part and they have absolutely no say about your case. In addition to pre-settlement funding, Prime Case Funding can also provide you with post-settlement lawsuit cash advances if you have settled your case.

  • Types of claims covered: Prime Case Funding covers personal injury cases, surgery funding, medical malpractice and civil cases. Prime Case Funding can also provide post-settlement funding.
  • Cash advance amount: The minimum amount is $500, and the maximum is $1,000,000, but you can raise that cap if your case is strong enough.
  • Timeline: The process itself may take under a day but is typically finished in 24 hours.
  • Best for: Prime Case Funding is best for those who want overall simplicity during their pre-settlement funding process.
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ConsumerAffairs Research Team

The ConsumerAffairs Research Team believes everyone deserves to make smart decisions. We aim to provide readers with the most up-to-date information available about today's consumer products and services.