1. Finance
  2. Best Pre-Settlement Funding

Best Pre-Settlement Funding Companies

Author picture
Author picture
Written by

Lawsuits are stressful and time-consuming, especially if you're injured or out of work. Use our guide to research the best pre-settlement funding company for you. We explain what to consider for if you're expecting a lawsuit payout but need immediate funds to tide you over during court proceedings.

Why trust ConsumerAffairs?
  • Our recommendations are based on what reviewers say.
  • 4,307,388 reviews on ConsumerAffairs are verified.
  • We require contact information to ensure our reviewers are real.
  • We use intelligent software that helps us maintain the integrity of reviews.
  • Our moderators read all reviews to verify quality and helpfulness.

Compare Top Pre-Settlement Funding Companies

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.

Pre-Settlement Funding FAQ

How long does it take to get a settlement loan?

After you apply, it usually takes four to six weeks to get your settlement loan. However, factors that affect this timeline include your type of settlement (car accident, dog bite, workplace accident, etc.) and the documentation available.

Do lawyers give advances on settlements?

Because of professional ethics, an attorney cannot lend money to their clients. By lending money to a client, an attorney has introduced a conflict of interest and could lose their license to practice law. However, attorneys can advance funds to pay for legal fees, like court fees and payments for expert witnesses.

Can your lawyer give you a loan?

No, a lawyer cannot loan you money. When an attorney loans you money, it creates a conflict of interest and can lead to their disbarment. An attorney may be able to advance money for specific court costs, like court fees or paying an expert witness.

Can you borrow against a lawsuit?

Yes, you can. A lawsuit loan (also known as lawsuit cash advance, litigation financing or settlement funding) is a type of loan where you borrow against a possible settlement. Once you choose a lender:

  1. You apply for your lawsuit loan.
  2. The company evaluates your case and estimates your payout.
  3. Once the numbers are confirmed, you agree to borrow a sum of money from the lender (the principal).
  4. When you receive your settlement from your lawsuit, the lender takes the amount you owe, plus interest, from the amount.

Make sure to speak with the lender's representative so you understand what you owe and the interest that is added to the principal, especially if you expect your case to last several years.

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, premise liability and product liability cases 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 payments 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.

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. 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.

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?

Any pending court case in which you are seeking to recover money is eligible for a pre-settlement advance. The most common types include:

  • 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.

Not sure how to choose?

Get buying tips about Pre-Settlement Funding delivered to your inbox.

    By entering your email, you agree to sign up for consumer news, tips and giveaways from ConsumerAffairs. Unsubscribe at any time.

    Thanks for subscribing.

    You have successfully subscribed to our newsletter! Enjoy reading our tips and recommendations.

    Pre-settlement funding reviews

    JG 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 454 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 392 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.

    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.

    Want your company to be on this guide?

    Yes, continue