Lawsuit Funding Basics
What Is Pre-Settlement Funding?
Educational content — not legal or financial advice.
Pre-settlement funding is a cash advance made available to a plaintiff while their legal claim is still pending — before a settlement or judgment has been reached. It's designed for the period when expenses continue but case proceeds haven't arrived yet.
When Pre-Settlement Funding Applies
This type of funding applies any time after a claim has been filed or is being actively negotiated, but before it has resolved. It's distinct from post-settlement funding, which applies after a case has already settled but before funds have been disbursed.
What It's Typically Used For
Plaintiffs commonly use pre-settlement funds for everyday living expenses, medical costs not covered by insurance, or to avoid financial pressure that might otherwise push them to settle for less than their claim may be worth.
Frequently Asked Questions
What's the difference between pre-settlement and post-settlement funding?
Pre-settlement funding is available while a case is still pending. Post-settlement funding applies after a case has resolved but before proceeds have been paid out.
Related: Pre-Settlement Funding
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