Pre-settlement funding offers a financial lifeline during challenging times, providing cash advances against your expected settlement.
This funding isn’t a loan in the traditional sense. Instead, it’s a cash advance that you only repay if you win your case. If you lose, you owe nothing back. For many people facing lengthy legal proceedings, this type of funding can make the difference between financial stability and hardship.
Getting pre-settlement funding involves several straightforward steps.
Step 1: Check If You Qualify
Not every legal case qualifies for pre-settlement funding. Most funding companies focus on personal injury cases, including car accidents, slip and fall incidents, medical malpractice, and workplace injuries. Some companies also provide funding for employment discrimination cases or wrongful death claims.
Your case typically needs to have strong merit and a reasonable expectation of settlement or verdict. The funding company will want to see evidence that you have a good chance of winning and that the potential settlement amount justifies the advance.
Step 2: Collect Your Paperwork
The application process requires several documents to evaluate your case properly. Your attorney will help gather most of these materials, as they already have much of what’s needed in your case file.
Common documents include:
- Police reports
- Medical records and bills
- Insurance correspondence
- Employment records
- Any expert witness reports
Your attorney’s case evaluation and settlement estimate also play a crucial role in the approval process.
Step 3: Research Funding Companies
The pre-settlement funding industry includes many companies, but they’re not all created equal. Some charge reasonable fees, while others impose excessive rates that can eat into your eventual settlement.
Look for companies with transparent fee structures and clear terms. Read online reviews from previous clients, and ask your attorney if they have experience working with particular companies. Some attorneys maintain preferred lists of reputable funding companies they trust.
Pay attention to how quickly each company processes applications.
Step 4: Submit Your Application
Once you’ve chosen a funding company, the application process begins. Most companies start with a phone consultation where they gather basic information about your case and financial needs.
Your attorney will need to complete portions of the application and provide case documentation. Many funding companies have streamlined this process, working directly with law firms that regularly use their services.
During this step, be honest about your financial situation and funding needs. Companies like USClaims that offer pre settlement funding in Arizona and other states want to understand exactly how much money you need and why.
Step 5: Review Your Agreement Carefully
If approved, you’ll receive a funding agreement outlining all terms and conditions. This document is crucial, so read every word carefully. Don’t rush through this step, even if you need money urgently.
Key elements to examine include the total amount you’ll receive, the fees you’ll pay if you win your case, and what happens if your case takes longer than expected to resolve. Some companies charge compound interest, while others use flat fee structures.
Ask questions about anything you don’t understand. Your attorney can also review the agreement and explain how it might affect your case.
