Car Accident Funding FAQ
Get answers to the most common questions about car accident legal funding
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Understanding Car Accident Funding
Everything you need to know about getting financial support for your case
What is car accident funding?
Car accident funding provides you with immediate cash while you wait for your personal injury case to settle. It’s not a traditional loan. Instead, it’s a cash advance against your expected settlement that you only repay if you win your case.
If you’ve been injured in a car accident and are struggling to pay medical bills, rent, or other expenses while your case is pending, legal funding bridges the financial gap. You can use the money for any purpose including medical bills, living expenses, car repairs, or family support.
How does car accident funding work?
The process is straightforward and typically takes 24-72 hours from application to receiving funds:
- Apply online or by phone – Takes just 10 minutes with basic accident and attorney information
- We contact your attorney – Our team reviews your case details within 2-4 hours
- Case evaluation – We analyze police reports, medical records, and insurance coverage
- Receive your offer – Get a funding amount and fee quote within 24-48 hours
- Get your money – Funds transfer within 24 hours via check, wire, or direct deposit
What are the benefits of car accident funding?
✓ No monthly payments
You don’t make any payments until your case settles
✓ Non-recourse funding
If you lose, you owe nothing back
✓ Fast approval
Get cash in as little as 24 hours
✓ No credit check
Bad credit or bankruptcy won’t disqualify you
✓ Strengthen your case
Avoid settling too early for less than you deserve
✓ Use funds freely
Spend on anything you need without restrictions
Qualification Requirements
Find out if you qualify for car accident funding
Who qualifies for car accident funding?
Qualification depends on your case strength, not your personal finances. Here are the key requirements:
Case Requirements
- Represented by an attorney
- Clear liability in your favor
- Significant documented injuries
- Active personal injury lawsuit
- Insurance coverage available
Factors That Don’t Matter
- Your credit score
- Employment status
- Bankruptcy history
- Income level
- Other outstanding debts
Can I get funding if I already have an attorney?
Yes, having an attorney is actually required for approval. We don’t work with unrepresented accident victims. Your lawyer must agree to cooperate with our funding process and handle repayment from settlement proceeds.
Most attorneys are familiar with lawsuit funding and support clients who need financial help. The funding can actually help your attorney by reducing pressure to settle quickly for inadequate amounts.
What documents do I need to apply?
The application process requires minimal documentation from you. Most information comes directly from your attorney during underwriting. You’ll need to provide:
- Basic accident details (date, location, type of collision)
- Information about your injuries
- Your attorney’s contact information
Your attorney will provide police reports, medical records, insurance information, and case assessment to our team. This cooperation is essential for approval and determines your advance amount.
Costs, Fees & Amounts
Transparent pricing with no hidden fees
How much money can I receive?
Most advances range from $1,000 to $25,000 for typical car accident cases. Severe injury cases with clear liability can receive $50,000 to $100,000 or more.
Your advance amount depends on several factors:
- Severity of your injuries and ongoing medical treatment
- Total medical bills and expected future costs
- Strength of liability evidence against the other driver
- Available insurance coverage limits
- Expected settlement value of your case
Multiple draws are possible as your case develops. You can request additional funding later when medical treatment continues or new case developments occur.
What are the fees for car accident funding?
Our rates are competitive and fully disclosed upfront. Here’s what you need to know:
Interest Rates
Typically 2-4% monthly on outstanding balance (approximately 24-48% annually)
No Hidden Fees
No application fees, no monthly payments, no upfront costs of any kind
Simple Example
$5,000 advance for 12 months = approximately $1,800 in fees (total repayment: $6,800)
Can I pay off the funding early to save money?
Yes, most funding agreements allow early repayment without penalties. Paying off the advance early significantly reduces your total interest costs.
Early repayment makes sense if you receive a quick settlement offer or find alternative funding sources. Calculate the payoff amount and compare it to your settlement offer to determine if acceptance makes financial sense. Some companies even offer small discounts for early payoff.
The Funding Process
Understanding timelines, repayment, and what to expect
How long does the approval process take?
Standard approval takes 24-48 hours after receiving your application. Once approved, you can receive funds as soon as the next business day.
24-48hrs
Standard Review Time
Same Day
Emergency Situations
3-5 Days
Complex Cases
Your attorney’s cooperation speeds up the process significantly. Lawyers familiar with funding requirements can provide information quickly, while attorneys new to the process might need more time.
What happens if I lose my case?
You owe nothing back if your case loses at trial or gets dismissed.
This is called “non-recourse” funding and it’s the main advantage over traditional loans. The funding company takes all the risk on your case outcome. If you don’t win, they lose their entire investment plus fees. You keep all the money you received with no obligation to repay.
Banks and traditional lenders can still collect from you even if your lawsuit fails. Funding companies can only recover money from your case proceeds. Less than 5% of funded cases result in complete losses, as most cases settle for some amount.
How does repayment work when my case settles?
Your attorney handles all repayment directly from your settlement check. You never write a personal check or make payments to the funding company.
Here’s the simple process:
- The funding company provides a payoff statement showing the total amount due
- Your lawyer deducts this amount from your settlement check before disbursing funds
- You receive your remaining settlement funds minus the payoff amount
The repayment happens automatically as part of your case resolution. Get a payoff quote before settling to understand exactly how much you’ll owe, as payoff amounts change daily due to compound interest calculations.
Will funding affect my attorney’s fees or case strategy?
No, funding doesn’t change your attorney’s fee percentage or case strategy. Most lawyers charge 33-40% of your settlement whether you have funding or not. The funding repayment comes from your portion of the settlement, not your attorney’s fees.
In fact, funding actually improves your case by removing financial pressure to settle quickly. Your attorney can take the necessary time to build a stronger case and negotiate better settlement terms. Many attorneys report that clients with funding are less stressed and more cooperative during the legal process because financial stability helps you focus on recovery instead of worrying about bills.
Credit, Risk & Impact
Important information about how funding affects you
Will this affect my credit score?
No. Car accident funding will not affect your credit in any way.
We don’t run credit checks during the application process, and legal funding doesn’t appear on your credit report. Whether you repay the funding or your case loses, there’s no impact on your credit score. This makes funding ideal for people with poor credit, bankruptcy history, or no credit at all.
Do I need to notify my attorney about getting funding?
Yes, your attorney must be aware of and approve the funding. We work directly with your attorney to review your case details, so they play an essential role in the process.
Your lawyer will need to provide case information, medical records, and other documentation during our review. They’ll also handle the repayment directly from your settlement proceeds when your case resolves. Most attorneys are supportive of clients getting funding because it helps remove financial pressure and allows for better case outcomes.
Comparing Your Options
How car accident funding compares to other financial options
| Option | Credit Check | Monthly Payments | Risk if You Lose |
|---|---|---|---|
| Car Accident Funding | ✓ No | ✓ No | ✓ None |
| Personal Loan | ✗ Yes | ✗ Yes | ✗ Full Debt |
| Credit Card | ✗ Yes | ✗ Yes | ✗ Full Debt |
| Family Loan | ~ Maybe | ~ Maybe | ✗ Relationship Strain |
Lawsuit funding works best when you can’t qualify for traditional financing or want to avoid personal liability
Still Have Questions?
Get personalized answers from our funding specialists. Apply now or contact us to discuss your specific situation.