Understanding Funding

Pre-settlement funding vs a settlement advance

People mix these up constantly. They solve different problems at different stages, and using the wrong one costs you money.

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These two terms get used loosely, sometimes by funders who should know better. They are not the same thing, and the difference affects what you pay.

Pre-settlement funding: the case is still open

This is for when your case has not settled yet. Maybe you are still treating, maybe you are negotiating, maybe you are deep in litigation. The outcome is genuinely uncertain. The funder is taking real risk that the case could lose entirely, and the pricing reflects that risk. This is the product most people mean when they say legal funding. Our pre-settlement funding page covers it in full.

Settlement advance: the case is already won

This is different. Your case has settled. The number is agreed. You signed the release. The only thing left is the disbursement process, which can still take weeks while checks clear and liens get resolved. A settlement advance bridges that final wait. Because the case outcome is no longer uncertain, the funder is taking far less risk, so the cost is usually meaningfully lower.

Why people get this wrong

Some people who already settled go looking for "pre-settlement funding" out of habit and end up paying pre-settlement pricing for what should be a much cheaper settlement advance. The risk to the funder is not the same, so the price should not be either. If your case is resolved and you are just waiting on the money, say that clearly when you apply. It changes which product you should get.

Quick way to tell which you need

Ask yourself one question. Is the final settlement amount agreed and signed? If no, you are looking at pre-settlement funding, and the strength of your case matters, whether it is a rear-end, T-bone, or truck case. If yes, you want a settlement advance and the conversation is mostly about timing. Either way, the how it works page maps out the process.

Not sure which product fits your situation?

Tell us where your case stands and we will point you to the right one. Apply in a few minutes.