Pre-settlement Loan Options for Individuals in the Midst of a Legal Battle



Are you in the midst of a legal battle and in need of financial assistance? Pre-settlement loans may just be the answer to your problems. Pre-settlement loans are cash advances that are offered to individuals who are in the midst of a legal battle. Pre-settlement loan companies offer these cash advances to individuals while they await the outcome of their lawsuit or settlement.

When someone is involved in a personal injury lawsuit or any other legal case, they often face financial challenges due to the ongoing expenses that come with legal proceedings. Pre-settlement loan companies provide funding to plaintiffs to help them cover these expenses. The amount of the loan is typically based on the expected settlement amount of the lawsuit. In most cases, pre-settlement loans are provided by private lending companies rather than traditional financial institutions.

How do pre-settlement loans work?

Pre-settlement loan companies evaluate the details of the lawsuit or legal claim to determine the potential settlement amount. Once the potential settlement amount has been established, the lending company will offer a cash advance to the individual based on the estimated potential settlement amount.


These loans are often called “non-recourse loans,” which means that the plaintiff is not required to repay the loan if they lose the case. In most cases, the individual is not required to make any payments on the loan until the lawsuit has been settled.


Once the lawsuit has been settled, the pre-settlement loan company will receive a portion of the settlement amount as repayment for the loan. The amount of the repayment will typically include the original loan amount plus interest and fees.

Cost of Pre-settlement Loans

The amount of the pre-settlement loan will vary depending on the individual case, but pre-settlement loan companies typically offer loans ranging from $500 to $100,000 or more. The interest rates on pre-settlement loans are usually higher than traditional loans because of the risk involved. Since the loan is non-recourse, the lender is taking a significant risk by providing funding to the plaintiff. If the plaintiff loses the case, the lender will not be able to recoup their investment.


Benefits of pre-settlement loans

  1. They can provide immediate financial assistance to individuals who are struggling to make ends meet during the legal process which could potentially linger for a long period. This can be especially important for individuals who are unable to work due to injuries or other factors related to the legal battle.
  2. They do not require any collateral. Unlike traditional loans, pre-settlement loans are based solely on the potential settlement amount of the lawsuit. This can make them an attractive option for individuals who do not have assets to use as collateral.
  3. No repayment if the case is lost – Since pre-settlement loans are non-recourse, plaintiffs are not required to repay the loan if they lose their case. This can provide peace of mind to plaintiffs who are taking a financial risk by pursuing legal action.
  4. Pre-settlement loan companies do not typically require a credit check, which means that plaintiffs with poor credit can still receive funding.
  5. Pre-settlement loans can be approved quickly, often within 24 hours of the application being submitted.

Risks of pre-settlement loans

  • They can be expensive: Pre-settlement loan companies typically charge high interest rates and fees for their services. This can result in the borrower owing significantly more than the original loan amount once the lawsuit has been settled.
  • Pre-settlement loans are not regulated by traditional lending laws. This means that pre-settlement loan companies are not subject to the same regulations as traditional lending institutions. This can make it difficult for borrowers to fully understand the terms of the loan and the potential risks associated with it.
  • Pre-settlement loans can often be difficult to obtain. Pre-settlement loan companies typically require a significant amount of information about the lawsuit or legal claim before offering a loan. This can make it difficult for individuals with weaker legal claims to obtain a pre-settlement loan.
Why do plaintiffs seek pre-settlement loans?

There are several reasons why plaintiffs may seek pre-settlement loans. The primary reason is that they need financial assistance while their case is ongoing. Legal cases can take months or even years to settle, and plaintiffs often face significant expenses during this time. These expenses can include medical bills, rent or mortgage payments, car payments, and other living expenses. Pre-settlement loans can help plaintiffs cover these expenses while they wait for their case to settle.

Another reason why plaintiffs may seek pre-settlement loans is to help them negotiate a settlement. If a plaintiff is in financial distress, they may be more likely to settle their case for a lower amount than they would if they had the financial resources to continue their case. By receiving a pre-settlement loan, plaintiffs can alleviate some of the financial pressure they are under, which may give them more leverage during settlement negotiations.

Top pre-settlement loan companies available
  1. Oasis Financial
  2. Peachtree Financial Solutions
  3. JG Wentworth
  4. Nova Legal Funding
  5. LawCash
  6. The Legal Funding Group
  7. Plaintiff Relief
  8. Ally Lawsuit Loans
  9. Mayfield Settlement Funding
  10. Fast Funds

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like