Unlocking Pre-Settlement Funding: Key Factors That Determine Eligibility

Pre-settlement funding provides plaintiffs with financial support during the litigation process, enabling them to meet their expenses and fight for a fair settlement. However, not all plaintiffs and cases are eligible for pre-settlement funding. This article will explore the factors that determine pre-settlement funding eligibility, as well as tips for improving your chances of securing the funds you need.

What is Pre-Settlement Funding?

Pre-settlement funding, also known as lawsuit funding or legal funding, is a non-recourse financial arrangement that provides plaintiffs with immediate cash to cover their living expenses, medical bills, and other financial obligations during the pendency of their lawsuit. Unlike traditional loans, pre-settlement funding does not require credit checks or collateral. Instead, the funding amount is based on the merits of the plaintiff’s case and the estimated settlement value.

Factors That Determine Pre-Settlement Funding Eligibility

Several factors determine whether a plaintiff is eligible for pre-settlement funding, including the type of case, its merits, the expected settlement amount, the jurisdiction, the plaintiff’s legal representation, and the defendant’s financial capacity.

The Type of Case

Pre-settlement funding companies typically focus on specific types of cases, such as personal injury, medical malpractice, and employment disputes. If your case falls within one of these categories, you are more likely to be eligible for pre-settlement funding.

The Strength and Merits of the Case

The strength and merits of the case play a significant role in determining pre-settlement funding eligibility. Funding companies evaluate the case’s chances of success and its potential settlement value to decide whether to provide financial support. Cases with strong evidence, clear liability, and significant damages are more likely to qualify for pre-settlement funding.

The Expected Settlement Amount

Pre-settlement funding companies typically advance a percentage of the expected settlement amount. A higher estimated settlement value increases the likelihood of receiving pre-settlement funding. Cases with substantial damages, such as those involving severe injuries or wrongful death, are more likely to have higher settlement values and, therefore, increased eligibility for funding.

The Jurisdiction and Legal Framework

The jurisdiction and legal framework in which the case is being pursued can also impact pre-settlement funding eligibility. Certain states have regulations that restrict or limit pre-settlement funding, while others have more lenient rules. Familiarizing yourself with the laws and regulations in your jurisdiction can help you understand your eligibility for pre-settlement funding.

The Plaintiff’s Attorney and Legal Representation

The quality of the plaintiff’s legal representation is another crucial factor in determining pre-settlement funding eligibility. An experienced and reputable attorney is more likely to build a strong case and secure a favorable settlement, which funding companies find desirable. Furthermore, some funding companies require that the plaintiff have legal representation before considering an application.

The Defendant’s Financial Capacity

The defendant’s financial capacity plays a role in determining pre-settlement funding eligibility. Cases involving defendants with substantial financial resources, such as large corporations or insurance companies, are more likely to be eligible for funding. This is because the defendant’s ability to pay a settlement or judgment is an important consideration for pre-settlement funding companies when assessing the risks and potential returns associated with providing financial support.

Tips for Improving Pre-Settlement Funding Eligibility

Here are some tips to help you improve your chances of securing pre-settlement funding:

  • Retain an experienced and reputable attorney: High-quality legal representation can significantly impact the strength of your case and your chances of obtaining pre-settlement funding.
  • Gather and organize documentation: Ensure that all relevant documents, such as medical records, accident reports, and witness statements, are gathered and organized. This will make it easier for the funding company to evaluate your case.
  • Communicate with your attorney: Keep your attorney informed about your financial needs and your intention to apply for pre-settlement funding. Your attorney’s cooperation and support are crucial in the application process.
  • Research funding companies: Take the time to research and compare pre-settlement funding companies. Look for reputable providers with favorable terms and conditions, and focus on those that specialize in cases similar to yours.

Applying for Pre-Settlement Funding

The application process for pre-settlement funding typically involves the following steps:

  • Submit an application: Complete an application form with your personal information, case details, and attorney’s contact information. This can often be done online or over the phone.
  • Case evaluation: The funding company will evaluate your case’s merits and the expected settlement amount. This may involve contacting your attorney for additional information and documentation.
  • Funding agreement: If your application is approved, you will receive a funding agreement outlining the terms and conditions of the advance. Review this agreement carefully with your attorney before signing.
  • Receive the funds: Once the funding agreement is signed and returned, the pre-settlement funding company will disburse the funds to you via direct deposit, check, or wire transfer.


Pre-settlement funding eligibility depends on various factors, such as the type and strength of the case, the expected settlement amount, the jurisdiction, and the quality of the plaintiff’s legal representation. By understanding these factors and taking steps to improve your chances of securing funding, you can access the financial support you need during the litigation process. Be sure to research and compare pre-settlement funding providers to find one that best suits your needs and offers favorable terms.