When you’re in the middle of a personal injury lawsuit, financial pressure can mount quickly. Legal funding, also known as a “lawsuit cash advance,” is a tool many plaintiffs use to regain financial stability. One of the first questions plaintiffs ask is: “Does my case have to be worth a certain amount to qualify?”
While the answer varies between funding companies, the focus isn’t always on a simple minimum dollar amount. Some lenders may only review cases valued in the six figures, while others are more flexible.
How Lenders Determine Your Case’s Value
Your attorney and a funding company’s underwriting team will analyze several factors to estimate a realistic case value. This isn’t guesswork; it’s a careful assessment based on tangible details.
Key factors include:
- Clear Liability: How clearly and provably is the other party at fault?
- Severity of Damages: This includes documented medical bills, anticipated future medical costs, and lost wages.
- Strength of Evidence: The quality of documentation, police reports, witness testimony, and medical records.
- Defendant’s Insurance Policy: This is a crucial, practical factor. A case might have $500,000 in damages, but if the defendant’s insurance policy limit is $100,000, that is the most likely source of recovery.
- Case Precedent: What have California juries and courts awarded in similar, recent cases?
Your attorney provides these details to the funding company. The lender’s team then verifies this information to determine the case’s strength and potential.
A Core Insight: Non-Recourse Funding Means We Assume the Risk
It’s essential to understand that legitimate legal funding is non-recourse. This term is central to the industry and provides significant peace of mind.
“Non-recourse” means you only repay the funds if you win or settle your case. If you do not receive a favorable jury decision or a settlement, you owe Fund Capital America nothing.
The funding company assumes 100% of the risk. This is why our team must be diligent in evaluating your case—we only get paid if you do.
How Much Funding Can I Receive?
As a general guideline, plaintiffs are typically eligible to receive between 10% and 20% of their case’s estimated net settlement (the amount left after attorney’s fees).
For example, if your case is estimated to settle for $500,000, a funding company might approve an advance between $50,000 and $100,000.
This percentage might seem low, but it’s designed to be responsible. It ensures that when your case does settle, there is more than enough to cover the repayment, your attorney’s fees, and—most importantly—still leave you with the vast majority of your hard-won settlement.
Using Your Funds for What Matters
In most states, including California, there are no restrictions on how you use your legal funding. The advance is not meant to pay for your legal fees—your attorney typically handles those on contingency.
Instead, the funds are intended to cover the necessities of life during your lawsuit, which can drag on for months or even years. This allows you to reject a lowball settlement offer made by an insurance company trying to take advantage of your financial distress.
Plaintiffs use their funding to pay for:
- Rent or mortgage payments
- Utility bills
- Car payments or transportation
- Groceries
- Medical expenses and prescriptions
Ultimately, legal funding is a tool to relieve financial pressure, giving your attorney the time needed to fight for the full and fair value of your claim. Understanding how your case is valued is the first step in deciding if it’s the right option for you.
Who is Fund Capital America?
Since 2006, Fund Capital America (FCA) has been a trusted leader in pre-settlement funding, providing cash advance loans to plaintiffs in personal injury and accident cases. Over the years, FCA has proudly served thousands of law firms and tens of thousands of clients, helping them navigate the financial challenges of litigation. While our core service is pre-settlement funding, we also offer a comprehensive range of services to support law firms and their clients from the beginning of the case to the final settlement check distribution.
Fund Capital America’s Services
In addition to pre-settlement funding, FCA provides a broad array of services designed to alleviate the financial and administrative burdens on injury victims, law firms, and medical professionals. Our services include:
- Pre Settlement Funding
- Policy Limits
- Doctor & Medical Facility Directory
- Doctor & Medical Facility Scheduling
- Language Services
- Investigation Services
- Medical Legal Finance
- Surgery Funding
- Medical Lien Funding
- Law Firm Funding & Law Firm Banking Services
- Law Firm Line of Credit
- Medical Receivables Financing
- Law Firm Services
Get the Legal Funding Support You Need in Just 5 Minutes!
Here’s how it works:
Fill out our application form: It takes just 5 minutes to provide the necessary details about your case.
Get prequalified: Our team will review your application and get back to you swiftly, often within hours.
Need assistance? Call us at the number provided for immediate support from our knowledgeable staff.
Don’t let financial stress prevent you from focusing on your recovery. Apply now to secure your lawsuit cash advance!
