The legal process can be long and financially draining when you’re involved in a personal injury lawsuit in California. Whether you’re a plaintiff struggling to make ends meet or a legal team advocating for your client, lawsuit funding can help you carry on with your life. However, not all legal funding companies are similar. Understanding the key differences between pre-settlement and post-settlement funding can help you choose the right solution for your needs.
This blog will discuss the definitions, benefits, drawbacks, and main differences between pre-settlement and post-settlement funding—so you can make an informed decision.
What is Pre-Settlement Funding?
Pre-settlement funding is a cash advance provided to plaintiffs while their lawsuit is pending. It is not a loan but rather a non-recourse financial advance based on the expected outcome of the case. This funding allows plaintiffs to cover living expenses, medical bills, and legal costs without having to settle prematurely for a lower amount.
Pros of Pre-Settlement Funding:
- Financial Stability: Helps maintain living standards and cover essential expenses during lengthy legal battles.
- No Credit Checks: Funding is based on the merits of the case, not credit scores.
- Non-Recourse: No repayment is required if the case is lost13.
- Access to Better Legal Representation: Enables plaintiffs to afford experienced attorneys and experts.
Cons of Pre-Settlement Funding:
- Higher Costs: Typically more expensive due to the higher risk for funding companies.
- Case Evaluation: Requires a strong case to qualify for funding.
What is Post-Settlement Funding?
Post-settlement funding provides financial assistance after a settlement has been reached but before the funds are disbursed. This type of funding is less risky for the funding company since the settlement amount is already determined.
Pros of Post-Settlement Funding:
- Lower Costs: Generally less expensive than pre-settlement funding.
- Certainty of Settlement: Funding is based on a confirmed settlement amount.
- Quick Access to Funds: Helps bridge the gap between settlement approval and payment receipt.
Cons of Post-Settlement Funding:
- Limited Flexibility: Only available after a settlement is reached.
- Dependent on Settlement Terms: Requires a formal settlement agreement.
Key Differences Between Pre-Settlement and Post-Settlement Funding
| Feature | Pre-Settlement Funding | Post-settlement Funding |
| Timing | During litigation | After settlement agreement |
| Risk Level | Higher risk for funding company | Lower risk, as settlement is confirmed |
| Costs | Generally more expensive | Less expensive |
| Eligibility | Requires strong case prospects |
What You Should Know
Lawsuit funding can offer much-needed breathing room when legal battles stretch on. Pre-settlement funding helps maintain financial stability during lengthy legal battles, while post-settlement funding bridges the gap between settlement approval and payment.
Understanding the differences between pre-settlement and post-settlement funding ensures you’re choosing the right path.
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!
