Different types of legal funding are available when you have a personal injury case or claim. Lawsuit funding companies generally consider whether the case is in pre-settlement or post-settlement. A settlement is an agreement resolving a dispute or establishing a party’s rights. The legal term often used here is “full and final settlement”. But plaintiffs often ask,  “What does post-settlement mean?” We’ll answer this question as it pertains to legal funding.

Pre- vs. Post-Settlement Funding

Pre-settlement funding is awarded to a plaintiff who is awaiting a settlement. The funding company issues a cash advance against the eventual award in the case. It takes on significant risk in doing so. But post-settlement funding is approved for individuals whose cases have already been settled. They’re just waiting to receive the cash.

Post-settlement funding provides the money needed to pay bills. Like a pre-settlement advance, it’s not paid back directly, but instead out of the proceeds of your settlement. Therefore, you can cover various expenses between when your case concludes and the cash award is received.

The process doesn’t end just because an agreement is reached between opposing sides. A settlement can take time to be paid out because:

Advantages of Post-Settlement Over Pre-Settlement Funding

What does post-settlement mean as far as receiving your cash advance? For one, it is taken against a forthcoming award rather than pending litigation. The lender is taking on less risk. Therefore, post-settlement funding tends to be less expensive. A dollar figure has already been determined and awarded to the plaintiff. The post-settlement funding company does not have to estimate a value and can purchase the settlement proceeds directly.

What Happens Post-Settlement?

A case can settle before going to trial. Settling out of court can save money and reduce the risk of losing the case. Whether an insurance company or the defendant’s legal team makes a payment offer, you’ll need documentation to prove the status of your case. Documents a post-settlement funding company may request include:

Once these documents are completed and signed, checks can be issued. The settlement money will be dispersed to medical lien holders, your attorney, and yourself. Any legal funding company that provided you with a cash advance also will be paid before you receive the remainder.

Apply for Post-Settlement Funding with Fund Capital America

We provide pre- and post-settlement funding and other legal services for plaintiffs and attorneys in personal injury cases. Our approval process is quick. You can receive financial relief within 24 hours with no hidden fees or out-of-pocket expenses. Apply today for a non-recourse post-settlement cash advance, or learn more about what post-settlement means by calling (855) 870-2274.