How Does the Pre-Settlement Funding Process Work?

Understanding the Pre-Settlement Funding Process

This page is designed to walk you through the pre-settlement funding process step by step. Whether you’re hearing about legal funding for the first time or just want to understand how it works at Express Legal Funding, you’ll find clear answers here.

We explain what pre-settlement funding is, who qualifies, what types of cases are eligible, the costs involved, and how repayment works once your case resolves.

What Is Pre-Settlement Funding?

Pre-settlement funding is a form of legal financing that provides plaintiffs with a cash advance while their lawsuit is still pending. Unlike a traditional loan, it is non-recourse, meaning you only repay if you win or settle your case.

This structure ensures you are not treated as a traditional debtor, since repayment is tied solely to your settlement outcome

While personal loans, credit cards, or payday advances are based on your credit score, employment history, or income, pre-settlement funding is not. Instead, approval depends entirely on the merits and value of your case and requires cooperation from your attorney.

Within the litigation finance ecosystem, pre-settlement funding gives injured plaintiffs immediate financial relief to cover living expenses, medical bills, or rent, so they can continue pursuing a fair settlement without being forced into an early, low-ball payout.

Relevant read: What Are the Pros and Cons of Pre-Settlement Funding?

How Does the Pre-Settlement Funding Process Work at Express Legal Funding?

At Express Legal Funding, the pre-settlement funding process is designed to be fast, simple, and completely risk-free. You start by applying online or by phone with your case details and your attorney’s contact information. Our team works directly with your lawyer to review the claim, and if approved, you can receive cash—often within 24 hours.

Because our advances are non-recourse, repayment is only required if you win or settle your case, making pre-settlement funding a safe way to cover expenses while your lawsuit is ongoing.

Here’s how the pre-settlement funding process works:

1. Apply and provide case details: Contact Express Legal Funding online or by phone, share your attorney’s information, and submit basic case documentation. No credit check or employment history is required.
2. Attorney verification and consent: Your lawyer provides key documents and confirms representation so we can review your claim.
3. Case evaluation and underwriter risk assessment: Our team evaluates liability, damages, and insurance coverage to determine the strength and potential value of your case.
4. Funding approval and amount determination: If approved, you can receive a legal funding contract for a cash advance, typically 10–20% of your expected settlement amount.
5. Fund disbursement: Once the agreement is signed, funds are delivered by direct deposit, wire, or check—often within 24 hours.
6. Settlement and repayment: When your case is resolved, your attorney repays the advance plus agreed-upon fees from the settlement, and you keep the remaining balance.

Timeline expectation: Once the contract is signed and your attorney acknowledges the lien, most approved clients get their funds in under 24 hours.

Over 95% of Express Legal Funding Clients Get Cash Within 24 Hours of Approval

Supporting Statistic:
Thanks to same-day ACH and e-checks, over 95% of approved Express Legal Funding clients get their pre-settlement cash advance in less than 24 hours after all parties sign the contract.

Client Testimonials: Real Stories from Satisfied Clients

At Express Legal Funding, we pride ourselves on providing fast, reliable, and consistent service. Many clients return to us multiple times because they trust our team to deliver lawsuit cash advances quickly and handle their cases with care.

Here’s what one client had to say about their experience:

Who Is Eligible for Pre-Settlement Funding?

Eligibility for pre-settlement funding depends on your case and legal representation, not your credit score or income. To qualify with Express Legal Funding, you must meet these requirements:

• Active legal claim with attorney representation: Plaintiffs must have a pending case or legal claim and be represented by an attorney working on a contingency fee basis.
• Case merit and settlement potential: The lawsuit must show clear liability and a reasonable chance of financial recovery, often through insurance coverage.
• Attorney cooperation: Your lawyer must provide documentation and confirm representation so the funding request can be reviewed.
• No credit score requirements: Approval is based solely on your case, not your financial history.
• State availability: Legal funding is regulated differently by state, so eligibility may vary depending on where you live.

This ensures funding is available to plaintiffs with strong cases while protecting clients from debt risk.

What Types of Cases Qualify for Pre-Settlement Funding?

Pre-settlement funding is available for a wide range of civil claims, most often those involving personal injury and clear financial damages. At Express Legal Funding, approval depends on your attorney’s cooperation and the strength of your claim, not your credit score. Common case types that qualify include:

• Personal injury cases: Motor vehicle accidents, slip and fall injuries, and other negligence-based claims.
• Medical malpractice: Cases involving hospital negligence, surgical errors, or misdiagnosis.
• Automotive accidents: Car, truck, motorcycle, and pedestrian collisions with insurance-backed liability.
• Premises liability: Injuries on unsafe property, including falls, inadequate security, or defective conditions.
• Employment discrimination: Workplace harassment, wrongful termination, or retaliation claims.
• Product liability: Injuries caused by defective or dangerous consumer products.
• Wrongful death: Claims filed by surviving family members after a fatal accident or medical error.
• Workers’ compensation: Cases where employees are injured on the job and are pursuing benefits or settlements.

By advancing funds on these types of cases, pre-settlement funding helps plaintiffs cover living expenses and medical bills while their lawsuit moves through the courts.

What Are the Costs Associated with Pre-Settlement Funding?

The costs of pre-settlement funding vary by provider. While some terms may sound similar to traditional loans, the structure and repayment rules are entirely different. Here are the key costs and fee concepts to understand:

• Fee structure: Most companies charge fees calculated monthly or annually. Costs are based on the advance amount and the length of your case.
• Simple vs. compound interest: Some funders use compounding rates, which can grow rapidly. Express Legal Funding only uses low rates to keep repayment fair and predictable.
• Total cost scenarios: The longer a case takes, the more fees accrue. A case lasting 6 months may cost far less than one lasting 2 years.
• Comparison to loans: Unlike credit cards or personal loans, legal funding does not require collateral, monthly payments, or a good credit score.
• Consumer protections: Certain states regulate lawsuit funding providers, requiring clear disclosures, limits on rates, and the right to cancel agreements.

At Express Legal Funding, our rates are designed to be both affordable and transparent. By working directly with us as your funding provider, you avoid costly broker markups and benefit from consistently lower, clearer costs.

Can I Get Legal Funding for Automotive Accident Cases?

Yes. Automotive accident cases are among the most common types of lawsuits that qualify for pre-settlement funding. If you were injured in a car, truck, or motorcycle collision, you may be eligible for a cash advance while your claim is pending.

• Average funding amounts: Advances are typically 10–20% of the expected settlement value, which can range from a few thousand dollars to much higher, depending on the severity of injuries and insurance coverage.
• Documentation requirements: Your attorney must provide police accident reports, medical records, proof of injuries, and details about the at-fault driver’s insurance.
• Insurance considerations: Because most accident claims are paid through liability insurance, funding approval depends on the defendant’s policy limits and ability to cover damages.
• Timeline expectations: Once your attorney submits documents, funding decisions are usually made the same day, with cash available in 24–48 hours.

Pre-settlement funding for auto accidents helps plaintiffs cover medical bills, car repairs, rent, and living expenses while waiting for a fair settlement.

How Does Pre-Settlement Funding Work for Medical Malpractice Cases?

Medical malpractice lawsuits often take longer to resolve than other personal injury claims, which makes pre-settlement funding especially valuable for plaintiffs facing ongoing medical costs. At Express Legal Funding, the process works similarly to other case types but has additional considerations:

• Extended case timelines: Malpractice claims can take years due to complex litigation, appeals, and hospital defense strategies. Funding provides interim financial relief during these long delays.
• Medical record requirements: Your attorney must supply extensive medical records, hospital charts, and treatment documentation to support the claim.
• Expert witness cost considerations: Malpractice cases typically require testimony from medical experts, which increases expenses but also strengthens funding eligibility.
• Hospital litigation complexities: Large hospital systems and insurers often fight aggressively, so funding amounts depend heavily on case strength, liability evidence, and policy limits.

Because of these factors, plaintiffs in malpractice cases may qualify for larger advances but also face longer underwriting reviews. Funding can help cover living expenses, ongoing treatment, and expert costs while waiting for a fair resolution.

What Happens if I Lose My Case?

If you lose your case, you owe nothing since pre-settlement funding is non-recourse. The financial risk is transferred to the funding company, not the plaintiff.

• Zero repayment obligation: You keep the cash advance, and no collections or payback are required.
• Risk transfer: The funding company absorbs the loss if your claim is unsuccessful.
• Legal documentation: Non-recourse terms are written directly into your funding agreement for protection and transparency.
• Case outcome scenarios: Whether your case is dismissed, the jury rules against you, or a settlement falls through, you’re not responsible for repayment.

This safeguard ensures pre-settlement funding provides financial relief without debt risk, making it safer than loans or credit-based products. It also means plaintiffs can pursue a fair settlement without the pressure to accept a low-ball offer out of fear of owing money.

This protection is a key reason pre-settlement funding is seen as a safer option compared to traditional lending.

How Do I Apply for Pre-Settlement Funding?

Applying for pre-settlement funding with Express Legal Funding is quick, free, and risk-free. The process is designed to make informed decisions easy for plaintiffs and their attorneys:

1. Complete a short application: Apply online or by phone with basic case and contact details.
2. Provide documentation: Your attorney will share key case documents such as accident reports, medical records, and proof of damages.
3. Attorney information and consent: We confirm your lawyer’s representation and secure their cooperation to review the claim.
4. Case evaluation: Our team assesses liability, damages, and potential settlement value.
5. Timeline to approval: Most applicants receive a decision within 24 hours of the attorney providing the required documentation.

No credit checks — our application process is simple, risk-free, and comes with no obligation for plaintiffs to accept an offer.

How Can I Speed Up the Pre-Settlement Funding Application Process?

You can speed up the pre-settlement funding process by making sure your attorney quickly provides all required documents, such as police reports, medical records, and proof of damages. The more complete the paperwork, the faster underwriters can review your case. Staying in close contact with your lawyer and ensuring they respond promptly helps avoid delays.

At Express Legal Funding, most approved clients receive cash in less than 24 hours once the contract is signed and your attorney signs the lien acknowledgment.

What Happens During the Case Evaluation Process for Pre-Settlement Legal Funding?

During the case evaluation process, the funding company works closely with your attorney to review the details of your claim. Your lawyer provides key documents such as accident reports, medical records, and proof of damages. Underwriters then assess the overall strength of your case, including liability and the likelihood of a successful recovery.

By reviewing medical records, witness statements, and available coverage, they determine whether your claim qualifies for pre-settlement funding and how much you may be eligible to receive.

What Role Do Underwriters Play in Pre-Settlement Funding?

Underwriters are central to the pre-settlement funding process. Their job is to professionally assess your case and determine whether it qualifies for a cash advance. At Express Legal Funding, underwriters evaluate:

• Case strength and risk: Reviewing liability, damages, and the defendant’s ability to pay.
• Settlement probability: Analyzing how likely the case is to result in a favorable settlement or judgment.
• Documentation review: Examining accident reports, medical records, insurance information, video evidence, and attorney notes.
• Decision timeline: Depending on how quickly documents are provided, underwriting can take just a few minutes to a few hours.

By using this structured review process, underwriters ensure that only strong cases are approved, which protects plaintiffs from debt risk and keeps pre-settlement funding non-recourse.

Why Might My Pre-Settlement Funding Application Be Denied?

Not every case qualifies for pre-settlement funding. Applications may be denied if the claim lacks sufficient merit or clear liability. Common reasons include:

• Insufficient case merit: Weak evidence, unclear liability, or low potential settlement value.
• Lack of attorney cooperation: Your lawyer must provide case documents and confirm representation.
• Case too early in litigation: If liability and damages are not yet established, funding may be delayed.
• Inadequate documentation: Missing police reports, medical records, or insurance details can prevent approval.
• Jurisdictional restrictions: Some states regulate or prohibit pre-settlement funding.

A denial doesn’t mean your case is invalid—it may simply require more evidence, attorney cooperation, or time before funding can be approved.

• Further reading: Why Pre-Settlement Loans Get Denied | Top 10 Reasons
• Podcast episode: Why Lawsuit Funding Gets Denied | The Legal Lifeline

Can I Get Additional Funding if My Case Takes Longer?

Yes. If your case takes longer than expected, you may be able to receive additional pre-settlement funding, but eligibility depends on several factors:

• Eligibility review: Your attorney must provide updated case documents so the funding company can re-evaluate liability, damages, and potential settlement value.
• Cumulative funding limits: The total amount advanced is typically capped at 10–20% of the projected settlement, even with multiple advances.
• Extended case timelines: Longer lawsuits often increase living and medical expenses, so additional funding can help plaintiffs manage costs.
• Re-evaluation process: Each request is treated like a new review, with underwriters assessing case progress and whether more funds are justified.

At Express Legal Funding, this process is straightforward and still non-recourse, meaning you only repay if you win or settle your case.

Relevant read: How Many Pre-Settlement Loans Can You Get?

How Does the Settlement and Repayment Process Work for Legal Funding?

When your case settles, repayment for your pre-settlement funding is handled through your attorney’s trust account according to your settlement agreement. Court costs, medical liens, and other obligations are paid first. The funding company is then repaid from the settlement, and the remaining balance is distributed to you. If you lose, you owe nothing. 

The process works as follows:

• Attorney trust account handling: The defendant’s settlement payment is first deposited into your lawyer’s trust account.
• Lien placement and priority: Court fees, attorney fees, medical liens, and other statutory obligations are paid in order of legal priority.
• Funding repayment: Your attorney repays the pre-settlement funding company the advance amount plus the agreed-upon fees.
• Partial settlement scenarios: If only part of your case is resolved, repayment may be adjusted to reflect the portion recovered.
• Excess funds distribution: After liens and funding repayment, the remaining balance is released to you.

Because repayment of pre-settlement funding depends entirely on the outcome of your case, you owe nothing if it is lost or dismissed. Repayment is made only from the proceeds of a successful settlement or judgment.

Is Pre-Settlement Funding Legal in My State?

Yes, pre-settlement funding is legal in most U.S. states, but the rules and regulations vary. Because it is considered non-recourse financing and not a traditional loan, different states treat it under distinct consumer protection and court oversight standards.

• Legal status by state: Some states have passed laws that specifically regulate pre-settlement funding, while others treat it under broader consumer finance statutes.
• Regulatory compliance: Providers must follow state-specific requirements, which can include licensing, disclosure rules, and contract language.
• Consumer protection laws: Many states require clear disclosure of fees, repayment terms, and the non-recourse nature of funding.
• Interest rate caps: A few states impose limits on allowable rates or fees, while others allow market-based pricing.
• Licensing requirements: In regulated jurisdictions, companies may need a license to operate legally.

States with Laws Regulating Pre-Settlement (Litigation) Funding

Several states have enacted specific regulations or applied general consumer finance laws to legal funding, including:

• Illinois — Consumer Legal Funding Act (815 ILCS 121; eff. May 2022)
• Oklahoma — 14A OK Stat. § 3-801 (no dedicated statute; treated under general consumer finance law)
• Ohio — Ohio Rev. Code Ann. § 1349.55
• Missouri — Mo. Rev. Stat. § 436.550 (eff. Aug. 2023)
• Maine — Me. Rev. Stat. tit. 9-A, art. 12

At Express Legal Funding, we strive to comply with all applicable laws and provide funding only where permitted, ensuring that clients are protected under their state’s consumer regulations.

10 Reasons to Choose Express Legal Funding

Ready to Get the Pre-Settlement Funding Process Started? Apply Today!

Don’t wait months or years for your case to settle before accessing the money you need. At Express Legal Funding, we make the process fast, simple, and completely risk-free. Apply today and receive cash in as little as 24 hours—and remember, repayment is only required if you win or settle your case.

Take the first step now by completing the application form below.