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Last Updated: July 21, 2025 4:47 pm
by Aaron Winston

What Is Legal Funding and How Does It Work?

Legal funding is a non-recourse cash advance that allows plaintiffs with pending legal claims to access part of their expected settlement or court award before the case is resolved. Repayment is only required if the plaintiff wins or settles, making it a risk-free financial solution during litigation.

3D icon of a hand receiving cash in front of a signed legal contract on a clipboard, featuring a justice scale symbol and an approved checkmark—representing what is legal funding and how it provides risk-free advances during a lawsuit.

Keypoints

Legal funding is a non-recourse cash advance that gives plaintiffs early access to a portion of their expected lawsuit settlement. Unlike traditional loans, repayment is only required if the case is won or settled. This type of funding helps plaintiffs cover urgent living expenses—such as rent, medical bills, or groceries—while their case is ongoing. Approval depends on the strength of the case, not credit score or income, and the process is quick, with funds often disbursed within 24 to 48 hours. Legal funding allows plaintiffs to pursue fair settlements without financial pressure and is coordinated in partnership with their attorney.

Keypoints

  • Legal funding provides upfront cash to plaintiffs during an active lawsuit, repaid only if the case is won or settled.
  • It’s a non-recourse advance, meaning there’s no personal liability or credit check involved.
  • Approval is based on the strength of the lawsuit, not financial background or employment status.
  • The process includes applying, attorney cooperation, case review, and fast disbursement (usually within 24-48 hours).
  • Benefits include immediate financial relief, reduced pressure to settle early, and risk-free repayment terms.
  • Drawbacks include reduced final settlement amounts and accruing interest over time if the case is prolonged.
  • Common qualifying cases include personal injury, medical malpractice, wrongful death, and employment disputes.
  • Legal funding cannot proceed without attorney participation and signed approval of the funding agreement.
  • Express Legal Funding stands out for transparent pricing, in-house funding, and high consumer trust ratings.

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Primary Content Category:
Law & Government > Legal (Confidence: 0.98)
Secondary Content Category:
Financial Services > Lending & Loans (Confidence: 0.92)
Relevant Keywords:
legal funding, pre-settlement funding, lawsuit loans, legal cash advance, non-recourse funding, lawsuit financing, personal injury lawsuit, settlement advance
Relevant Hashtags:
#LegalFunding, #LawsuitAdvance, #PreSettlementFunding, #LegalFinance
Additional Insight:

This FAQ page provides a comprehensive overview of legal funding, emphasizing its non-recourse nature and benefits for plaintiffs. The target audience includes individuals involved in lawsuits, particularly personal injury cases, who need immediate financial assistance. A key trend in this area is the increasing awareness and adoption of legal funding as a viable alternative to traditional loans during litigation. The content effectively addresses common questions and concerns, positioning Express Legal Funding as a transparent and reliable provider.

Legal funding is a non-recourse cash advance that allows plaintiffs involved in lawsuits to access part of their expected settlement before the case resolves, with no repayment obligations if the case is lost.

Unlike traditional loans, legal funding places a monetary lien on the case itself rather than on the plaintiff, making it a beneficial option for individuals with bad credit.

3D illustration of a hand receiving money in front of a signed legal document with scales of justice, featuring the title “What Is Legal Funding and How Does It Work?” and the Express Legal Funding logo.

Express Legal Funding is a trusted provider of pre-settlement funding, ensuring plaintiffs don’t repay unless they win. In this guide, we explain how legal funding works, who qualifies, and what to expect, empowering you to make informed financial decisions during litigation.

Legal funding (also known as pre-settlement funding, lawsuit loans, or legal cash advances) is a type of financial support provided to plaintiffs during an active lawsuit. It gives injured or wronged individuals immediate cash to cover essential expenses—like rent, groceries, or medical bills—while they wait for a fair settlement.

A friendly legal funding representative explains financial options to an injured group of plaintiffs, including a woman holding a "medical bill" and a "legal funding" sign, illustrating who legal funding helps.

Unlike traditional loans, pre-settlement funding is:

  • Non-recourse: You only repay if you win.
  • Based on case strength: Not your credit score or employment history.
  • Risk-free: If you lose, you owe nothing.
  • Pre-settlement funding
  • Lawsuit loans (often used inaccurately)
  • Settlement cash advance
  • Lawsuit advance
  • Plaintiff funding
Infographic showing four steps of how legal funding works: 1. Apply, 2. Case Review, 3. Approval & Cash, and 4. Repay Only If You Win, with diverse cartoon-style characters and the Express Legal Funding logo.
This infographic is a step-by-step overview of the legal funding process: Plaintiffs apply, have their case reviewed, receive cash upon approval, and only repay if they win their case.

Legal funding is designed to be fast, risk-free, and easy for plaintiffs who need immediate financial relief while pursuing a lawsuit. Here’s how the process works:

Step 1: Apply Online or by Phone

Submit a simple application with basic details about your case, your injuries or claims, and your attorney’s contact information. There’s no credit check, employment verification, or upfront cost to apply.

Express Legal Funding reviews your case by speaking directly with your attorney. We assess the strength of your claim, liability, and potential settlement value to determine funding eligibility. This review is based entirely on the merits of your lawsuit, not your financial background.

Step 3: Fast Approval and Cash Advance Disbursement

If approved, you’ll receive a pre-settlement advance agreement to review and sign. Once completed, you can receive your cash advance within 24 to 48 hours—often the same day. Funding amounts typically range from $500 to $500,000, depending on your case.

Step 4: Repayment Only If You Win or Settle

There are no monthly payments on legal funding. Repayment is made directly from your future settlement or court award. If you lose your case, you owe nothing—because lawsuit advances are non-recourse, meaning there is no personal liability or obligation to repay.

🟢 Ready to apply for fast, affordable pre-settlement funding from a trusted industry leader?
Apply now with Express Legal Funding and get the cash you need—risk-free.

What Is a Non-Recourse Purchase Agreement?

A smiling woman signing a document labeled “Non-Recourse Agreement” while sitting across from a legal professional.

A non-recourse purchase agreement is the legal contract that makes pre-settlement legal funding possible. Instead of giving you a loan, the funding company purchases a portion of your future settlement or judgment, meaning you only repay if you win or settle your case.

If your case is unsuccessful, you owe nothing back, and the company absorbs the loss. This non-recourse structure protects plaintiffs from debt during an already financially stressful time and is what separates lawsuit settlement funding from traditional personal loans.

  • No Personal Liability: You’re never required to repay out of pocket—even if you lose.
  • No Credit Checks: Your credit score is never affected or pulled.
  • Risk-Free for Plaintiffs: The financial risk is fully shifted to the pre-settlement funding provider.
  • Payment Comes from Your Settlement: Repayment for the lawsuit cash advance is required only if your case wins or settles.

This structure allows plaintiffs to pursue fair compensation without being pressured into early settlements just to cover living expenses.

Legal funding is available to plaintiffs with pending lawsuits who need financial support before their case settles. Approval depends on the strength of your legal claim, not your credit score or income.

  • Have a valid, pending lawsuit: Most commonly, personal injury claims such as car accidents, slip and fall cases, medical malpractice, wrongful death, or civil rights violations.
  • Be represented by a licensed attorney: Your lawyer must be working on a contingency fee basis and willing to cooperate with the funding process.
  • Have a strong case with merit: Your claim must have a high chance of settling or winning, with clear liability and damages that support a future payout.

Unlike traditional loans, legal funding does not require a credit check, proof of employment, or personal collateral. If your case qualifies, you can receive a non-recourse cash advance and owe nothing back if you lose.

Your attorney plays a crucial role in the legal funding approval process, serving as both a case verifier and a liaison between you and the funding company.

Key responsibilities of your attorney include:

  • Providing essential case documents: Your attorney shares case details, medical records, and legal filings to help the funder evaluate the strength of your claim.
  • Reviewing and signing the funding agreement: Your attorney must review and sign the contract to confirm that the terms are fair and legally compliant and to accept responsibility for disbursing repayment from your settlement once the case concludes.
  • Coordinating repayment after settlement: Once your case settles, your attorney works directly with the provider to repay the advance from the case proceeds.

Learn how your attorney plays a key role in the legal funding process in our guide: Do I Need a Lawyer to Get Legal Funding?

Important Fact: Legal funding cannot move forward without your lawyer’s active cooperation. You must have a lawyer who is willing to share case details and sign the funding agreement for your application to be approved.

This collaboration ensures the funding process is smooth, transparent, and aligned with your best legal interests.

Legal funding offers plaintiffs critical financial support while their lawsuit is still pending, without adding personal financial risk or monthly debt.

Infographic showing the top benefits of legal funding, including immediate cash, no credit checks, risk-free repayment, and the ability to avoid low settlement offers.
This infographic highlights the top benefits of legal funding for plaintiffs, such as fast access to cash, no credit checks, zero repayment risk, and stronger settlement outcomes.
  • Immediate cash when you need it most: Use funds to cover rent, medical bills, groceries, or other urgent living expenses during your case.
  • No credit checks or monthly payments: Approval is based on your case, not your credit score, income, or employment status.
  • Zero risk if you lose: Legal funding is non-recourse, so you owe nothing if your case doesn’t settle or win.
  • Reduces pressure to settle early: Financial relief gives your attorney time to fight for the full value of your claim instead of accepting a lowball settlement.
  • Peace of mind during stressful litigation: Focus on recovery and legal strategy while your immediate financial needs are covered.

Legal funding provides fast, risk-free financial relief, but like any financial tool, it comes with trade-offs that plaintiffs should carefully consider before applying.

Potential Drawbacks to Keep in Mind:

  • Reduces your final settlement payout: Legal funding is repaid from your case proceeds. The more you borrow, the less you’ll keep after attorney fees and other costs are deducted.
  • Costs can increase over time: Legal funding agreements have interest. The longer your case takes to resolve, the more you may owe.
  • A good credit score won’t lower your rate or improve approval chances: Legal funding is based solely on your case strength, not your creditworthiness.
  • Approval is not guaranteed: Cases with unclear liability, minimal damages, or poor documentation may not qualify for funding. 

Pro Tip: Always have your attorney review the funding agreement and make sure you understand all terms before accepting an offer.

Legal funding is available for a wide range of civil lawsuits, especially those with strong liability and the potential for a monetary settlement. The most common qualifying case types include:

  • Car accidents and personal injury claims – Including motorcycle, truck, pedestrian, and rideshare accidents.
  • Slip and fall (premises liability) – Injuries caused by hazardous property conditions or negligent maintenance.
  • Medical malpractice – Cases involving surgical errors, misdiagnosis, or negligent care by healthcare providers.
  • Workplace or construction accidents – When third-party negligence causes injury on the job.
  • Wrongful death claims – Filed by surviving family members seeking compensation after a preventable fatality.
  • Employment discrimination or retaliation – Including wrongful termination, harassment, and wage disputes.
  • Product liability or defective medical device lawsuits – Claims against manufacturers for dangerous or faulty products.

No. Legal funding is not a loan; it’s a non-recourse cash advance tied to your lawsuit. You only repay if you win or settle your case, and you owe nothing if you lose.

The amount of legal funding most plaintiffs qualify for is 10% to 20% of their anticipated settlement value. At Express Legal Funding, advances range from $500 to $500,000, depending on your case strength.

If your attorney responds quickly, you may receive funding within 24 to 48 hours of applying. Express Legal Funding uses a streamlined process to ensure fast approvals.

Do I need my attorney’s approval?

Yes. Your attorney must review and sign the funding agreement for your application to proceed. Legal funding cannot be finalized without your lawyer’s cooperation.

Learn more in our detailed guide: Can I Get Pre-Settlement Funding Without Attorney Consent?

What happens if I lose my case?

You owe nothing. Because lawsuit cash advances are non-recourse, you keep the money with no repayment required if your case is unsuccessful.

No, legal funding is generally not considered taxable income. Because of its non-recourse structure, the IRS does not count it as part of your gross income, so you typically don’t need to report it on your tax return.

Learn more about the taxation status of legal funding in our guide: Do I Have to Pay Taxes on Pre-Settlement Legal Funding?

Yes—legal funding is safe when provided by a reputable company like Express Legal Funding. We prioritize transparency, consumer protection, and full compliance with all applicable laws.

Here’s what makes our legal funding safe:

  • Clear, easy-to-read contracts with no hidden terms
  • Transparent pricing—no confusing interest structures or heavily compounding interest
  • No upfront fees or surprise charges
  • 100% non-recourse funding—you only repay if you win
  • Compliance with state-specific pre-settlement funding regulations

Plaintiff financing is largely regulated at the state level, and rules vary by jurisdiction. These may include requirements for disclosures, fee caps, and attorney involvement.

At Express Legal Funding, we not only meet but often exceed these standards, advocating for stronger legal protections for plaintiffs nationwide.

Happy plaintiff holding an “Approved Funding” sign with two Express Legal Funding team members, framed by icons showing A+ BBB rating, no credit check, and client trust, why plaintiffs choose Express Legal Funding.

Express Legal Funding stands out as a trusted, plaintiff-first provider of risk-free settlement advances. Here’s why thousands of injured claimants choose us:

  • Direct Funder (Not a Broker): We fund cases in-house, so you get faster approvals, lower fees, and more money in your pocket.
  • Zero Risk If You Lose: Our guaranteed pre-settlement funding is 100% non-recourse—no repayment is required unless you win or settle.
  • No Credit Checks or Upfront Fees: Approval is based solely on your case, not your credit or income.
  • Transparent Terms: Our easy-to-read contracts include flat pricing and no hidden fees or heavily compounding interest.
  • Top-Rated and Trusted: We’re proud to have an A+ rating with the Better Business Bureau and a track record of helping plaintiffs across the country.

If you’re struggling financially while your lawsuit is pending, Express Legal Funding can help you access fast, risk-free cash without any upfront costs or credit checks. Applying is quick, confidential, and entirely obligation-free.

Here’s how to get started:

  • Step 1: Call us or apply online in just minutes
  • Step 2: We’ll review your case with your attorney
  • Step 3: If approved, receive funding in as little as 24 hours

You only repay if you win or settle—otherwise, you owe nothing.

📞 Call us now at (888) 232-9223 or apply online to see how much you qualify for.

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