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Last Updated: July 24, 2010

After searching, you may have found a number of information-packed sites attempting to sell you their goods or services. At CaseFunding, we're striving to take a different approach that doesn't bombard you with sales jargon and is intended to help you make the right decision. We are dedicated in providing accurate, useful, and up-to-date information regarding our industry, commonly known as pre-settlement funding. The goal of this section is to provide you with as much helpful information as possible, so you know how pre-settlement funding works and what you should expect from us. As always, we are here to help if you have any questions. Feel free to contact us online or call us at 1.800.790.9992.
Pre-settlement funding, as defined by wikipedia.org, is "money being advanced to victims in personal injury cases to alleviate their quality of life (which has been impaired by the injury) up until the settlement at trial." Pre-settlement funding, (aka litigation funding, accident funding, personal injury funding, non-recourse advances, or personal injury cash advance) is "a practice in which individuals who are plaintiffs in lawsuits receive money from firms and individuals who take a lien on the proceeds of a personal injury suit in return for ready cash. It is not considered a loan as the money does not have to be repaid if the plaintiff's law suit is unsuccessful; it is nonrecourse debt."

Simply put, a case is seen as an investment opportunity to a funding company. Clients are advanced money in exchange for a percentage of their settlement or verdict. If the client's case settles, the money is repaid based on a previously agreed upon percentage. If the case is lost, the client does not owe any money. Whether clients work with CaseFunding, or another provider, it is this statement that is often met with skepticism, as it seems there should be a catch. However, it is the experienced evaluation of the case's potential that allows for such a high-risk investment. A case approved for funding does not guarantee it will be won; but a funding protection policy, like this, along with new found financial stability, should certainly give you, the client, some peace of mind. So, a bit of advice would be to confirm that your pre-settlement funding provider offers this type of policy.
As a client, there are a few things you should expect. The first thing is fast and professional service. This should be expected throughout the funding process, but most importantly during the application process. Generally, a response—and even an approval—can be expected between 24–48hrs. However, in certain instances, it may take extra time, but this is rare and varies on a case to case basis. A good funding company knows that when money is needed, there is no time to waste.

The second thing a client should expect is to not feel pressured or rushed. When making a funding decision, you should feel comfortable taking your time in discussing the details with your provider, or your attorney. In some cases, a client may be needing a large advance. Sometimes this can be a cumbersome decision to make, especially in addition to any existing circumstances. So, a good tip is to take your time, and thoroughly discuss any concerns with your attorney and your provider before signing off on anything.

The last thing you should expect as a client is to not be "over-advanced." It is never good to borrow more money than you can realistically pay back. Be sure to ask the provider how the funding is structured, and how much you will need to pay back, in relation to your final settlement estimates. A good funding company will not allow you to borrow too much, since they may have a lien, or at least a large interest in the success of your case, and will want to insure their investment. So remember, a good funding company never advances more money than a case is realistically worth, and, in fact, should structure your funding to minimize your fees and risk.
There are many reasons people choose the route of plaintiff funding, and in most cases, it can help alleviate tough financial situations. While some funding companies offer financial advising services, most are not involved in, or have no control over, how a client chooses to spend their advance. Clients of CaseFunding have used their funds for catching up on debts, including medical bills; buying or remodeling their homes; buying vehicles, or adapting their existing vehicles for handicap accessibility; hiring in home assistance; or even paying for general living expenses. The way the money is spent is entirely up to the client. Clients who require this type of funding may be in a tight financial situation, where their credibility may be in danger. Most companies do not perform credit checks or require a work history. In addition, most companies don't require monthly payments. So for some plaintiffs, pre-settlement funding is a viable alternative to filing for bankruptcy, refinancing, or consolidating debts.
Sometimes a case can be prolonged due to unexpected circumstances. And if funds are not available to maintain the case, this can put a great strain on everyone involved. There are court costs, expert fees, or even overhead that must be paid to continue building a case for trial. Most lending companies are aware of this need, and can offer attorneys a similar recourse funding option.