A settlement advance is the financial backing provided to plaintiffs with pending claims and in need of immediate cash. Settlement advances are commonly used terms to describe settlement funding. A pre-settlement cash advance is non-recourse and is not a loan because the lender does not base the advancement on credit scores, employment status, or assets. This type of financing is called non-recourse because you don’t have to pay back the funds if you don’t win your case. All funding provided is free of any risk, and the advance funds will be based only on the value the funder gives your case.

Non-recourse funding or plaintiff loans are essentially investments into a potential compensation that is not backed by assets, such as your home, bank account balances, or car title, nor recourse such as your credit score or employment status. To have a loan “backed” by an asset and recourse means that a financial institution has the right to take that asset in the event that you cannot pay the money; therefore, they are viewed as less risky by banks and have much lower rates. On the other hand, non-recourse loans are not backed by any of these recourses and tend to have higher interest rates (depending on the pre-settlement finance provider) than traditional loans. Lawsuit loan companies view your expected settlement proceeds as collateral. Like Baker Street Funding, some lawsuit lenders offer low, fair-rate, non-recourse lawsuit financing, which may be used for a variety of purposes—like paying off household debt or medical bills.

Pre-settlement advance companies generally offer two types of legal funding programs to plaintiffs involved in civil lawsuits. These services are pre and post-settlement funding.

• Pre-settlement funding: Simply put, a pre-settlement advance
• is a cash advance in the form of a check or a wire, provided to victims with unsettled lawsuits. They carry higher interest rates than post-settlement funding (settled cases) because of the extra risk involved in pre-settled cases, meaning, no-win, no-pay. 

• Post-settlement funding: Post-settlement funding companies also provide financing for settled cases, but the victim has not received payment yet. While there is a lower risk for the plaintiff, this type of loan carries a high risk to the loan institution because there is still a chance that the defendant can default on the judgment and not pay.

Same-day settlement loans enable you to quickly obtain the cash you need in less than one day.

Same day funding is possible. Although we are not going to sugarcoat the words here to get plaintiffs to apply as other companies do, with specific requirements, we can provide you with lawsuit financing in less than 12 hours. Before you apply, consult with your attorney to help you with this decision. Your lawyer needs to be prepared to send the documents from the moment the funding is requested to get you funded that same day. Plaintiffs will receive a cash incentive on the same day of the application under certain conditions:

• Your attorney has to cooperate by sharing the files and speaking to underwriting the same day. If your lawyer is willing to do that, then underwriting can analyze your case in less than 6-12 hours.
• Funders can provide you much quicker financing if your lawsuit has already settled before trial or a judge has already made the final decision for your case. All that is needed is one document, the settlement agreement.

What you need to do: 

To get approved for a loan against your settlement that same day, you must make sure your attorney sends the documents first thing in the morning if you plan to receive funds wired into your account that same day. Upon same-day approval, both the plaintiff and the attorney must be present when signing the contract before 3 pm (bank wire cut time). If a check is preferred, then you will receive the funds the next day. Getting funded on the day you request your loan can only be executed by sending you a bank wire you will get that same day. Same day settlement funding helps injured victims involved in significant accidents get the money they need quickly. 

Pre-settlement advances offer plaintiffs the freedom to secure cash against their expected settlement or award. See what you need to do first before you apply for settlement financing: 

• Traditional bank lending: Bank loans are alternatives to lawsuit loans; the problem is you can’t access them with bad credit, no job history, or a large amount of outstanding debt. You also cannot access if you had a bankruptcy recently and other hindrances. 
• Leveraging assets: It would be good to know that you can also leverage an asset such as a home, an automobile. 
• Borrow money: Before getting a loan from your lawsuit, try to borrow money from family members and/or friends. 

If you have exhausted your financial options, your only other option might be applying for a loan against your lawsuit. 

Non-recourse cash advances serve the needs of plaintiffs that are having money problems while waiting for their cases to conclude. Here are some reasons to consider a cash advance against your litigation:

• Facing eviction or foreclosure.
• Purchase or lease a vehicle to get to work.
• Keep your small business afloat.
• Need the money to finish a college degree or professional training.
• Need money for your children’s education.
• Supplement disability payments.
• Improve credit score by paying down bills.
• Resolve claims against you by collection agencies.

It’s important to thoroughly assess your entire financial picture before taking out a loan against your pending lawsuit. Once you’ve made the decision that you would like to apply, be sure to select a trustworthy funding company to work with.

Lawsuit loans can be a great tool to help you fight for the settlement you deserve, so you don’t settle for a lowball amount. Many times, when victims are in the middle of a lawsuit, they run out of financial options to support themselves so they can keep their cases moving forward. A loan from your lawsuit is a resource that could help you support yourself while the lawsuit goes to trial or a better payment is awarded. They could be useful as long as you understand the rate is fair for the risk that lawsuit loan companies take.
Acquiring the pre-settlement funds you need enables you to effectively deal with the defendant’s delays, allowing you to wait for fair compensation so your attorney can negotiate a better offer. This type of financing is extremely popular with personal injury victims who find themselves injured while their case is being litigated and can be beneficial in personal injury cases where severely hurt victims cannot work during the court process. For example, a medical malpractice victim who finds himself hurt and out of work will seek financial relief due to the sustained injuries that have caused him or her an economic fall.

Lawsuit loan companies use certain prerequisites before approving a loan. Please be advised that, depending on your case, more or less may be needed to qualify. The requirements consist of:

• An attorney’s representation.
• The case must be solid and have a high probability of winning it.
• For settled lawsuits, a minimum settlement of $50,000 is required for funding.
• Your attorney’s co-operation is a must. Without it, we cannot fund your case.

To see if you are eligible, please fill out an application online or over the phone at (888) 711-3599.

Baker Street Funding understands the financial pressures victims go through during litigation and do its best to provide cost-friendly solutions. We are committed to offering quick financing for plaintiffs involved in most personal injury, employment, and civil rights claims. If you don’t see your case type below, please call us at (888) 711-3599 to see how we can help you. See some of the cases we primarily fund:

Baker Street Funding funds in most states of North America depending on state law, the states we fund are as follows: